There can be many reasons why you might be looking to sell your business. Regardless of the reason, you need to make sure you jump through all of the right legal hoops for it to be a valid sale. And you need to make sure you get a good price, too!

Decide Your Terms

In a way, deciding your terms is a form of budgeting. Deciding a budget before making a purchase means that you have a self-imposed safety net preventing you from hitting serious financial problems. The terms that you choose for the sale of your home will not be a solid, static, unwavering set of demands (at least in most cases), but rather a range. Prepare to be as flexible as possible in order to find a buyer. But also know what is most important to you and non-negotiable. Don’t just consider buying price – think about fees, ownership privileges, profit percentages, and current employees.

Get an Accurate Valuation

In order to decide your terms, you need to know what the business is worth. There may or may not be good online resources for estimating your company value (like there are for cars), so you will likely need to talk to a professional. A valuation expert can look at your assets and finances to come up with an accurate valuation. Some may charge a fee to even look at your business; others may offer a free preliminary consultancy. Know the local options and do the research necessary to be confident in their ability. Read reviews and talk to other business owners who have gone through this process before. A reference from somebody else will be your best bet.

Think About People on the Peripherals

The other people who are affected by your transaction are going to vary greatly depending on your circumstances and your company. A business that is owned and operated solely by you will still affect your family when sold, at the very least. If you have employees or co-owners that you need to involve, you need to take them into account as well. You should keep them in mind when discussing the terms with the buyer and understand how they intend to go about the transition. Think about how it affects customers, too.

Selling a business can be a rough process – no doubt about it. Keeping a balance between a good price for both you and the buyer, as well as making sure the transition goes smoothly, is like threading a very small needle. But if you take care to know what you’re doing, it will all work out okay.

Check out this article on legal essentials to get your business started!