The decision to sell one's business may come out of want or necessity. There is nothing wrong with moving on, passing the torch to the next generation, wanting to retire or helping the business increase its overall state and national presence. There are certain things company owners in Michigan and elsewhere may want to consider, though, before proceeding with the sale of business.
Before accepting just any offer that comes along, it will be important to determine a company's value. What does that mean, exactly? It means determining how one's business aligns with what buyers are looking for, which may involve reviewing assets, liabilities, current and potential income and market value.
Another thing to consider before putting one's business up for sale is timing. There simply are times that are better to attempt a sale than others, which -- unfortunately -- can be somewhat difficult to determine. It is believed that some of the best times to attempt the sale of business include:
- When an owner is ready for a change
- When the business is performing well
- During good economic times
The sale of business is not a minor decision, and it is something that certainly requires significant thought and planning. A Michigan business owner can seek legal guidance to assist in not only determining the value of his or her company, but in deciding if the timing is right for making such a move. Further help is available throughout the sales process to ensure legal protections are put in place and contracts appropriately drafted and executed.
Source: Forbes, "5 Things You Need To Know To Successfully Sell Your Business", Neil Patel, Aug. 27, 2015