When selling one's company, it is normal to have concerns. Working through the sale of business can be intimidating and stressful, which is understandable. It is only normal for a business owner, whether in Michigan or elsewhere, to want to make sure that he or she is getting the best deal possible when negotiating an acquisition.
Part of business planning involves deciding what one will do with the company when he or she is ready to retire or what will be done with the company upon his or her death. Many family business owners in Michigan are likely to choose keeping their companies within the family, which is understandable. The real question then is should the transfer to relatives come through a sale of business or by giving the business as a gift?
The popular Michigan-based salsa company, Garden Fresh, was recently acquired by Campbell in a multi-million dollar business deal. According to the current vice president of Garden Fresh, this sale of business will allow the company to put product on store shelves across the country, rather than just focusing on the Mid-West region. Making a decision like this is not always easy, but in this case, the desire to compete with bigger companies and to expand product reach made this sale a necessity.
Building successful businesses from the ground up gives owners senses of pride and accomplishment -- and for good reason. However, there comes a time in every business owner's life when he or she will have to decide what to do with his or her company upon retirement. For some owners in Michigan and elsewhere, the sale of business may be the answer.
Whether by choice or necessity, closing a business, whether in Michigan or elsewhere, is something many owners face. The dissolution of a business may be something for which a plan exists -- if an owner has no intention of keeping his or her company open after his or her retirement or death, -- or it may be something for which no plan is in place. Regardless of when or why an owner decides to close up shop, a lot of preparation and planning goes into closing a business successfully and with the proper legal protections in place.
Most business owners in Michigan start out with small operations. Some choose to stay that way, while others work hard and grow their products to become nationally known brands. Massive growth is something the creators and original owners of the Flatout bread company have succeeded in doing. However, in order to help their business grow, the owners made a sale of business.
Investors in Michigan may be interested in news that could potentially be disruptive to the online travel industry. In a statement issued on Feb. 12, Expedia announced its intent to acquire Orbitz for a total value of $1.6 billion, including $1.34 million in cash, as well as net debt. The transaction has already been approved by both companies' boards, but still needs to be approved by Orbitz shareholders and regulatory bodies.
Michigan small business owners may be wondering if the time to sell their company is now or in the near future. There are many things to take into consideration, decisions to be made and actions to be taken if an owner is contemplating a sale.
A Michigan entrepreneur may not think about getting rid of a business at the start of operations. However, experts indicate that this is the very point at which the sale of business should be considered. Planning should continue from this point going forward. As an example of the importance of the issue, statistics indicate that an estimated 12 million small businesses in the nation will be sold over the next 10 years, attributed primarily to the imminent retirement of many Baby Boomers.
Business owners and entrepreneurs in Michigan might find it beneficial to learn more about the sale of an enterprise as described by the IRS. Each asset associated with the business is to be sold individually so gains and losses can be properly evaluated. However, because many businesses require a variety of assets to sustain operations, the assets should be classified appropriately.