For any business owner, there may come a point that they are thinking about, or have even decided, that they are selling their business. If so, then one of the first things they need to do is discuss this with their commercial lawyer who will be able to provide some legal advice for them about the legal steps that are necessary for such a sale.
In addition, the business owner needs to consider five very specific questions in relation to selling their business. These questions might not sway his decision, or reverse it, but the answers will help them to prepare for the sale and ensure that it goes as smoothly as they hope it will.
Who Is Buying The Business?
It is likely that if you have made it known that you are considering selling your business that pretty soon you will have one or more interested parties making contact. Depending on the type of business and its size, the range of those interested in buying it may include your competitors, investment companies, a sole entrepreneur, or it could be a partnership.
Depending on how much you want the reputation of the business to be maintained, and its customers and your employees to be treated every bit as well as you have, then you may consider that certain potential buyers do not have fit the criteria you are looking for and eliminate them from your shortlist.
What Are Your Current Agreements?
This refers to all the agreements and contracts that you have in place with your employees, your suppliers, your clients, and even your landlord. You need to ensure that if you are considering selling your business that they are all up to date, and more importantly, that they stand up to legal scrutiny.
Get your commercial lawyer to double-check that the terms of any contract or agreement are legal and therefore will not cause any issues for an incoming buyer, especially those that might not have been previously checked by them.
Are You Selling All Or Just Part Of The Business?
It may the case that if you have a larger company, possibly with sub-divisions, that you consider selling just a part of it, rather than the entire business. This is often a great way to release some capital in order for you to invest and expand those parts of the business which you have the greatest passion for, or where you believe that it has more potential for growth than perhaps the part of the business you are selling.
Are The Terms Of The Sale Suitable For You?
Assuming that you have had your commercial lawyer confirm any contract to sell the business is legal, then it just remains for you to absolutely confirm to yourself that you are selling the business under terms which you are happy about. This is not just about getting the right price, important though that is, but possibly the payment terms such as the full amount or part payment and subsequent payments made over time.
Have You Decided What You Want To Do After the Sale?
If you have clearly marked out your path and your goals after the sale of your business then that is a great place to be. if you have not, we suggest you sit down and think about it soon, as suddenly going from being a business owner with all the daily activity that requires, to having nothing to do all day, can be a difficult adjustment to make.
