Your individual goals most likely aligned with your company goals if you started your company.
Perhaps you’re considering selling your company because the alignment is not as vital anymore.
You will find many very good reasons for doing this. You may have considered handing over the company to your children, though they possibly do not wish to dominate the company. Or perhaps it is time to retire and take pleasure in the assets you have accumulated. Or maybe you might have that itch to go from managing a mature business to producing a fresh start up.
One more strategy will be selling your company and remain an advisor, senior leader, or maybe specialist on a part time or maybe full time basis. Such an arrangement can truly improve the importance of your small business as a result of the existing associations with key personnel, suppliers, and customers. In case you decide to stay on, potential customers will pay much more for your company, since it lessens disruption and also lowers risk.
Whatever your motives, think very carefully. The sale of your organization represents a major one-time event, without any “do-overs.” Selling your small business comes with numerous benefits, obviously, but there are several pitfalls to think about.
The advantages of business sales include:
To structure a deal which transfers your small business to brand new users and makes liquidity for you, but enables you to stay involved in case you really choose.
To take advantage of the opportunities which are available. It may be the perfect time to sell your small business to get the best money possible. The trends within your industry, and the general economy, might develop high demand, but that may change as time passes.
To keep you involved with the company you have worked extremely hard to create, by serving as a senior advisor or executive to assist the customers help make the smooth transition to brand-new ownership.
To diversify your private finances. Selling your company could be an excellent approach to turn several of your most precious assets into fluid and diversified investments, in case the equity belongs to the best part of your company.
There are drawbacks.
Selling your company is able to have its hurdles, including:
Performing very complex transactions that need extensive negotiations over an extended time.
A possible requirement you sign a non compete agreement, which may restrict your power to talk to the same businesses – or even begin another business with a specified time frame.
There’s a chance that you are going to need to fund a percentage of the transaction, that could place several of your property at risk. Nevertheless, in case new owners choose to remain engaged with the company after the purchase, they might be much more prepared to finance much more of the purchase price.
Think thoroughly about selling your company. Just before you try to make this crucial choice, have a talk with your accountant and lawyer, and get them all of your questions.