Every business has a host of activities associated with it. The management including the business owners require deciding upon manufacturing and sales activities.
Business owners running an enterprise may find it hard to continue with their business at some point in time in their life. They find it hard to continue with the day to day affairs of the business. Some contemplate on selling their businesses. In this context, it is important to say that business owners can sell their business online using relevant portals. They can use the services of brokers to sell their respective businesses. Both the methods have their own advantages and disadvantages. While selling a business, the common thing is to prepare and value, advertise a business for sale.
Sell a business
If you intend to sell off your business then you require engaging in effective negotiations before you can conclude the deal successfully. The price that you get for your business is undoubtedly important but there are other factors that you require considering while negotiating with the buyers.
Stages of Selling a Business
The different stages of selling a business successfully are listed as follows:-
- Evaluating a business
- Preparing the business for sale and this includes the steps required to enhancethe business value
- Taking advice (related to tax) and highlight on subjects that may affect the business deal
- Identifyingprospective buyers
- Meetingas well as negotiating with the potential buyers
- Seeing the legal aspects while dealing with the buyer
- Finalising the agreement of sale and then transferring business ownership
- Ensure that the business is in shape
To enhance the business sale value focus on cutting costs, reducing excessive stocks, decreasing the debts and all other things that help to get the finances in good order.Buyers prefer to access business financial information prior making an offer. As a business owner, it is important to prepare the information as quickly as possible.
Though there are more than one ways to value a business, it is advised to seek the assistance of a specialist (corporate advisor/accountant). These professionals usually help to make the realistic valuation of the business.
Selling a business
Selling a business implies that the business owner has to meet with prospective buyers, negotiating and in the process share financial information about the business with them about the price of the business. There can be many who may want to buy your business. Access the offers and since price is an important factor therefore weigh up the offers before selling your business.
Proof of finance
Ensure that the buyer is in a position to pay the capital required to buy out your business. Seeking proof of financial backing is important.
There are available different payment options for selling a business. As a seller you need to choose the tax efficient option while selling your business.
Tax issues to see while selling a business
Discuss with your accountant about various tax issues before selling your business.
The seller’s responsibilities and liabilities like employees, tax obligations, and outstanding debts if any need to be resolved prior to selling a business.
Warranties, Indemnities, Responsibilities to staff
Besides, the sellers of a business require adhering to warranties and indemnities. The business owner requires checking legal responsibilities to the employees prior selling the business. Other aspects in the selling process include the creation of written agreements for sale.