4 Interesting Things to Know About Selling Your Business

The decision to sell your business is often difficult. The sales process is often long and complex, and if you’re unprepared, it may be more of a challenge than you realize.

Whether you’re thinking about selling your company or you’ve already made up your mind, here are four things to consider before you start the process.

1. When Making a Sale Plan, Your Goals Matter

Any business broker will tell you that before you sell, you need an exit plan in place. However, even before you make an exit plan, you should take time to consider why you want to sell. 

Are you planning to retire? Hoping to start a new business venture? Just looking to invest the sale proceeds? Having a clear rationale makes it much easier to develop the right exit plan.

2. Having an Exit Team Is Important

Selling a business is far more complex than selling a home, car, or almost anything else. Before you begin, it’s wise to gather a team of experts:

• An attorney

• An accountant

• A business broker

These professionals can work together to maximize your chances of a profitable sale and reduce your risk of legal or tax complications down the line.

3. Timing Matters

You may already know that if you want your sale to be as profitable as possible, timing is crucial. However, when timing a sale, you should consider multiple factors:

• Market conditions

• When your business will reach peak value

• Whether you’re personally ready to sell

The right timing depends on more than just the market. Ideally, you should strike a balance between all three of these factors. Doing so can be a challenge, but business brokers can offer valuable advice and help you decide when the time is right to sell.

4. Your Emotional State May Impact the Sale More Than You Realize

Selling your business might seem like a mathematically driven process. Your goal is to find the right buyer, secure the highest purchase price you reasonably can, and put the proceeds toward your next phase in life.

The reality is often far more complex. Most business owners have at least some emotional attachment to their companies. When you’ve spent years growing a business, it’s hard not to.

However, if you aren’t careful, your emotional connection to your company could get in the way of a sale. Even when they want to sell, some business owners struggle to relinquish control. Others become so focused on finding the perfect new owner that they pass up excellent offers.

Complete emotional detachment from your business is often impossible, but when you’re mindful of your emotional state, it becomes easier to make sure your feelings aren’t controlling the sales process.

Ready to Sell Your Business?

Selling your business isn’t something you should rush into. Taking the time to consider your goals, build your exit team, and check in with how you’re feeling can all help you prepare.

Fortunately, you don’t have to go through the sale process (or even the process of preparing for a sale) alone. When you have a competent business broker by your side, you can navigate this challenging experience with confidence.