Article Summary: What to consider when selling your business | Business in Savannah

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Mon, 01/18/2016 - 8:56pmBy John Lientz

Note:  I've thrifted this article to key points and reformatted into bullets to ease reading - Eric Gall

Business owners become motivated to sell for many reasons.

No matter why, there are several actions to be taken to help make a transaction smooth.

Step one is to assemble a team to develop and execute a plan. Trusted advisors will include people who understand the history of your business including your:

• Accountant
• Legal counsel 
• Financial planner
• Business broker
• Banker
• Others

Selling a business can be like selling a home. If you’ve sold a house, it’s usually in the best shape it’s ever been while you try to sell it. Likewise, you should get your business “house” in order.  Make sure the following documents are available and cleaned up for review:

• Financial records and reports
• Invoices, deposit records and bank statements
• Customer, supplier and employment contracts
• Business, software and other licenses
• Processes and procedures
• Business legal structure and ownership agreements

Buyers like to see three to four successful years to demonstrate viability and sustainability of a business.

In addition to pre-sale considerations, bplan ahead for your post-sale life:

• How you will invest the proceeds for your long-term personal financial goals? 
• Are your estate planning documents in order? 
• Will you provide compensation from the sale of the business to employees? 
• Do you want a role in the company after the transaction as an employee?
• Are you willing to sign non-compete and non-solicitation agreements and step away from a business you have known intimately for years?

Beware of seller’s remorse. You will need to understand a buyer:

• Will not run your business as you did.
• Keep all of your employees.

You’ve invested a lot of time and energy into building a successful business.  Selling your business is a tremendous task. Early and careful planning will be worth the time, effort and expense.

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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com or my personal website at www.BuySellFLbiz.com.