How to Sell a Company
It is inevitable that after sometime you are going to exit your business. For whatever reason, the ultimate question is whether or not you or your business will be ready.
According to survey, most private businesses are not transferred to family or partners. Majority of them are planning to sell their company.
As a business owner, this might be sooner than you expected. Don’t ever make the mistake of selling your business prematurely or much later because there are times when it is not ready for sale. There are several reasons why businessmen sell their company. Other than retirement issue, reasons include burn out, health issue, death, divorce, loss of market share and partner disputes.
There are times that business owners don’t take care of their business. They don’t hire someone to manage their business after they are gone. They don’t keep their business in shape that is why it is hard to sell. They don’t really care about the possibility of business sale. Unfortunately, there are some unfortunate events that are beyond your control. The best idea is to plan now. With a planned sale, it allows you to put goals and objective in certain timetable. It is the time where you can identify potential buyer. It is best if you could understand why buyers want to buy your company. Just in case, there are problems, you may be able to resolve it. It is advisable that you know the worth of your business early on. This will give you a chance to increase it value.
It is best if you can record all sales. There are times when people find ways to minimize taxes. When you are thinking about selling your business, a tax collector might be your best friend in the process. Income taxes can be a great investment for the coming year especially when you are planning to sell your business. Paying income tax can prove to the buyer that your operations are profitable over the past years. Nobody wants to pay tax but this is worth it.
It is best to erase the mingling of assets that are related to business and non business. There is a practice among companies that business assets and expense are joined together with personal asset and expenses. The cost of maintaining these assets are seen as expenses in business operation. If you are a wise business owner then you are able to separate business assets from personal ones before selling your company. Doing so will make it much easier to measure the power of your business. It is never too late to separate the two because, remember that the leaner and productive your business is, the more money it is worth.
It is best to give your business a regular check up. Treat your business as if it belongs to somebody else. There are problems that you can discover. Spend time to fix it and you will reap the fruit of gaining more company value.
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