Factors to consider when selling your company

Making these considerations will ensure your business is in the right hands and you are rightly compensated for your efforts and dedication to growing the company.

What is the potential selling price?

When you first decide to sell your business, you may either overvalue or undervalue it. This could be because you are emotionally tied to the enterprise. To avoid getting into the trap of overvaluing your business and lacking any substantial interest from buyers, or undervaluing it and making less money than you should, you should bring a professional on board.

For instance, if you have a business for sale in Winnipeg, you can find a quality business broker or accountant to analyze your business's worth, and advise whether a share sale or an asset sale is the best option for you. If you accrued debt buying business equipment, for example, you may choose to sell your assets separately and recover your investment.

A tax accountant or experienced business broker will find effective ways to structure the sale and help you reduce any taxes you have to pay, consequently increasing your profit.

What will happen to your employees?

Your staff is an essential part of your business, and their welfare should be considered in the event of a sale. If you have had long-term employees working for you, you should consider securing their job security in the sale agreement.

Moreover, the staff is considered part of the company's assets. When selling the business, the time and resources used to train your employees should be considered an asset. In almost all circumstances, it is advised that a buyer retain the current staff.

What is your role in the business after selling it?

In most cases, business owners wish to sell the company and move onwards. However, you may be considering stepping aside from the day-to-day operations while still retaining a consultancy position to help with the transition.

Draw an agreement outlining your role in the business after the sale. In addition, after someone decides to buy a business from you, they will ask you to sign an agreement of noncompetition.

What assets are you overlooking?

Most business owners overlook certain assets when they decide to sell their business. Some of these assets include vendor relationships, customer lists, and seasoned employees. These assets could drive up the value of your business, and are often represented in the category of goodwill, which is in fact the driver of the company’s revenues and profits.

Additionally, you may consider a sale of certain assets in some cases instead of selling the business as a whole. For instance, if you own the space your business operates in, you may wish to consider retaining ownership of the premises and collecting rent from the new business owner.

Ultimately, there are numerous factors to consider with the sale of a business. As the owner, you may not understand everything or know how to go about the pedantic details. Fortunately, whether you are looking to sell a business or buy a business, Oconnor Business Brokers & Consultants can help you get the best value.



Ready to get started? Contact us today, and one of our experienced business brokers will be in touch with you as soon as possible.