Small business owners who are on the market to sell their business are advised to discuss their business’s salability with industry experts. This is one of the most important steps for any business seller as it allows you to evaluate your business performance before putting it up for sale.
You have probably heard of stories of people encountering challenges in the selling process and saying something like, “I’m selling my business in Provo, but no one seems to be interested in buying it.”
As a rule of thumb, you have to make sure to show buyers that your business has been operating for a minimum of two years and provide the data on your profit for those years of operation.
Below, Utah Business Consultants share steps you need to take in selling your business to potential buyers:
Decide on the portions you will sell
Once you determine that your business is saleable, you need to decide whether you will sell all of it or just put up parts of the business for sale. Most often, large companies sell parts of their business as a strategy to acquire new businesses that will complement their existing units. This allows companies to focus on the divisions that represent the company’s vision and let go of the portions that are not part of the company’s core operations.
Decide on acceptable payment options
Set a minimum sale price for your business, so you can better decide among the many offers you may be receiving. Once you have set a minimum price, you have to decide on the payment terms that are acceptable to you. For example, a buyer wants to settle the payment through installments. What would be the arrangement in the schedule of payments and how would you structure it in a way that both of you will benefit.
Discuss tax implications with the buyer
Once you have a buyer for your business, take time to sit them down and discuss the tax implications of the sale. If you decide to sell all of the business and not just some of the assets, it becomes the buyer’s responsibility to tend to the liabilities that come with the business itself. Make this clear to the buyer so that he knows the potential liabilities that started from the time your business began operating. This prevents any misunderstanding between the buyer and the seller of the business and promotes an ideal working relationship if you decide to help manage the business after selling it.