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Business wanted - Are you ready to sell?
With the summer holidays over, are you contemplating selling the business
and having a change of pace?
Is it the lure of the beach or the promise
of a 'quick and easy' sale from that unsolicited offer you received
recently from a buyer's agent?
Many business owners
are tempted by what they see as an 'easy out' but he warns, owners
should never rush into the sale of their businesses as there are crucial financial
and emotional issues to consider.
Most business owners have spent a good part of their working lives building
up a successful enterprise and any thoughts of selling the business need to be
carefully
considered.
Unsolicited offers to purchase small and medium businesses are not the
selective offers they appear to be with similar offers often going to your competitors
as well.
Usually they have identified the industry as a growth area and are looking
to acquire an existing business as a cheap mode of entry.
Business owners should make sure they are not caught off-guard and always
remember 'quick' sales are not necessarily 'good' sales as business owners often get a
price which is less than market value due to lack of preparation for negotiations.
It is crucial for owners to maintain confidentiality during negotiations,
ensuring business-sensitive information is protected, and get a carefully drafted
sale contract which addresses issues such as ongoing warranties, product returns
and tax obligations.
If owners are seriously looking to sell their businesses, either to retire
or move into a different mode of employment, they need to look at the financial implications of any sale as well as their own personal goals and the emotional
effect this change will have on them and their families.
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