It’s true for things as well as people. Everything and everyone’s
for sale. That’s true in both good and bad ways. But for today’s
purpose, I’m referring to the sale of your business. Anita Campbell
over at Small Business Trends blog answered a question from a reader regarding how to go about selling the family business. The answer is complete and well worth the read.
At some point, almost everyone will tire of the day-to-day grind and
yearn for retirement (or at least for a change of pace.) Whether
you’re an entrepreneur with some experience selling businesses someone
who is traveling this road for the first time, a broker will be a big
help (as Anita points out in the aforementioned article.)
Brokers will help you establish a fair price, help you understand
all the ins and outs of the buyer’s due diligence, help you with the
negotiations, and generally shepherd you through the whole process.
Now this help doesn’t come without a price. They often charge 8% - 15%
of the total transaction amount. That may sound like a lot of money
(and it could easily be in the hundreds of thousands of dollars,
depending on the size of the business,) but this is one area where it’s
easy to be “penny wise and dollar foolish.” If you don’t have
significant experience navigating these waters, this will be the best
money you ever spent.
You don’t do your own business taxes (do you?) Don’t try to sell
your company without the help of a professional. There’s so much you
don’t know — could never know — that it’s worth whatever it costs to
have a professional in your corner.
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