You conducted a lot of research, consulted a lot of experts and created a business plan when you decided to open your business in California.
Why should you be any less prepared when you decide to sell your business?
You shouldn’t. There’s much to do when you decide to retire, for example, and leave your business behind. It takes careful planning, too.
To start, you must figure out what your business is worth before putting it on the market. You can do that yourself if your business is very small or doesn’t have many tangible assets. For larger concerns, it is wise to engage the assistance of a professional business appraiser.
When you’re calculating the worth of your business, there is much to consider. Be sure to remember these assets and try to make an accurate valuation:
- Any real estate
- Inventory
- Intangible assets, such as your brand recognition, customer database, intellectual property and potential for future earnings.
Accurately value all property and real estate tied to your small business. This can include intangible assets like brand presence, intellectual property, customer information, and projection of future revenue.
There are special strategies when it comes to setting the price for the business, too, which considers projected revenue, total assets or comparison with other businesses that have sold recently.
Once you find a buyer, you need to execute a sales agreement that includes several details, including a list of inventory, assets and liabilities.
The entire process isn’t as easy as just signing a piece of paper and getting a check in return. There are many considerations, including those financial and legal. An attorney experienced in business law can help you complete the sale of your business and enjoy the next phase of your life.