Selling your business is an important process that you want to think carefully about. We already give you the first tools. Because what exactly is the situation if you want to sell your company?
We tell you the most common reasons why you to sell company, what to consider and finally how to sell your business.
Reasons to sell company
There are countless reasons to sell your business. For example, if you cannot find a good successor, want a new challenge, simply want to stop with this company, or if potential buyers suddenly make an offer themselves.
It is important for you to determine your personal reasons for selling your business.
What should you consider when selling your business?
When selling a business, you need to prepare your business for sale. For example, someone else must also be able to really run the company – if you have all management and organizational tasks in your head, sales will not work. This way of working is in any case disastrous for your company in the long term.
In addition, your organization must be financially sound if you want to sell your company. For example, provide a sticky business model. The next step is to determine the value of your company – the valuation – and finding the perfect asking price. And then of course you have to find a buyer.
The buyer probably wants a due diligence investigation
A due diligence (or due diligence) investigation means that the buyer goes through your entire bookkeeping. The reason? He or she does not want to be surprised, for example because you still have a huge loan outstanding, or because you have dozens of lawsuits pending. So make sure you are honest as a selling entrepreneur.
How can you sell your business?
In the first form, an external person takes over the company. In the second case, the company is taken over by someone who is already in the company. In both cases, the buyer will manage the company.
You can also opt for an earn-out arrangement, in which part of the sales price depends on future performance. This arrangement is more often used with a Management Buy In.
There are several reasons and ways to sell your business. The most important thing is that you consider as well as possible why and how you want to sell your company. This way you increase the chance of a successful sale.