So you want to sell the company that you built from scratch!That’s great, but are you going to sleep at night?Here are a few tips you should consider when selling a company:
- Know what your business is worth. Compare your company to the industry, and the regional market share you possess. If you are the value of your business, you will have a hard time selling it for what it is worth.
- Make a liquidation plan. There are “asset sales” and “stock sales” of a corporation. Find out the difference and consult a financial advisor about which would be better.
- Value your company by its individual assets, first. This valuation will help you understand your tax picture. You should know this before you sign the contract to sell, or maybe before you accept an offer.
- Don’t warrant anything. Your financial statements are probably not audited, so don’t act like they are. If they are audited, let the CPA attest to its validity. Be careful of what assurances you make about your business.
Consult your financial advisor before making any decisions to sell.We specialize in helping you realize your dream.