While during a business’ inception a sale is rarely considered, we find that due to health, burn out, or unexpected success, a business owner’s road often ends with the sale of his/her company.
Businesses are built on the passion and hard work of their founder(s), and a sale should be handled sensitively. The following are some critical steps that business owners should take in order to prepare for and maximize the price of their business:
- Maintain accurate, detailed, and certified financial reporting that can be presented to a potential purchaser.
- Recast the financial statements of the company to show the actual profit potential of the business (do not cast them to minimize taxes, as is most commonly done).
- Review and solidify the company’s organizational documents, employment agreements, executive agreements and agreements with key vendors and customers.
- Develop the skills and relationships of the company’s management team with suppliers and customers to avoid the goodwill of the company being tied solely to the owner.
- Carefully hire a team of skilled professionals to advise on tax, liability and other issues that arise during the sales process.
Are you or is someone you know looking to sell a business? Make an appointment with us and we will assist and counsel you through the preparation and ultimate sale of your business.