What to Do Before You Decide to Sell Your Small Business

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In this fluctuating economy, you might be wondering if you should sell your business. Whether or not to go forward with the complex sale process depends on a few key factors.

If you’re considering selling your growing businesses, here’s what to think about and what you need to know.

Making the Decision 

The first step and possibly the hardest is deciding whether you want to sell. In thinking about that question, think about why you want to sell. Because if you do decide to sell, the first question a buyer will have is: why are you selling?

Once you figure out why you are selling, the next question to answer for yourself is what is the most successful outcome? That may seem simple, “sell the business,” right? Consider the other aspects. For example, if you consider your business a part of your legacy, then a buyer who will treat your business like a car of spare parts does not align with a successful outcome for you.

Whatever your reason and definition for success, being prepared with those answers before you begin the process will help guide the decision-making process throughout. 

Figure Out How You’re Going To Sell

Once you’ve decided to sell, next think about how you will conduct the sale. Selling your business by yourself is possible. You’d take home more money in the long run and wouldn’t have to find people to hire. However, this is likely your first (and probably last) time selling a business. A team of advisors on both the business and personal sides is vital to aid in this complex process. 

Building Your Team 

Having trusted advisors will offer a wealth of specialized information you may not have. They could see pathways that value your business higher or catch an agreement that wouldn’t benefit you.  

• Your Business Team 

  • Your business team may include a 

    • Business advisor

    • Business broker or investment banker

    • Valuation expert 

    • Tax advisor

    • Transaction attorney

    • Accountant

  • Your personal finance team may include a

    • Financial advisor

    • Estate planning attorney

    • CPA/tax advisor 

Questions about selling

Have questions about selling your growing business? One of our business advisory experts can help. Contact us.