Sell My Business: A Look At What An Entrepreneur Should Consider When Liquidating A Company
The various reasons an entrepreneur may consider selling a business are numerous but typically stem as a result of chasing new ventures or contemplating retirement. It may seem like a straightforward process, but it quickly becomes convoluted when issues arise that require the expertise of a knowledgeable professional. Here is a look at the top three things every entrepreneur should consider when they find themselves ready to liquidate a company through a small business acquisition.
Hire A Broker
How do I sell my business? It is a question that many business owners ask when circumstances in their lives no longer make it possible to manage the day-to-day responsibilities and propel a company towards a prosperous future. The first step is to hire a broker who will determine a fair listing price and ensure each stage of a merger transaction is done legally, which mitigates risk and prevents future liability.
Some prospective buyers will approach a seller about in-house financing options if they do not have the capital to pay cash for the purchase. Arrangements that include financing by the current owner usually consist of a significant upfront amount and a set of monthly payments for a predetermined length of time. Providing private funding gives the owner a substantial portion of the sale at the close of a transaction and regular payments that often serve to be a valuable source of steady income.
Company Held Liabilities
It is crucial to make a listing of any liabilities a company may currently hold that will not transfer to the new owner of the business. Typical debts include lines of credit or credit card balances that were used to fund the business’s day-to-day operations. An owner should have a plan to satisfy these debts before listing a company so they are left in a favorable financial position once a deal closes.
Selling a company doesn’t have to be stressful. Contact a merger and acquisition firm today and learn more about how a broker helps to streamline a transaction and, in some cases, reduce the amount of time it takes to receive a viable offer. With a little assistance, liquidating a business is a straightforward process that will provide entrepreneurs with the cash they need for other ventures.
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