When you decide to sell a business in Rochester, MN, it can be an extremely overwhelming experience, especially if it is a business you have personally built. The process of selling a business can be a complex and lengthy situation. There are several factors to consider in order to ensure you quickly sell the business and that you get the best price and terms for the business. Here are some tips to help you successfully sell a business.
Do You Really Want to Sell the Business?
First and foremost, it is essential that you make sure you really are 100% ready and willing to sell your business. It is common to be attached to a business, which can interfere with the selling process as well as possibly cause you to back out in the middle of the sale. In order to avoid wasting the time, money and energy involved when you sell a business, make sure you will not change your mind once the selling process has begun.
Hire an Appraiser
Although your business may be valuable, it may not have the value you think it does. Having a personal attachment to a business can interfere with the reality of the actual worth of the business, so hire a business broker. Prepare all of the necessary documents, such as the statement of income and an adjusted balance sheet. These documents will enable the appraiser to determine the actual value of your business.
Taxes and Lawyers
When you sell a business, the variables involved can be extremely complicated. The terms and the language of a business contract are far more complex and difficult to understand than what you would find in a contract for selling a home. An attorney will be able to help you understand and prepare a contract of sale. It is also important to understand the tax portion of selling your business. For example, you may need to pay taxes for partnership rights or stock interest.
The most important factor to remember when you decide to sell a business in Rochester, MN, is to not try to do it alone. A business broker, such as Sunbelt Midwest, is qualified to help businesses find buyers and buyers find businesses. A qualified broker educates you on the selling process, help establish a valid market value, screen buyers, market the business and work with your CPA and attorney to assist with negotiations and the overall closing process.
