21
Oct
2021

Considerations and Checklists When Selling Your Business

The business industry has taken a huge hit in the last year. You might decide to sell your business and move on to a different career adventure. Selling your business can free up assets, release capital and provide you with a fresh start. You could sell the business to a family member or find a trade buyer to take over. You need to look at what you want to achieve from the sale and the timeline involved.

If you are looking to sell your business, here are a few things to consider.

Assets

Your company assets are major items of equipment owned by the business. It might be a computer system, complex machinery or company vehicles. You need to identify all of your assets and list their make, model and serial numbers. You could include these assets in the sale of your business.

Employment

Selling your business is a big move, and it can have a profound impact on your employees. You need to make a list of the current staff at your company and those who may still claim against the business. Look at employee benefits packages, sick pay, disciplinary records, staff responsibilities and much more.  You need to make sure your employees’ jobs are safe and secured throughout the sale.

Financial

You need to have a detailed record of the business’ finances. You need to consider cash flow forecasts, lending agreements, tax records, dividend history, and all company accounts. Your business finances should be filed and stored correctly so that this information is easy to access. If your finances are messy and unorganised, it can take a long time to sort all of them out. You may encounter a few problems if you have lost important tax records and documents.

Think about why you want to sell

You need to clarify why you are selling the business and what you will gain from it. This is the time to hire a professional advisor to value the business and identify any potential issues. You need to make your business look as appealing as possible to sell it to the next owner. An experienced business broker can help you sell the business and look at any potential offers with you. A business is a huge asset to sell, and you need to make sure you are getting it right.

You need to do your research and hire the appropriate people to help you sell your business.

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