![]() ![]() Selling a business can be an emotional process. Potential buyers submit bids prior to auction deadlines, subject to short confirmatory due diligence, to outcompete other potential bidders. Many auctions for businesses are yielding multiple bidders and causing auction jumping. Don’t be afraid to consult a merger and acquisition advisor at this stage of the process. When comparing multiple potential bids, consider the bid price, how the buyer will use the business, and what the purchase terms are. The more buyers that are interested in your business, the higher the bidding price and sense of urgency to finalize the deal will be. A third party’s evaluation will add an extra layer of transparency and legitimacy to the asking price. To avoid bias, contract a third party to value your business. Don’t forget to add the venture’s long-term potential to the final value. Take inventory of your business and accurately identify its value to ensure the final purchase price is adequate. For example, if you feel that a sale would cost you the opportunity to work with a particular patent, add a sale provision into the contract allowing you to use the patent. If you can accurately identify opportunity costs, you might impact the sale negotiations in a positive way. Consider what you will be giving up by selling it, including growth opportunities, as well as how selling will impact your career or personal life. Evaluate opportunity cost against life goals.Įvery decision you make for your business comes with an opportunity cost. Since it can be difficult to view your business objectively, ask employees or customers how you can improve your business. Make sure you, your business and your team members are in the right state before finalizing a deal.Īdditionally, address any of your business’s weaknesses before negotiating a sale so you can increase its purchase price. Assess personal and business readiness.īefore selling, be sure you’re making the right decision and aren’t acting too rashly. If you plan on jumping into another venture, consider taking some personal time before doing so to see friends, family and colleagues, or take a vacation to your dream destination. Once it’s sold, it might feel like there’s a giant hole in your life where the business once was. The majority of entrepreneurs put an immense amount of time, effort and thought into their company. Consider your next act first.īefore even beginning the selling process, think about what you will do once your business’s sale is complete. Here’s what to keep in mind when selling your company. It is important to examine the factors that go into a sale before even putting the business on the market. ![]() For many entrepreneurs, it’s like selling a part of themselves. Growing a company from humble beginnings to the point where it commands a decent value takes time, effort and a bit of your soul. Selling a business is a significant step. ![]()
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