In Connecticut, selling a business can involve a lot of complexity and, in some cases, emotion. Still, you can navigate the process with careful preparation and some essential information points for guidance.
When the time comes to put your business on the market, the following steps can reduce the stress of the transaction while helping to maximize the value of the transaction.
Set your goals
Determine why you would like to sell your business and sort the reasons by priority to keep you focused and aligned with your reasons for selling. Common goals include:
- Maximizing profit
- Having a quick, clean sale
- Ensuring the well-being of your employees
- Creating a lasting legacy
Determining and sorting your goals can help you focus on the most crucial negotiation outcomes.
Assemble your team
Selling your business may require expertise from a variety of professionals aside from your in-house legal and accounting personnel. For example, you can benefit from finding experienced business brokers to help you find potential buyers. You may need support from experienced transaction lawyers who understand business law and external accountants that specialize in business sales. They can help you prepare for the complexities of tax impacts and other issues to minimize errors and reduce the risk of financial problems related to the sale.
Emotionally prepare
Selling a business can involve a good deal of stress and may trigger upsetting emotions. Prepare yourself by making arrangements to help employees and, if needed, seek support from a mental health professional as you navigate difficult emotions.
Prepare your customer base
To enhance your company’s appeal to potential buyers, assess the profitability of your existing customers and seek to expand your client base. Some potential buyers may prefer to avoid issues like a significant portion of your business that comes from a few large customers. Work to settle all outstanding invoices so you can offer the company to buyers, knowing they will not need to chase invoice payments you did not collect.
Consider incentivizing employees
To avoid conflicts, remain transparent with employees and maintain open communication during the negotiations. If your employees are shareholders, consider offering sales bonuses, stock options or other incentives to keep them motivated and help them align their interests with a successful business sale.
Selling your business may stir up uncomfortable emotions. However, if you prepare strategically, you can ensure a smooth, successful transaction for yourself and the business.