Selling a business by yourself can be challenging, and that’s why the team at Utah Business Consultants is here. Our business brokers will help you with every area of business exit planning and selling your business for a strong number, including helping you navigate a few important hurdles that you may have been unaware of.
We’re also here to help with the basics – we know many sellers are taking part in this process for the very first time, and we’re here to answer any questions you have about even the simplest areas involved. Speaking of questions, there are a few you should be asking yourself when it comes to a sale and certain negotiation areas. Let’s go over a few of these and why they matter for ensuring a simple, profitable business sale.
For starters, one of the first questions to ask yourself is the lowest price you’re willing to accept for your business in the sale. There are several areas of potential negotiations to prepare yourself for, and this is among the simplest – you don’t want to be caught unsure when you receive an offer on the business.
Not only should you have a general range you’re shooting for optimally, you should also have a “walk-away” number that you won’t drop below. This number will be based on an evaluation our pros can perform with you to determine a proper business value and the range of outcomes you’re prepared to accept.
In addition, you’ll want to spend a good chunk of time assessing the tax ramifications of any sale that goes through. Business sales may involve numerous areas of potential tax implications, from possible write-offs in certain areas to obvious changes in income and expenses based on the sale. The timing may also be important – whether the sale is completed in one tax year or another could make a big difference for some buyers or sellers.
In many cases, buyers will need to assume long-term or secured debt to complete the sale. While this may seem like only a tangentially related area for sellers, it can be very important for them as well, and you should keep an eye on this. For instance, good terms for a loan to your buyer may mean you can obtain a higher selling price when the deal goes through.
Down similar lines, there are situations where sellers themselves may finance the sale to the buyer, whether through an outright loan or some other arrangement. In this case, you’ll want to speak to our team about the proper interest rate to offer on any long-term debt.
For more on questions to ask yourself before selling a business, or to learn about any of our business valuation or exit planning services, speak to the staff at Utah Business Consultants today.