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4 tips for selling your small business

On Behalf of | May 25, 2023 | Business Law |

There are plenty of reasons for New York business owners to sell their companies. However, the process is often a lengthy one that requires a number of steps for both the buyer and the seller. If you’re considering putting your business up for sale, there are some practical tips that you can keep in mind to make the process smoother and more profitable.

Establish your why

One of the first things that potential buyers will ask when considering making an offer on your business involves your motivation for selling. While some people choose to sell a business because it’s not profitable, others choose to because of retirement, illness, boredom and burnout. Be prepared to explain to potential buyers why you’re no longer interested in owning the business and keep in mind how your explanation could affect its selling price.

Invest in a business valuation

Licensed business appraisers provide valuations based on a number of factors. They study the business’ profits, expenses, projections and more to determine a fair asking price. Having an official business valuation on file provides credibility when potential buyers look at your asking price.

Use a broker

In the same way that you can sell your home on your own, you can sell your business without a broker. However, experts typically recommend working with a broker. Brokers typically have a network of people who want to buy businesses, which puts your company in front of more serious potential buyers.

Gather the documents

In the world of business and commercial law, documentation means everything. Make sure to have your business’s tax returns on file dating back three to five years. Additionally, create a list of equipment that you’re selling with the business, contacts who play an important role in the business, information about the lease and more.

Making the decision to sell your business is rarely an easy one. However, these steps can help alleviate some of the stress.

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