101: Selling Your Company
It may be a better time to sell your business now than it was at this time last year. The process doesn't have to be arduous or lengthy, and if planned correctly, can allow for a smooth transition for your employees and an efficient and streamlined exit for you, the owner. Here are three things to keep in mind if you're putting your company up for sale:
Treat employees with respect. Always tell employees about the potential sale individually, never together — or worse — allow them to hear from someone outside the company, says an article on NetPlaces.com by Gary McClain and Deborah S. Romaine. "Although a group meeting might be easier for you, it could be very difficult for people who react emotionally to the news," the article states. It's disconcerting for many to hear that their familiar surroundings are changing.
Do your homework. Setting a realistic price is of utmost importance, writes Mike Handelsman in an article at Enterpreneur.com. Aiming too low means you lose money, but pricing too high can lead to a lengthy and complex process. Look at similar businesses and what they've sold for, he said. "Websites like BizBuySell.com and BizQuest.com allow you to search for similar listings based on factors such as industry, size and location."
Be sure the money is right for what's next. Decide what you want to do after the sale and how much it will cost to finance. Jack Lyons of SmallBusinessDelivered.com suggests consulting with your financial advisor first, to be sure you get what you need, after taxes, from the sale. "Doing so will prevent a false start if the sale of your company is not likely to generate the proceeds you require and you find this out at a later date," he writes.
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