If you are considering retirement or have other challenges, choosing to sell your business is a very important decision that should not be taken lightly.
The first step in selling your business is to seek the help of a tax accountant and lawyer. They will tell you what will happen to your taxes and estate when you sell your business.
In this article, the experts at T2inc provide you with various tips to facilitate the process of selling your business and the steps to take.
1. Develop a succession plan to sell your business
To maximize your chances of selling your business, you need to establish a succession plan. This will allow you to better manage how you will transfer ownership of your business to the future buyer. It is possible to establish this plan even if you do not sell your business immediately. It will still allow you to prepare for the future.
This plan will be made up according to the following structure:
- Goals and objectives
- Decision making processes
- Formation of the enterprise
- Estate Planning
- Emergency and risk planning
- Business structure and transfer methods
- Business valuation
- Exit strategy
- Implementation and follow-up
It will help you make important decisions regarding the transfer of your business.
2. Determine the value of your business
Before you sell your business, it is important to determine its value. This includes several factors:
- A selling price of similar businesses in your area
- The total value of your current inventory
- The value of your physical assets and equipment
It is recommended that you hire a professional business appraiser, as they know how to use various methods to accurately estimate the market value of your business.
The buyer will also be able to assess the value of your business on his own thanks to your expected cash flow over the next few years. So remember to update your accounting records regularly.
3. Find a buyer
Finding a buyer can be a complex task filled with avoidable business mistakes. Start by sharing your decision to sell with your professional circle of acquaintances. You can also turn to a broker who specializes in business terminations and even contact the various people responsible for business mergers in your industry.
The more people you can find to buy your business, the more likely you are to increase its value or at least get a better price!
4. Dissolve your accounts
Selling a company or business may involve updating or closing your accounts before you leave the business. Each of the accounts has its own process and forms to fill out in order for them to be properly updated or closed.
It is therefore particularly important to be aware of the tax rules that exist when selling a business. To help you in this task, it is recommended to call upon the services of a chartered accountant. He or she could be of great help, as each account closure is different.
5. Conclude the sale of your business
Once the potential buyer has validated all the documents you have prepared for the sale of your business, you need to finalize this termination with the drafting of a contract.
For you to receive the money from the sale or to make sure that everything is in order from a legal point of view, it is recommended to hire a lawyer. This professional will help you draw up a proper contract to avoid potential legal problems.
To help you sell your business, trust T2inc
There are several procedures to follow in order to properly sell your business. It starts with determining a succession plan, assessing the value of your business, finding a buyer, dissolving your accounts and of course establishing a sales contract with the future buyer.
In order not to make any mistake, do not hesitate to contact the professionals at T2inc. They will take pleasure in helping you with all your accounting and legal needs.