5 Things To Consider Before Selling Your Business in Burbank, California
Selling a business isn't easy. There's a lot of planning and paperwork involved. That's why it's important to stay organized while you're at it.
Additionally, selling your business also means you have to be ready to transfer everything—including permits and other documents—some of which are necessary to avoid future legal disputes.
You've got a lot more on your mind than simply finding someone to buy your company. Before you can let go of your business, there's a lot to liquidate, file, and process.
So, here's a brief guide to selling your business, as advised by prescreened Burbank Business Law Attorneys.
1. Have A Reason To Sell Your Business
A potential buyer will want to know why you're selling your business. By presenting a valid explanation, you may help the potential buyer make an informed decision.
It might be that your business has grown too quickly or become too big for you to handle. You can be faced with hefty taxes and production costs that you can no longer afford, so you decide to sell the business to someone who is willing to take them on.
Or, it could just be a change in personal goals. A few business owners are looking forward to being rid of the stress of running a business so they may pursue other interests. Selling the company can provide a change of lifestyle or new professional opportunities.
Whatever the case, the buyer needs to know the intent behind the sale. As you can see, the rationale for selling your business does not have to be revolutionary. All you have to do now is provide the potential buyer those reasons.
2. Compile Important Documents
You may be required to supply the following documentation when selling a business:
Tax returns
Clearance
List of equipment
Estimated inventory value
List of employees
List of clients
Leasing contract
Franchise agreements
Leased equipment
Loans and payment schedules
Any company, regardless of size, should be able to supply this information to potential buyers. To avoid giving out information that could be used against you, only provide financial details to serious potential buyers. A non-disclosure agreement can also be signed by a potential buyer.
If you need assistance gathering and listing all of the documentation necessary to complete the sale, contact a Burbank, CA Business Lawyer.
3. Evaluate And Compile
Look at the selling prices of similar businesses in your area to get an idea of how much yours is worth. When determining the value of your firm, it's vital to include both tangible and intangible assets.
A well-established business with intangible assets, such as:
Company's current position
Brand recognition
Business status
Customer trust
Customer service
Customer loyalty
Make sure the assessment is accurate. Of course, some bidders will try to persuade you to sell your company for a lower price, but if the valuation is accurate, you'll be able to easily justify the price.
When it comes to handling the sale of your business, take your time. Examine the proposals before accepting them, and make a counteroffer if required.
4. Hire A Broker
As previously said, selling your company requires a number of important stages and documentation. Finding a business broker to assist you is one way to help you get the most out of the process.
The following are some of the advantages of working with a business broker:
By dealing with potential buyers on your behalf, a broker can act as your agent and save you time.
Some buyers may prefer to communicate with a professional intermediary.
5. Hire A Burbank Business Law Attorney
Finding a broker isn't your only option for getting guidance from skilled people. You might also require assistance with the legal aspect of the situation.
A Burbank Business Lawyer can assist you with a variety of legal difficulties, including:
Looking through the evaluation of your business for potential buyers
Creating contracts for asset sales and transfers
Review documents before you sign them
Remember, if the sale is well-planned, you're less likely to face legal problems in the future. Make sure a prescreened Business Lawyer in Burbank, CA looks over your contracts and agreements for a smooth transaction.
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