Before selling a business, sellers should ask themselves some important questions. Here is an overview of questions to ask yourself before selling a business, according to an article published by Good Men Project, titled “7 Questions To Answer Before Selling Your Business”.
Question 1: Are you ready?
This is a very simple and powerful question. For example, your financial reports should be ready to show.
Question 2: What’s it worth?
You will need a professional business valuation to determine what your business is worth. A great deal goes into evaluating your business.
Question 3: How’s the health of my industry?
Honesty is key here. For example, if your industry is in a transition period, then it might be better to wait until a better time to sell.
Question 4: How long will it take?
Selling a business can take a long time. You may even have to stay on for a period of time and work with the new owner during a transition period.
Question 5: Who is my buyer?
Finding the right buyer will ensure that your deal will be finalized. You do not want to spend a lot of time with potential buyers that are not a good fit.
Question 6: Are you willing to finance part of the deal?
Question 7: What about balloon payments over time?
Think about how you want to get paid and how flexible you can be in terms of payment.
For many sellers, selling a business is the largest financial decision of their lives. Considering the enormity of the decision, having good advice is simply a must. EBIT Associates understands what it takes to sell a business. Working with EBIT is an efficient way to begin the process of selling your business. We can help you answer these questions and many more.