Every entrepreneur speculates about disposing his/her enterprise at some point in time. Major reasons pushing an owner to get rid of his commercial organization include personal exhaustion, knowledge of having reached a peak, medical problems, strong buyer interest, an unstable economy, interest in a different business opportunity or upcoming franchise opportunities, or sometimes feelings in the business owner of being ready for new challenges or even retirement.
The sale of a commercial enterprise is generally not a sale of a single asset. In fact, in such a sale, all the assets or possessions of a commercial entity like its building, vehicles, real estate, computers, office furniture and other fixtures are sold. In order to determine the gain or loss of each sale, each asset is generally sold independently.
Every sale necessitates the drafting of a business sale agreement fulfilling all statutory requirements. The agreement for sale should enumerate the rights and liabilities of both the vendor and the purchaser and must fulfill all statutory requirements. Preparation of a document for a business sale is a primary step in this endeavor. There are some more important steps that you need to ensure before buying or selling a business unit. They are:
- valuing the company,
- obtaining tax advice,
- doing adequate market research,
- checking out for initial offers,
- negotiating with the seller,
- having in place a sale and purchase agreement,
- fulfilling due diligence, and
- implementing the sale.
Whatever the reasons behind a sale of business, one would agree that a company making a profit has more value. That being said, even a commercial organization that is not making any profit has some value. In order to understand how profitable a business is, it is better to utilize the services of an independent and impartial valuation firm. Proper valuation will help facilitate sale at a reasonable and fair price, under just terms, and in the owner's paramount interest.
For proper valuation when you sell a business, one must know:
- 1. Selling prices of similar entities sold in the previous year or two;
- 2. Important value drivers for businesses in the industry;
- 3. Business brokers focusing on particular areas of commerce; and
- 4. Earnings before interest, taxes, depreciation and amortization.
When you sell a company, keeping the sale confidential is necessary for maintaining stability within the company. Confidentiality helps to prevent panic about job security among the employees. Additionally, confidentiality eases and simplifies the transaction between buyer and seller, and engaging a broker is the ideal way to ensure and sustain confidentiality.
Technology has influenced all facets of our life today and a commercial sale is no exception. There are many popular websites that aid you when you sell or buy business. Both business buyers and sellers, whether looking to sell or buy a business- can use the services of such sites. Such sites provide platforms for selling or buying small to mid- size businesses. These sites provide a wide range of business opportunities and business services. The sites are immensely helpful to business buyers, especially as they also provide opportunities within a franchise for sale. If you are in the market looking to buy a company/franchise, these websites have useful listings of businesses for sale that might include franchises for sale, convenience stores for sale, gas stations for sale, restaurants for sale, dry cleaners' stores for sale, or even a vending machine for sale.
These sites also offer small businesses for sale or even a company for sale. Most of the sites are generally customer friendly. Therefore, if you are looking for a business for sale by owner, or to sell your business for a great price within a reasonable time period, putting up your business for sale on the Internet might get you the best results.