Number one decision is to decide what's being sold. Be very clear on what you are actually selling are you selling the company, are you selling the trade name, the customer base, the business goodwill or property.
After you decide what you're selling, you need to know how to calculate what your business is worth. There's many techniques to determining the value, while paying particular attention to your specific industry.
Let's be straight, no one likes paying tax. The goal of tax planning is to understand what you need to take into consideration when factoring tax into selling your business. The sale needs to be structured to your circumstances in order to gain maximum tax advantage.
If you sell a business and no one is around to buy it, the valuation and preparation is irrelevant. There are many ways to market your business and get the word out that it's for sale.
Understand the combination of the open market, buyers you already have in mind, and weighing up the best buyer for your business. It's more than just about the price. Do the buyer's values match yours, for your business, your employees and your customers.
Negotiations can be formal and informal and start with the first meeting and end with the signing of contracts. They're a constant in this journey, and involve trust and respect.
So far, we've thought around our price, buyer and market but there a lot more we need to be aware of. Now it's time to complete our deep dive into the business itself. All things legal, commercial and financial are the focus here.
We're 7 steps in, this is what we've been working towards. Here we finalise the price, agree the terms, and resolve any issues. You started the process to sell your business, now let's sell it.