Selling a business is a worthwhile endeavor, and with the right help you can get what it’s worth, possibly more. Of course, this transaction is not going to come without its challenges, just like any other business transaction out there. What can you expect? The following are some common challenges business owners face when they are determined to sell the business.
As a seller, you want to make the most money possible, but the buyer at the other end is trying to spend the least amount possible. This is where negotiations occur, which are often more successful when you have the assistance of an attorney. Watch out for low ballers. These are interested buyers who purposely offer you a lot less than the business is worth. Individuals who do this are hoping you’ll be desperate to sell and will take their low ball offer, but you typically shouldn’t. Chances are, there’s someone out there willing to pay more, but you might have to patiently wait for that person to come along.
While selling a business, many employees who work for that business are going to be on the edge of their seats. Some might quit and get a new job elsewhere because they fear their job security. Others might not perform well in the coming months because they suspect they’re just going to get fired with new ownership anyway.
One way to avoid these issues is to let your employees know what is going on.
Don’t leave your employees to find out from someone else that you’re selling the business. Many of these deals include a clause that requires the new owners to keep the current employees, at least for a certain period of time. Don’t lie or make promises that can’t be kept, but let your employees know and understand the terms of the sale so they don’t get too scared.
A Lack of Motivation
Because you know you’re going to sell your business, you might lose motivation to keep the business running as usual. This could be detrimental to the sale of the business because your income could start to suffer. If a buyer sees that there’s a decline in business, he or she may not offer or pay you as much as you would otherwise be able to get.
Selling your business could be something that makes you money and lowers your stress level. Because there are certain challenges that could arise, you might want to enlist the help of a professional. Contact a business lawyer today, similar to a business law lawyer at Bott & Associates, LTD, to get someone involved.