Business lawyer Schiller Park Illinois | Selling Your small business

Step 1. Get a business valuation

You need to know the value of your business before you can sell it. A professional valuation of your business will help you determine the fair market value of your business. This will help you set a realistic price for the sale and ensure that you get the best return on your investment. 

A professional will evaluate the assets and liabilities of your business. They will look into the tangible assets such as equipment, furniture, vehicles, and other physical items. Cash flow from operations (CFO) is also part of the valuation. How much money does the business make each month? Investments and tax liabilities will also be considered. 

Step 2. Get Your Finances in order

The second step to selling your small business is getting your finances in order. You’ll need to have a good grasp on how much money you’re making, where it’s coming from, and how much profit you’re making. You should also prepare yourself for any audits that may happen during this process by keeping all of your tax returns organized as well as any other financial records that might be requested during an audit.

Hiring an accountant or a bookkeeper who can help you organize the necessary documents and make sure everything is up-to-date is important. This will make it easier for you to communicate the financial viability of the business to potential buyers. And, it will make it easier for your business lawyer Schiller Park Illinois to negotiate on your behalf and make sure you get fully compensated for your business.  

One way to successfully transition your business to a new owner is to sell it to a business partner or employee. They’re already familiar with the business and have an inherent interest. Where this kind of transaction can get tricky is the asking price. Someone you know may expect to get a “deal” from you and whether that’s something you’re willing to consider or not, you want to have pricing data available. If you’re selling your business to an acquaintance, a business valuation can be extremely helpful in guiding the asking price conversation.

Step 4. Negotiating the Sale

Once you’ve found a buyer, it’s time to negotiate. You will want to make sure that you and the buyer agree on a fair price for your business. You may also want to consider whether there are other terms of sale that would be important for you in this sale, such as what happens if one party doesn’t follow through on their end of things after closing or who will manage day-to-day operations during transition periods between selling and buying parties. 

If there is more than one interested party, consider negotiating with them separately since they may have different needs or expectations from their investment in your company. An experienced business lawyer Schiller Park Illinois will be able to conduct negotiations effectively and efficiently and ensure you get the best result. 

Once all parties have agreed upon terms for purchase, then all parties should sign an agreement detailing those terms. Depending on the complexity of your small business, negotiations may take several weeks or even months. 

As with any major transaction, there are many factors to consider when selling your company. The most important thing to keep in mind is that if you want to sell your business at its highest value, then it’s essential that you hire the right lawyer and advisor. They will ensure that you have an accurate valuation, that all your financials are in order, and that you have taken the proper steps to complete the sale. Contact us today for a free consultation and we will take care of the legal issues so you can move on to your next venture.