5 Myths About Selling a Business
May 17, 2021
5 Myths About Selling a Business
Selling a business isn’t easy, especially if you want to get top dollar. There are right and wrong ways to go about it, and unfortunately, too many people believe the myths below. Don’t be one of them. Read this blog post and then call us for advice on the best approach to selling your business.
Myth No. 1: I Don’t Need Help Selling My Business
Although you can sell your business without the help of an experienced business attorney, we don’t recommend it. Good attorneys like those at Counxel Legal Firm can provide a host of valuable advice, from general selling strategies to selling a business to a family member and negotiating asset purchase and non-compete agreements.
On the other hand, selling a business yourself could have several negative consequences, including:
– You will lose time. Selling a business requires a lot of effort, including developing a marketing plan, placing advertisements, vetting potential buyers, etc. An attorney can provide invaluable assistance with all of the necessary steps.
– You may lose money and/or your rights. Not only can an attorney help you get top dollar for your business, but he or she can also negotiate the final sale and critical related documents to ensure your rights are protected.
Myth No. 2: I Don’t Need Help Valuing My Business
Many small business owners don’t really know what their business is worth. Owners sometimes don’t do enough market research. In other situations, they may base their asking price on something completely unrelated to market value, such as how much money they want to save for retirement. An experienced attorney can help you value your business properly so you get every penny you deserve.
Timothy Coons and his team will conduct a thorough valuation, including an analysis of the current market, market trends, and your company’s potential for growth.
Myth No. 3: If I Can Sell a House, I Can Sell a Business
Selling a house and selling a business have little in common. First, many people can sell their house in a few weeks, whereas selling a business usually takes a lot longer – often a year or more – and is a lot more complicated. Considerable planning is involved, as well as other factors like staffing issues, documentation, etc. Just getting your company ready to sell can take months while you compile financial records, position the company, and perform other necessary tasks.
Moreover, while most people who sell a house don’t have to deal with the buyer after closing, someone who sells a business often has to spend months helping the new owner with the transition so that they are set up for success.
Myth No. 4: I Don’t Have to Worry About the Buyer’s Financing
This is one area where selling a business is similar to selling a house: the buyer’s financing matters. That’s because you want to do everything in your power to help the buyer access the financing they need to close the sale. A business attorney can help you accomplish this by demonstrating to the lender that the company will continue to perform well after the purchase. You also may have to finance part of the sale yourself to ensure that the deal goes through.
Myth No. 5: I Can Sell My Company For More Money in the Future
Although the timing is important, focus on the things whose timing you can control, like recurring income streams and the stability of your workforce. It’s not possible to predict the market with 100% accuracy, so avoid the temptation of thinking that next year will be a better time to sell. That said, advice from professionals can be useful in deciding exactly when to put your business on the market.
Contact Counxel Legal Firm
If you would like advice about selling a business, contact Counxel Legal Firm at 480-536-6122 or at email@example.com. While many attorneys have the stigma of being deal-killers, we come from a business background and is ready to make a deal happen in the best way possible for you. Our team of trusted attorneys will be sure to help you evaluate your risks and options while always keeping in mind your ultimate goal of getting a deal done.
This article is intended for informational purposes only and does not constitute legal advice for your specific situation. Use of and access to this article does not create an attorney-client relationship between you and Counxel Legal Firm. Please contact firstname.lastname@example.org or 480-536-6122 to request specific information for your situation.
*Conveniently located off the 101 Freeway and the US 60 in the middle of Phoenix, Scottsdale, Tempe, Chandler, Gilbert, Mesa, and Queen Creek!