Entrepreneurs living in Louisiana usually invest a tremendous amount of money, time and effort into developing their businesses. While many business owners plan to continue working at and developing their companies for a long time, others eventually decide that selling to somebody else is a good idea.
The reasons why somebody might sell a business are varied. In some cases, a business owner is ready to retire or forced to do so because of illness. If the owner does not have an heir who is interested in taking over the business, selling will be necessary. Similarly, owners may direct their attorneys to sell a business as part of an overall estate plan, with the proceeds being distributed among family members. In other cases, an entrepreneur may simply want to move on to new projects, including starting another business.
Just as starting a business can be a complex and risky process, the same is also true for selling a company. There are many factors to consider, including the need to conduct an appropriate valuation of the business. Owners should also think about what will happen to current employees and the management of other assets, including leases and real estate.
One option that entrepreneurs have when buying or selling a business is hiring a business broker. These professionals operate much like real estate brokers, except that a business broker represents business buyers or sellers. Typically, the broker takes 10% to 15% of the final sale as a commission. Therefore, it is important to carefully evaluate a broker’s credentials and experience before signing a contract.
Business owners and buyers may also benefit from speaking with an experienced attorney. A lawyer might be able to help review documentation, draft contracts and ensure that the client’s rights are protected throughout the sales process.