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Steps in Selling a Small Business

| Oct 13, 2019 | Buying Or Selling A Business |

Entrepreneurs in Louisiana may develop their businesses to a point that they are thinking about selling to an outside buyer or a larger company. For some startup founders, selling the company is a goal of the project from the beginning, while others may be convinced to sell due to an appealing offer for a buyout. However, it is important for business owners to plan the sale of their business, especially if they want to achieve maximum market value for their company. While the process seems straightforward, there are some complications and hurdles to watch out for when people consider selling their businesses.

One of the most important parts of buying or selling a business is determining the proper market value for the company. This can establish a baseline for a business owner to understand the negotiation process. If a company wants to spread the word that it is for sale, this type of ballpark figure can help other parties to determine if they are interested. Of course, some companies may make larger or smaller offers, depending on whether they trust the valuation presented or have their own reasons to highly value a particular piece of technology or another component of the company.

Buyers will want to review the financial health of the company before completing a sale. They will usually want to review financial records and other key documents in order to verify the valuation of the company. When the sale of intellectual property is a major part of the deal, other forms of review may also be conducted. This can also involve confidentiality agreements to protect a company’s data.

Buying or selling a business can also involve working with professional assistance to protect the business owner’s interests. An attorney can help entrepreneurs to negotiate confidentiality agreements and fair sales contracts with potential buyers.