The simple questions you should ask before you sell your business
Pretend that you own and run a small to medium-sized technology business. What happens when you decide that the market is finally ideal, and it is time to sell the company? No entrepreneur wants to be given a bad deal, or thrown out of a business that he or she built from the ground up. There are ways to ensure that if a technology merger or acquisition is possible, the most beneficial opportunity can be found.
"The selling or transfer of ownership of your business is one of the biggest decisions that you will make in your life," according to a recent Kansas-based, Wichita Eagle article.
It added that preparation period is crucial, and while it doesn't always need to take years, it is important that it is done correctly.
"This planning not only allows you to position your business where you can maximize your selling price, but may make it easier to sell with terms and conditions that are more favorable to you."
Additionally, the news source highlighted a few questions that entrepreneurs need to ask themselves before moving forward in any M&A activity:
- How have my sales been over the last few years?
- Does the business need me everyday in order to operate?
- Are all of my documents, books and records in order and up-to-date?
- How realistic are my expectations?
However, it is important to remember that there are many intricate factors that can affect a business' value. While some company leaders will be able to form a comprehensive view of the organization, working with professionals – attorneys, investment banking firms and accountants – can make the process run even more smoothly.
Regardless of whether an entrepreneur wants to retire, create another company or has another reason entirely for selling his or her technology company, having a strong team in place will ensure that nothing is overlooked.