North Carolina business owners know it can be a lot of work to sell a company. For most, selling the enterprise is the among the most important transactions they’ll ever experience. Sellers are wise to engage a solid team of advisers to support and move the sale along.
In up to 50 percent of cases, the sale of a business is catalyzed or necessitated by crisis. A death, disability, legal dispute, divorce or other distress can require quick decisions, resulting in a stressful sales environment. Nearly half all business sales transactions fail for one of four reasons. The reasons are a lack of readiness on the part of the owner, a disparity between the asking price and the real market value of the business, disparate expectations and a lack of experience among the members of the seller’s advisory team.
Successful business sales require that the seller be ready to change roles and give up control. The business owner may have to secure a new source of income, for example, or may struggle to emotionally to leave a company he or she loves. The asking price should reflect the actual value of the business; many owners set prices too high because of the time and effort they’ve put into their endeavors.
Structuring a deal involves both financial and non-financial factors. The expectations of sellers and buyers should align or the deal may fail. Individuals who are putting together an advisory team may want to schedule a meeting with a lawyer who has experience with business sales and who can negotiate and prepare the appropriate documents.