It’s Business, And It’s Personal

The challenges business owners face when selling their companies

On Behalf of | Jul 25, 2019 | Buying & Selling Businesses |

Many business owners in North Carolina and throughout the nation have dreams of selling their companies and using the money to live an elevated lifestyle. However, it is important to consider how and when to sell a company to maximize its sale price. It is also important to consider how to manage the money acquired in that transaction.

Ideally, business owners will make their company look good to buyers whether they plan to sell or not. This is because buyers routinely make unsolicited offers for companies that are performing well. Those who are planning to sell their companies should prepare financial statements that are free of personal expenses or loans to family members and friends. These statements should also try to adhere to Generally Accepted Accounting Principles. Selling a business generally requires arranging a team of professionals, such as an attorney, financial adviser and someone with an insurance background.

Individuals who want to sell their companies may want to discuss their plans with family members. Doing so can help everyone understand why the company is being sold and how the sale proceeds will be divided. Talking with family members or a therapist can also help entrepreneurs handle the emotions that can come with selling a company.

The sale of a business can be a challenging event to handle alone. Therefore, it might be worthwhile to sell a company with the help of an attorney. Legal counsel could help answer buyer questions, review an offer letter and assist in structuring the deal in the seller’s best interests. An attorney could even represent the seller in court before or after the sale closes if legal action is taken by any party interested in stopping the transaction.