3 Things You Need To Know When You Want To Sell A Business

Do you have a business you want to sell? The reasons for selling a business can be various: from entrepreneurs who open and develop businesses just to sell them to family businesses, misunderstandings between partners, etc. Whatever the reason you chose to sell a business, here are 5 things you need to keep in mind to be in line with important legal and logistical issues.

Do you have a business you want to sell? The reasons for selling a business can be various: from entrepreneurs who open and develop businesses just to sell them to family businesses, misunderstandings between partners, etc. Whatever the reason you chose to sell a business, here are 5 things you need to keep in mind to be in line with important legal and logistical issues.

The business management process must prepare the business for sale to maximize the gains from the transaction. In this process, the business history is taken into account, the strengths, but also the weak ones as well as the market situation at that moment.

Business Diagnosis 

Before selling a business, an analysis must be made to identify possible risks that may affect different areas: legal, financial, technical, etc. Most of the times this analysis is carried out by the buyer, in order to know better the business he intends to buy.

Transaction Structuring

Obviously, the interests of the seller and the buyer regarding the structuring of the transaction can be divergent in some places. Moreover, during the negotiations, situations may arise in which the initially agreed structure may change, so it is good to know what are, in general, the advantages and disadvantages of the business to be sold / bought.

Transaction Negotiation

At this point, the seller must pay attention to aspects such as: concluding a confidentiality agreement, granting or not the exclusivity of analysis and negotiation to the buyer, obtaining a share in the company (if desired)

In conclusion, before selling a business , the transaction must be prepared very well in advance, so that everything goes well for both parties.