The last few years have been incredibly tough on businesses and many business owners have found themselves in a lot of trouble. When times are hard, it’s important that you adapt and change.
In some cases, you may be able to protect your business during difficult periods, but if things are really hard, you may decide that it’s time for a change. If the business is causing you a lot of stress and you want to turn your hand to something different, it could be time to sell up. But before you do, you need to do your research because there are a number of different ways to sell a business. These are some of the things you need to consider.
Full Sale Or Partial Sale?
Selling your business in its entirety is the best way to go if you don’t want to be involved in the business anymore, but it’s also the most difficult approach. As well as making sure that you get fair market value for your business, which can be a lot of hard work, full sales take a long time. In fact, you could be tied into a vendor-financed deal for months after the business has been sold.
On the other hand, selling part of your business means that you keep an interest in it and this can allow you to come in as a shareholder or owner if things go well. You need to find out how shares work in a company if you want to go down this route. Alternatively, you can sell off the business assets or specific parts of the company. This is the best choice if you want to improve your finances but you still want to be involved in the business.
A third-party sale simply means selling your entire business to a private individual or company. This is a good option if you want to get rid of the business entirely but finding the right buyer can be a challenge.
Private Equity Sales
A private equity sale is the process of offering your business to another company or group. PE sales are usually offered to a small range of targeted buyers and they can be ideal for middle-sized businesses. However, it’s important that your business is ready for these types of dealings because a pre-pack may not be the best way forward.
If you want to get rid of only parts of your business, an asset sale is the best way forward. You can sell off all or some of the assets or a specific branch of the business, but you still maintain ownership of the company itself. This is a good option if you are struggling financially and you don’t want to take on the stress of running the whole business, but you don’t want to give it up altogether.
Finding the right way to sell your business is so important. Think about your finances, your lifestyle, and your overall goals so you can determine which sale process is right for you.
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