The process of selling a company

| Apr 28, 2020 | Firm News

Ideally, business owners in Connecticut will start to plan the sale of their companies as far in advance as possible. Doing so minimizes the chances that the deal will be impacted by an illness or other factors that they cannot control. In most cases, it will take about a year to complete all of the steps necessary to facilitate the transaction. The first step in the journey to sell a business is to ensure that it is ready to be put on the market.

Company owners should make sure that they have a solid business plan and key employees in place. They should also have accounting, sales and other systems in place that will make the company easier for a buyer to run. It is a good idea to have buildings, land and other assets appraised if they are going to be part of a deal.

Knowing how much assets are worth can help a business owner put a reasonable price tag on his or her organization. In addition to getting assets appraised, a business should compile a series of audited financial statements. At a minimum, these records should be compiled by an independent accountant to give a buyer confidence that they are accurate. To get the most for the company, it may be necessary to finance the deal or come up with other flexible payment options.

Individuals who are looking to sell their companies may want to work with a business law attorney. Doing so may help them understand how to structure the deal to maximize the chances of obtaining regulatory approval. The structure of a deal might also impact how much a buyer pays for a business as well as how much in local, state and federal taxes a buyer might have to pay.