If you plan to sell your business in St Cloud MN, you need to create a solid plan of action. It is important to address all aspects. From the moment you decide to do so, to the actual selling process, you need to consider a variety of options. These range from choosing the right professional to handle the sale to preparing the various components of your business for your exit.
Planning in Advance
Selling your business should never be a last minute decision. If you want to exit gracefully with the full knowledge that everything and everyone is in good hands, you have to do so years in advance. In addition to compiling the various financial material e.g. valuation, tax data, employee material, profit margin, etc., you need to look at your specific options for selling the business. The decision you make will affect everyone you work with or for – including customers, suppliers and employees, and the position of the company in the community.
Several options exist to sell your business exist. You can choose one of several routes. These include the following:
- Competition: Talk to your competitors. Inquire whether they would be interested in acquiring it and on what terms.
- General Acquisition: Talk to lawyers and other business groups about your company being the target for a general acquisition
- Consolidation: If you know a consolidator in the St Cloud MN area, talk to him or her about this route
- Management Buyout (MBO) or Leveraged Management Buyout (LMBO): This allows the current management team to pool their resources (MBO) or the assets of the company (LMBO) to purchase the business
- Employee Share Ownership Plan (ESOP): This option will allow your employees to purchase the company
- Sale through a Business Broker: This option lets you permit someone else to handle the details of the sale’s process
Before you make a final and, sometimes irrevocable decision, make sure you understand completely what this will mean for your company or business. You need to look at the impact this decision will have on everyone involved, including you and your family. By carefully examining all your options, you can avoid the syndrome known as seller’s remorse.
Before You Sell Your Business
You are already aware of the traditional options. Those listed above provide you with ample choice. Rather than wind down your business and close it, look closely at the above viable options. Make sure you narrow them down. Do thorough research on what comprises each option. Be sure to give special attention to the potential impact the process will have on everyone involved in your St Cloud MN operation.
In order to arrive at a complete picture, contact and talk to at length to the potential buyers of your company. Make sure you seek and obtain the advice of your lawyer, a business broker and your employees. Only after you have sufficient data, should you make the decision on how to proceed to sell your business.
