After months, maybe years, of planning, you launched your new business. Since that day, you have increased revenues year over year, hired employees, found and possibly outgrown an office space, and built strong relationships with suppliers and customers. Now you are considering selling your business. Maybe you are ready to move on to a new opportunity, maybe you feel as though you cannot grow the business any further on your own, or perhaps you are planning a “someday” long-term exit strategy. Although you may be prepared to sell the business, is the business ready for sale? There are many key issues related to selling a business —with the goal of preparing your business in advance so that you can get the best value and make the transaction process as smooth as possible.
Having a history of accurate, comparable, and easily reviewable financials is one of the most important factors in getting a deal done quickly for a good price. Keeping the company’s records current and accurate as the business grows is important for all businesses. However, sometimes business owners forget, delay or are not aware that certain company records need to be updated or filed. Before the sale of a business, all company records should be reviewed and updated, including the incorporation documents and organizational documents (such as the bylaws or operating agreement).
Whether a business has created a new technology that differentiates it from its competitors or simply has a customer-friendly website and social media presence that draws traffic, nearly every business relies on some form of intellectual property as a foundation for its growth and success. Every business should have exclusive rights or licenses to all intellectual property that it relies on to operate. Another common mistake small businesses or startups make is overlooking the importance of maintaining relevant employee records. Many small business owners, in the flurry of early-stage growth, hire employees and offer raises, equity, and other benefits to key personnel on an ad-hoc basis or without proper forms of documentation. Although companies usually create some form of these employment documents over time, many employees have inconsistent, or non-existent, records of their hiring, job responsibilities, equity ownership, and benefits. Employee records should be routinely reviewed, particularly before the sale of a business, when a buyer will have to decide whether to retain, terminate or buy out the current employees.
When business owners are ready to sell, they may seek out multiple potential buyers and choose the best fit, or a potential buyer may come to the business owner with an unsolicited deal pitch. Regardless of how the potential buyer and business owner connect, it is important for the business owner to be comfortable with the buyer’s vision for the transaction and the future of the business. A business owner should not feel pressured into a deal too quickly or without fully understanding the terms of the transaction. The seller should feel comfortable with the buyer’s stated objectives and plan for the business after the transaction. To avoid this pressure or discomfort in the selling process, SA Capital Partners offers guidance through the planning process and sale of your business. With all of this in mind, an extra set, or team, of hands doesn’t sound too bad, right? Let us be your guide through the sale of your business and move on to your next venture with a good foot forward.
About SA Capital Partners: SA Capital Partners is an innovative financial services firm that specializes in mergers & acquisitions advisory and capital raising for lower middle market businesses. We aspire to give all the tools necessary to complete any transaction. SA Capital Partner’s financial services industry specialists provide comprehensive, integrated solutions to banking transactions. Our breadth of services and industry knowledge allow us to understand each client’s unique business needs. Our goal is to make all financial services available to every small business. Website: www.sacapitalpartnersllc.com Phone: (212)-235-2761 Email: info@sacapitalpartnersllc.com #sacapitalpartners #sacapital #sacapitalpartnersllc