New Jersey Business Brokers: Article About Preparing To Sell Your Business
Once you make the commitment to sell your business, you may find that time starts moving too quickly. Rather than scrambling to provide the information buyers are looking for, prepare in advance by following a few simple steps. One of the best ways to ensure all of your bases are covered is to find a professional business broker who understands your priorities. Get started by calling your New Jersey business brokers for help.
Among the many decisions involved in selling a company is whether to keep it confidential or to announce your intentions to coworkers and the competition. Consider the possible drawbacks and advantages of both scenarios and discuss your options with your business broker. You may determine that keeping your intentions private improves your chances of getting a good price for your company.
Take an account of all the tangible and intangible assets associated with your business before settling on an asking price. Often, intangibles such as good will, a trustworthy brand and good community relations add as much value to your overall package as the machinery or office equipment you own. Discuss each asset with your business brokers so that they have a complete concept of your offerings.
It is wise to explore the tax implications of selling your business prior to listing it with a broker.
The business brokers from Selby Associates of New Jersey would be happy to answer any question you have about business advisory services or buying a business.
Your accountant can advise you on the specifics. In general, an asset sale and an entity sale have different tax implications. When you sell assets but retain interest in an LLC or corporation, you can claim depreciation to offset the associated taxes. Selling as an entity allows you to benefit from lower, long-term capital gains tax rates.
Some practical steps you can take to improve the curb appeal of your company include some financial house cleaning. Take care of any outstanding balances you have with your suppliers so that potential purchasers do not have to assume that liability. By keeping your plans confidential, you are able to determine your own payoff schedule without panicky vendors calling in your debts.
Clear up any legal issues that could hinder your sale. From a small claims lawsuit to a patent infringement case, unresolved legal issues may effectively scare off prospective buyers before they have the chance to give your business the consideration it deserves. Don't plan to use proceeds from the sale to settle an outstanding legal claim because this unresolved issue could prevent a sale from happening.
Your business broker will help you see that everything is in place to effectively market your company and complete the sale. You can do your part by researching your options and making sure that all of your loose ends are tied up in a neatly presentable package.