4 Things to Consider (other than price) When You’re Selling Your Business in Palm Beach

When most people are in the process of selling their business, they focus on one thing – the sales price of that business. That’s natural, as the price you sell your business for is often the most important aspect of the sale.

However, how much money someone pays for your business – and how much you get in your pocket as a result – is not the only aspect you need to keep in mind when you’re selling your business.

Here are four other items you should keep in mind before you finalize the sale.

1. What is the Future Plan for the Business?

You have put a lot of hard work into building your business, and you want your legacy to live on with the new owner even after you sell. That’s why it’s important to engage potential buyers to find out what their plan for the business will be once they take over.

While you probably won’t have any say in the direction the new owners take the business once you’ve sold, you might be able to play a part in the future plan for the business before the sale goes through.

2. What Will Happen with Your Employees?

Chances are your employees are very important to you. You may even consider some of your longer-term employees to be like family. That’s why it’s important to consider the future of your staff when you’re selling your business.

Much like the long-term future of the business itself, you probably won’t be able to play a huge part in the future of your employees, either. You may be able to secure a few key people, though. A lot of times, it is possible for you to have included in the business sale language that will specify that certain employees cannot be let go, without cause, for a certain amount of time following the deal.

3. What Will Be Your Future?

You may not be planning to retire immediately after you sell your business. You may instead plan to start a new venture. That’s why it’s important you understand what restrictions, if any, you will have once you sell your business.

Most business deals will have non-compete and non-solicitation clauses included in them. This would prevent you from starting a new company to compete with the one you just sold and from taking your old employees with you. These restrictions might last for a certain period of time or have no expiration date.

Make sure you understand what these restrictions will be, if any, so you can plan your professional future accordingly.

4. Know How You’re Going to Get Paid

The other major thing to consider when you’re selling your business is how and when you are going to get paid. Is the deal strictly cash? Is it a combination of cash and equity in the new company?

Maybe most importantly, when are you going to get your money? Is it coming to you in one lump sum at closing? Is it some money at closing and the rest at a pre-determined date? Is the total cash amount going to spread out into equal payments over a certain number of years?

All this is important for you to know. You don’t want to get your hopes up you’ll be buying an expensive vacation home right after the sale if you won’t be getting all of your money for five years, for example.

Keeping these four things in mind when you are planning to sell your business will make the entire experience before, during and after the completion of the deal that much more pleasant.

Sunbelt Business Brokers of West Palm Beach provides dedicated business brokerage services for all of your buying and selling needs. Whether you are an established business owner nearing retirement and looking to sell, or an ambitious entrepreneur seeking your next investment opportunity, there is no reason to look beyond Sunbelt Business Brokers. Visit us at 800 Village Square Crossing, Suite 216 Palm Beach Gardens, FL 33410 or contact us at (561) 832-9222. View available Businesses for sale in South Florida. 

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