How to Make the Most from the Sale of Your Business

How to Make the Most from the Sale of Your Business

If you are a small business owner, chances are that most of your personal net worth is tied up in your business. So even if the sale of your business is not on your radar anytime soon, there will come a day you will want to cash out and sell it at the best possible price.

Even if you plan to sell to partners or transfer to family members, there are some things you should do to ensure your investment is protected:

Build an investment as you build your company. Anyone who eventually buys your company will be looking for investment value, so pay attention in advance to how you can add value to your business. This starts with having a diversified management team, so the business does not just depend on you, and there are seasoned managers a new owner can count on to run the business. Building good customer relationships so you have a recurring source of revenue makes your company more valuable as well.

Get a valuation of your business. Hire a professional to provide a thorough valuation of your business at least a year prior to sale. This will give you time to improve areas which will increase the value before the company is sold .

Document your business plans and processes. A well-run company runs on written plans and processes. These are necessary not only to demonstrate good management practices, but also crucial to protect you from possible litigation. Be sure you have all agreements with employees, customers and vendors readily accessible and in writing and that employment rules are codified in an employee handbook.

Implement effective tax and asset protection strategies. Be sure your business structure is set up to provide you with the maximum tax benefits and asset protection strategies. If a large percentage of your own net worth is in the company, you will need the protection provided by an LLC or corporation.

Business owners seeking legal protection for their business interests should seek a qualified, competent advisor for assistance.   Contact one of the experienced Florida business attorneys at Jurado & Farshchian, P.L., at (305) 921-0440, or email us at info@jflawfirm.com.

 Share

The post How to Make the Most from the Sale of Your Business appeared first on Jurado & Farshchian, P.L. Business Lawyer, Real Estate Lawyer, Immigration Lawyer.