• Thu, Feb 16, 2023
  • What are the primary challenges when selling a business?
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  • Click here for a link to the full article by James Cook, published in Business Leader on February 9, 2023.

    The excitement of selling a business often comes from anticipating the financial rewards and stems from a sense of accomplishment and the satisfaction of having built something of value. However, the process of selling a business has its challenges. 

    Knowing The Right Time

    Knowing the right time to sell a small business is likely the most significant challenge for many small business owners due to the many factors to consider...When it comes to the timeline of selling your business, I recommend you do everything you can to build value before selling to help you know that it is the right time. 

    Parting With Something You’ve Built

    As a small business owner, you pour your heart and soul into building your business from the ground up. As a result, there is a strong emotional connection to your business...reframing your thinking when selling is essential, you have worked hard and built something valuable, and you deserve to be rewarded.

    Limited Access To Capital

    Generating more capital for your business before approaching the sales process will help you get a better return on your investment. Whether you go through a private investor or bank, gaining access to more capital will help you reinvest into your business and grow it to the point of being more attractive to buyers.

    Tax Issues and Complications

    Small business owners are well-versed in their own taxes, but selling a business brings new challenges. To best take advantage of taxes when selling your business, the planning process for your tax situation should begin as early as possible, even years before selling if possible.

    Finding Buyers

    To connect with the right buyer, I recommend joining relevant professional groups and associations and networking with other like-minded individuals. 

    Working with a professional business broker is the most important factor in a successful business sale. Brokers can assist with every level of selling your business... I recommend reaching out to a business broker for assistance as soon as you decide selling is something you’re interested in.

    Interested in selling your business? Let's discuss.
    Steve Niehaus, MBA, CM&AP, CBI, M&AMI
    [email protected]
    239.565.3171