{"id":4655,"date":"2016-04-04T10:47:37","date_gmt":"2016-04-04T15:47:37","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/closing-a-business\/selling-a-business.html"},"modified":"2024-05-23T00:57:19","modified_gmt":"2024-05-23T05:57:19","slug":"selling-a-business","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/closing-a-business\/selling-a-business.html","title":{"rendered":"Selling a Business"},"content":{"rendered":"\n
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Selling a Business<\/h1>\n
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\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Amber Sheppard, Esq.<\/a>\n | Last reviewed\n
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Most entrepreneurs dream of taking a small business from startup to an eventual sale. However, small business owners need to prepare to sell their business. This includes gathering the proper documentation to set your asking price, an exit strategy, finding potential buyers, and finalizing the sale process.<\/p>\r\n

This article covers the basics of selling a business, including the timing, the importance of succession planning, business valuation methods, and other related topics small business owners need to know.<\/p>\r\n

Reasons To Sell a Small Business<\/h2>\r\n

Reasons for selling a business vary from person to person and industry to industry.<\/p>\r\n

Family members who were to take over the family business may decide they want to be something other than small business owners. Cash flow may hinder the current owner’s profits, who needs to sell. Bankruptcy could force the sale. The real estate market may have changed, and rent or mortgage is too high for the small business owner to afford.<\/p>\r\n

Ideally, a small business wants to sell when the economy is doing well and profits are high. When these conditions exist, the companies sell for a higher sale price.<\/p>\r\n

Preparation To Sell a Small Business<\/h2>\r\n

Before setting an asking price or organizing a strategy to sell your small business, you need a business valuation. The value of your business depends on your preparation.<\/p>\r\n

Gather Proper Financial Documents<\/h3>\r\n

Make sure you gather these documents so your CPA or a business appraiser can value your business correctly:<\/p>\r\n