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Common Challenges of Selling Your Business

Fostering a business venture takes incredible dedication and talent, but so does finding the right buyer for your enterprise. If you’re wondering how to sell your business fast while earning a maximum return on investment, you’ve come to the right place. The team at Ashley Capital Group is dedicated to getting you the best deal for your company, while eliminating undue stressors, like the ones mentioned below. 

Business Valuation

When you build a business up from the ground and commit countless hours of energy into helping it take it off, it becomes a priceless entity to you. Unfortunately, buyers don’t share the same sentiments. Setting the right price is one of the key factors business owners have to take into account. A price that is too high will deter potential buyers from considering the sale, while a price that is too low is self-sabotage for the seller. To truly understand the value of your business, hire an outside firm to perform a professional business valuation. 

Lacking a Team of Advisers

You’ll be doing yourself a disservice to eliminate necessary intermediaries and undertake the sales process yourself in an effort to save money. Professional advisers who work for you (and only you) have your best interests and the experience to get you the best deal structure to maximize your ROI. When constructing your comprehensive team of trusted advisers, make sure to include:

  • An attorney
  • An accountant
  • A business broker
  • A financial adviser
  • An insurance professional
  • A certified business appraiser

Deal Structuring

Deal structuring is a complicated process that outlines the terms of the transfer of ownership between the buyer and the seller. When negotiating a deal structure, it is crucial that both parties accept the terms set in the agreement, or the deal will ultimately fall apart. What’s a fair price for both the buyer and the seller? Is this an asset or stock sale? How will the buyer finance the purchase? These are just a few of the many questions both parties must clarify when structuring the sale. The deal structure should also be documented in the Letter of Intent before due diligence starts, lest you find this process drone on and on. 

Employee Insecurity

When employees work for an enterprise they trust, they have a sense of job and financial security. Finding out their workplace is being auctioned off rips away their sense of security and leaves them in a cloud of uncertainty. If key employees feel insecure about the change of ownership, they may go looking for new job opportunities or leverage to use during the closing proceedings. To avoid unnecessary trouble from such a situation, it’s important to keep your employees in the loop and their cooperation. If they feel like their voice is being heard, they will be more likely to make this transition as smooth as possible on their part. 

Keep Moving Forward

Once your business has found a new owner to move forward with, you are left only with a sudden onset of wealth and a realization that you must also keep moving forward. This is bittersweet, but it’s also a new beginning. Don’t sit around wasting away your new fortune; instead, find a new business venture to conquer and shoot for new entrepreneurial heights. 

If you’re looking to learn more about how to sell your business, contact an Ashley Capital Group team member today. Our experience in the financial industry and winning streaks in the M&A field ensure that nobody can provide you with a higher ROI than an Ashley Capital Group expert. 

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