Tips for Successfully Selling your Business

Selling a business is a major decision that often has the potential to leave entrepreneurs with significant financial freedom. In fact, in many cases, entrepreneurs start a business with the intention of selling it once they reach a certain valuation point. One only has to look at the recent sales of Instagram to Facebook ($1 billion) or Beats Audio to Apple ($3 billion) to see why selling a business can be an attractive proposition to many entrepreneurs. Of course, these billion-dollar examples represent a fraction of the kinds of mergers & acquisitions that regularly occur in the business marketplace. That being said, a deal worth a fraction of these sums could still put a hefty sum of life-changing money into an entrepreneur’s pocket.Fotolia_74847478_Subscription_Yearly_M-300x180

As a result, it is important for people who are considering selling their business to do so with the guidance of legal counsel that understands the legal issues that often arise in selling an existing venture. Below are four tips for entrepreneurs who are thinking of putting their business on the market.

  • Determine your goals – Of course, everyone who puts a business on the market is ultimately looking to make money. Some people, however, have a set amount that they feel that they need to obtain in order to make a sale worth it. For others, it is extremely important to stay involved with their “baby” after a sale has been made.
  • Have a plan for growth – Most parties that are interested in buying a business are doing so as an investment and want to know that their investment will produce some sort of return. Part of your sales pitch as an entrepreneur is to show your potential buyer that your existing business has significant growth potential.
  • Demonstrate scalability – This aspect of a business is inherently intertwined with growth. Investors need to see that they can take your idea and scale it up in a way that will drive profits and also that the operation could smoothly continue without your personal leadership and effort.
  • Hire professionals familiar with selling a business – Selling an existing business is often very complicated, and it is important to present the business you are selling in the best light. Professionals that are familiar with these types of transactions will ensure that your business is correctly valued and that your best interests are protected.

Contact a Silicon Valley mergers and acquisitions attorney today to retain legal counsel

Selling or acquiring an existing business can be a legally complicated matter fraught with potential pitfalls. As a result, it is important that any party to a merger, sale, or acquisition retain an attorney familiar with effectively structuring these kinds of transactions. The attorneys of Structure Law Group, LLP are experienced business lawyers who are committed to providing their clients with professional and solution-oriented legal counsel and representation. To schedule a meeting with one of our M&A attorneys, call our office today at 408-441-7500 or send us an email through our online contact form.

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