How to Know if You Should Sell Your Business
You have a successful company that is making a profit by helping your customers. You have been approached by another organization with an offer to buy your product line and facility. You are questioning the amount they offer, and if it is fair for you. Here are a few points to follow to determine if you should be part of a business acquisition.
The Current Value Of Your Company
There are many times during the life of your company that you have to get a loan to pay for an expansion, in an emergency, or to get new equipment. When this happens, the financial institution will determine what your assets are worth so that they can decide if what you are requesting is reasonable. As you debate if you should participate in this business acquisition, take a look at the paperwork that you submitted the last time you asked for assistance from the bank. Compare that figure with the one that was offered to you. If your dollar amount is higher than theirs, you should counteroffer for more money.
The Licenses That You Own As a Business
There are many items to consider as you deliberate about selling your company. You have more than products or the building to offer in the deal. You also possess the designs for the items that you market to the public. You may also own technology that creates and assembles your inventory, as well as any software that you use within your office or to make your manufacturing more efficient. Analyze your assets and attempt to put a value on them. Compare them to what the buyer wants to purchase in the note if they are on the list. Once you find them, be sure that you agree with what is listed. If your number is bigger, renegotiate for more cash during the business acquisition.
How Knowledgeable Your Staff Is
When you sell your company, you will be offering more than just the products that you manufacture. The staff that you hired will also be involved in the transaction and the knowledge they possess adds a great deal of value. Look into the tenure that each person has with you. If you have a relatively new staff, the amount that you can ask for during the business acquisition will be low. However, employees that have been with you for years and know the secrets behind your organization can add to the worth of your company.