Preparing to sell your business

Whatever reasons you may have for selling your business, while there may be benefits, there could be some disadvantages to consider.

Advantages of selling your business

Choosing to sell your business could bring the following benefits:

• If the economic conditions and market trends create high demand and attract potential buyers, you could sell your business at a high price.
• Selling your business could allow you to pursue other projects eg invest in another business or find work with an employer.
• Any profit from selling your business could allow you to pay off personal debts.
• The money you receive could fund your decision to take time off eg to spend more time with family or travel.
• If your business is in decline or you have financial difficulties, selling the business may provide you with a way out.

Disadvantages of selling your business

There could be potential challenges to selling your business, these may include:

• The process of negotiating the sale of your business could be lengthy and time-consuming.
• The legal costs of selling a business can be expensive.
• You could be required to sign a non-compete agreement which might limit your freedom in consulting with similar businesses or starting a new business in the same area within a given period.
• Planning to sell your business will affect any staff you may bring a degree of uncertainty - at the very least it could affect their morale.
• If your business is profitable, you could be giving up a lucrative revenue stream.