When you decide that you are ready to sell your business and your business is ready to have a new owner, the next question that must come to your mind is how to sell and how much part of your business you want to sell. You sell your business only once and you want to get the best out of the deal. That thought alone can lead to long sleepless nights. You need to know when the right time is; otherwise, your years of hard work may not get the value it deserves. To get the best value you should know about different alternatives of selling a business. There are a number of ways to sell your business, depending on the various aspects like size and type of the business, industry business is currently working in, whether you want to sell the whole business or just a part of it and many more.
When you decide that you want to sell your business, you usually look for another business in the same industry, who will acquire your business. That is one of the most obvious options. There are many marketplaces like Business for Sale BC, where you can find the right buyers for your business. However, there are also other options available:
- Private Equity Investors or Buyers
- Management Buyout or Employee Buyout (EBO) – Here either executive directors or employees purchase majority of shares in their own company possibly with the help of a venture capital investors or other moneylenders like banks.
- Private Investor or Private Investment Company
There are few different sale options. You can choose one option in the early stages of selling, depending upon the financial and legal circumstances of your business. This will save you time, money, and efforts. Given below are few options you can take:
- Partial Business Sale
In partials business sale, the business owner sells a major part of the business shares to an equity investor while keeping a minority share for himself. The equity investors may allow the seller to run the business. By holding a small percentage of shares in the business, seller continues to be a part of the business and it assures the current customers and suppliers that the business will continue to thrive in future.
- Full Business sale
You might want to sell your business as a whole and start over somewhere else. You will transfer the complete ownership to the buyer and the buyer will be completely free to make any changes in the operations or the structure of the business. If you are interested in selling your business, you can go to the marketplace called Business for Sale BC where you can get the best deals for your business.
- Full payment or phased payment
When you sell your business, you can receive the payment in two ways. Either you can get the complete payment all at once after the sale procedure is completed or you can accept payment in instalments. The buyer might want to pay in instalments, but it may put you at risk in case buyer is unable to pay future instalments. Your preference in payment method may influence buyer’s interest and the value they might offer for the business. To get more information about how you can sell your business, you can check out the marketplaces like Business for Sale BC.
- Asset Sales
Another thing you could do is that instead of selling your business, you can sale the assets of your business like machinery, patents, copyrights etc. This offer might attract the buyers who want the assets of the business, but not its liabilities or debts.