If you are baffled about how to sale your business, then this can be a good place to start. Have this thought ever struck your mind. At the back of your mind, the question that might be always haunting you is how much can you get for the business.
The answer to this question depends on how well you have planned it, as there are booby traps. Here we will come to know about some basic booby traps that will not only impact the sale price, but also whether can sell the business anyhow.
The first thing we have to figure out is just precisely what you are vending. Are you a sole proprietor and have all the assets and liabilities owned by you? Or else is it a partnership and there are partners involved with a financial interest. Or else is it a private limited company with numerous shareholders? It is also possible that you are thinking about selling your public limited company. In every scenario, there are problems to address from the outset which may prevent a lucrative deal and turn off the purchaser without even looking back.
If you are thinking about how to sale a business as a sole trader, then you have to be mindful about implied warranties. These may give rise to undocumented assumptions that the buyers might be making while purchasing the business. One apparent thought is that the business may still work when the owner has sold up and left.
If this is not the situation, then in a specific scenario the buyer of the business may claim the complete value of the deal from the seller personally, while still holding on the business. Good preparation is always vital.
