Thousands of companies are sold every year. Most entrepreneurs who have to deal with this have not yet had any experience with it. That is why good preparation is very important. The tips below will hopefully help entrepreneurs who want to sell their company on the right track. 1. Selling a business requires great care. Determining the right time to sell can have a major impact on the final sales price. Selling under pressure will negatively affect the selling price. 2. Those who want to dispose of their company must take measures years in advance. Time is needed to build suitable legal, fiscal and organizational structures. If it is a family business, then business and private parts (for example a house above the business) must be strictly separated. With all this, it is almost impossible to make proper preparations without calling in an advisor. 3. If the seller enters into negotiations with a potential buyer, he would do well to find out what the buyer's motives are. Expectations about the value of the company should be realistic, so emotional aspects (which almost always influence the seller's thoughts) should be kept in the background as much as possible. The seller must also determine in advance how far he wants to go during the negotiations. The desired involvement after transfer is important here. 4. If one wants to engage consultants - almost inevitably - then several quotes must be requested. The ultimately elected counselor does not make any decisions. The seller does that himself. Clear agreements are also made with the consultant (in writing) about the remuneration for the work performed. Open ended calculations are not acceptable. 5. It is best for the seller to use different channels when looking for potential buyers. In addition to the accountant and the bank, it is wise to consult the Business Exchange of the Chamber of Commerce. To keep the negotiation manageable, the seller must limit the number of candidates to three. During the negotiation, no negative information about the company should be withheld. A confidentiality agreement limits the risk of information being passed on to third parties. 6. Determining the value of a company is difficult. There is no standard method for this. Profit and loss data should be combined with emotional elements such as goodwill. In the negotiation process, a price is finally agreed upon.
7. The seller must be well informed about the buyer. He should know whether he has managed similar companies before and, if so, what results he has achieved. Based on information that can be obtained from the buyer's customers and suppliers, the seller gets a good picture of the other party. The financial possibilities of the buyer must also be checked. 8. If agreement has been almost reached, the seller must inform all parties involved within and outside his company about the new situation as soon as possible. This prevents demotivation and economic damage. 9. Once the sale has been completed, the seller must distance himself from the company. He must give the buyer the space to implement changes that are important to the company.
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