How to Exit a Company Successfully
Many people will say, ?I want to sell my company?, and yet they have no idea the amount of legwork and research that must go into this transaction. Selling a business is hard work and demands that a team of professionals is on board. There are thousands of businesses for sale all over the world but only a handful will ever sell. The keys to exit a company with a successful sale are not so much in the asking price but in the health of the company and the financial reports that need to be up to date. Just as you would never leap into a pool without first looking for a landing place, you must never jump headfirst into a sale without first doing your due diligence. Not only is this a legal term but it is a practical piece of advice. Examine the health of your company and then proceed to?the next step.
From a legal position, there are many hurdles and bureaucracies that need to be handled before the sale of your business can take place. Issues associated with taxes and pensions must be addressed. You must take the time to have the business properly audited from top to bottom. Every account must be looked at and every penny must be accounted for in the company before exiting. In addition, there are tax issues that must be understood. Whether it is a shared sale or an asset sale, the tax implications are enormous and they must be met. This is why a knowledgeable attorney should be sought out. It is preferable to seek out a lawyer that has experience in handling acquisitions. If proper due diligence is not carried out it will only serve to hinder the sale, slow the sale, or it could cost the sale altogether.
Taxes are always a part of life and they are always a part of a business. There is no escaping this fact. Embracing the reality will make the transition much easier. Simply saying, ?I want to exit and sell my company?, will not make the tax collectors go away. As tax laws are ever changing this is another reason for you to seek out the help of a skilled tax lawyer as well as an accountant. This will also be the time when an accountancy review of the business should be handled as it will establish the baseline price of the business in the future.
When you exit a company?there could also be?implications on your retirement plans or pension plans. These laws and requirements are also changing every day and you need to have a properly trained associate that can lead you through this process. There are no simple answers and there is nothing ?sexy? about the process. Selling your business is hard work and it demands proper care and attention.
?I want to sell my company!? that is a great idea to have but there are practical implications that must be dealt with first. The best approach to take is to start your business with an end game in mind. Make yourself replaceable and make sure that you have a healthy business before you try to sell. Following through on this will make the process much less complicated and it could result in a much higher payout for you in the end.
Are you considering selling your business? We can help you. Contact us anytime at?http://www.newgatecapitalpartners.com/contact/