Tips for Preparing to Sell Your Company
Are you doing all you can to improve your company’s value leading up to the sale of your business? You’ve likely spent years watching your company’s gross income, expenses and net profit, but is that enough to maximize your company’s value?
Following is a checklist to help ensure nothing slips through the cracks as you prepare to sell your business.
- Update the buy-sell agreement to protect all of the company’s stockholders.
- Keep up-to-date corporate minutes.
- Consider likely candidates to take over the business. Will you transfer the company to one of your children or a key employee, or will you sell it to someone else in the industry?
- Consider ways to protect your retirement income.
- Implement strategies to protect your spouse, children and employees following the sale.
- Establish strategies for minimizing income taxes following the sale.
- Work with your financial advisor, corporate attorney and accountant to put together a transition plan.
- If any of your children will receive stock in the transfer, make sure they are mentally prepared to handle their position and job description.
- Ensure your company is as financially strong as possible.
- Ensure that the company’s senior employees understand how the transition will take place and that they are important to the success of the business going forward.
- Work with an experienced professional to conduct a business valuation. The valuation of the company’s shares will be important for gifting purposes, and it can be used to update the buy-sell agreement, which all stockholders must sign.
