Common Reasons to Consider Selling Your Business

selling your business, DuPage County business lawyerFor many people, owning and operating a small (or medium-sized) private business is the realization of a lifelong dream. Reaching one’s dreams, of course, does not happen without many years of hard work, focused research, and an attitude of perseverance during the difficult times. When you stop to think about how much time, talent, and treasure that you have invested in your venture, you could be forgiven for being hesitant to realize that your run with the company is nearing its end. There are a few things you should keep in mind that might be indications that you should consider selling your business.

Reason #1: You Are Losing Your Passion

When you first started your business, you probably woke up every morning excited to get to work. Building a successful business and satisfying customers were more than daily operations—they were ideals that drove and motivated you into working as hard as you could.

They say that if you love what you do, you will never work a day in your life. While this may not be exactly true, as many days certainly require hard work, things are certainly easier while your passion for your business is at its peak. As the years have passed, however, you might find that running your business feels more like a chore than ever before. If you notice that you are no longer as excited about your company as you once were, it is probably time to start thinking about how you will get out.

Reason #2: Too Big, Too Soon

Believe it or not, it is possible for a business to grow too much too fast. When your company was small and you had just a few people working for you, you might have been fully capable of running day-to-day operations as well as performing your “owner’s” duties. If the business has exploded, however, and now you are faced with serving more customers that you initially expected to serve, the scale of the business could be beyond your capabilities.

It is important to recognize and acknowledge your own limitations. In a case like this, you could even be looking at a tremendous financial opportunity. A fast-growing company is often extremely attractive to larger companies and investors who might be willing to give you top dollar for the business you have built. If you are interested in doing so, you might even be able to remain a part of the company in some capacity after the sale is completed.

Reason #3: An Economic Downturn

Some industries are built around annual business cycles. Others have cycles that are better measured in decades. Still other sectors explode in popularity all at once and then fade in obscurity—sometimes permanently. Business trends and advances in technology can have a direct impact on your company’s success and long-term profitability, and you may need to adapt or get out of the way. For example, the online shopping boom of the last few years has pushed many “brick-and-mortar” retailers to the brink of collapse. If the evolution of your industry has you seriously questioning your future, now could be the time to consider other options.

Call a Wheaton Business Lawyer

For more information about selling a business or advice about knowing when to sell, contact an experienced business law attorney in DuPage County. Call 630-665-2500 for a confidential consultation at Stock, Carlson, Oldfield & McGrath LLC today.

Sources:

https://www.businessinsider.com/millennials-are-killing-list-2017-8

https://www.entrepreneur.com/article/247990

Buying or Selling a Business? Avoid the Pitfalls and Secure a Favorable Deal

DuPage County business attorneysWhether you are buying or selling a business, there are factors that should be considered to ensure a favorable deal. Furthermore. It is also important that you know how to avoid potential pitfalls that could cost you money, cause legal complexities, or result in delays. Start off on the right foot by conducting thorough research and seeking assistance from a skilled legal professional.  

Selling Your Business

No matter the type of business you own, no matter the size, it critical that you take the time to find the right buyer to secure a favorable deal. In some cases, you may even want to ensure that your legacy and vision are preserved. And, in the weeks and months leading up to the sale, you will need to take some proactive steps to prepare your business for the transaction, including:

  • Understanding any tax and liability issues of the sale,
  • Determining what type of sale you prefer (asset or stock purchase),
  • Understanding why it is you want to sell your business,
  • Obtaining an accurate valuation for your business,
  • Creating a business succession plan, and
  • Determining who will finance the sale.

Buying a Business

There are a number of reasons that you might choose to purchase a business – maybe it is easier than starting your own from scratch, a way to expand your portfolio, or the time to expand. Whatever the reason, there are some important and critical considerations to make prior to the purchase. For example:

  • How much debt are you willing or able to assume?
  • Is the business you want to purchase worth the investment?
  • Are there any potential problems that could cause a loss or delay?
  • Will you need to downsize or hire more personnel once the takeover occurs?
  • Is the selling price fair and the valuation accurate?

Skilled Legal Assistance for Buyers and Sellers

Regardless of whether you are buying or selling a business, the DuPage County business lawyers at Stock, Carlson, Oldfield & McGrath LLC can help. Backed by more than 40 years of experience, we are fully committed to your best interest. Our attorneys will provide you with effective communication, proactive representation, and personalized attention during your business sale or purchase. Get the legal representation you deserve. Contact us at 630-665-2500 today.

Sources:
https://www.sba.gov/managing-business/closing-down-your-business/selling-your-business
http://www.cnbc.com/2016/05/23/7-questions-to-ask-before-buying-a-business.html