Ask these questions - when you are ready to sell your business

By Sudarsan Pattabiraman (M&A Advisor)  | 510.944.5616 | sudarsan@upclinch.com

When selling a business, sellers typically focus on key aspects that ensure the best possible outcome for their sale. Here are some of the critical questions business sellers should ask their Advisors / Business Brokers:

1. Valuation & Pricing

   - How much is my business worth?

   - What factors will influence the final sale price?

   - Should I hire a professional to conduct a valuation?

   - What kind of offers can I expect based on current market conditions?

2. Timing of the Sale

   - Is now the right time to sell, considering market conditions?

   - What are the tax implications of selling now versus later?

   - How long does it typically take to sell a business in my industry?

3. Preparing for Sale

   - What steps should I take to make my business more attractive to buyers?

   - How do I organize my financials and operations for due diligence?

   - Should I continue investing in the business, or is it better to maintain the status quo?

4. Marketing the Business

   - How do I find the right buyer for my business?

   - Should I market my business publicly or keep the sale confidential?

   - Should I use a broker or sell the business independently?

5. Deal Structure & Negotiation

   - What types of deal structures (e.g., asset sale, stock sale, earnouts) are common?

   - How much of the sale price is likely to be upfront vs. contingent payments?

   - What are common terms and conditions negotiated in these deals?

6. Buyers' Financing

   - Will the buyer need financing, and how will this affect the deal?

   - What is the likelihood of a buyer obtaining financing in the current economic climate?

7. Post-Sale Considerations

   - Will I be required to stay on during the transition period?

   - How will the sale affect existing employees and customers?

   - What will happen to my brand and intellectual property after the sale?

8. Tax and Legal Implications

   - What are the tax consequences of selling my business?

   - How can I structure the sale to minimize taxes?

   - What legal issues should I be aware of during the transaction?

9. Due Diligence

   - What kind of information will buyers expect during due diligence?

   - How should I prepare for an in-depth analysis of my business operations, financials, and liabilities?

10. Maximizing Value

   - What can I do to maximize the value of my business before selling?

   - Should I consider strategic buyers, financial buyers, or competitors for the best deal?

Call Sudarsan (510.944.5616 | sudarsan@upclinch.com) if you would like to know about these aspects of your business sale. Each of these questions helps sellers clarify their priorities, understand the process, and set expectations for a successful sale.