Selling a business is one of the most important decisions an owner will ever make. You have one chance to get this transaction right because there is no going back. This article discusses key issues that pertain to selling your business, based on my own real-world experiences as a CPA with clients who take the plunge. One phenomenon I’ve personally seen is “seller’s remorse” where the former owner of a profitable business feels regret and wishes he had held on to it.
Here are some major issues to consider before you sell your business:
Look Before You Leap
Business owners consider selling their business for many reasons including health or financial issues, a desire for more leisure time, or simply exhaustion from dealing with the challenges and burdens of running their business. But always remember that a profitable business is like a goose that lays golden eggs. The income generated by a typical profitable business is irreplaceable: A business owner who sells is unlikely to have residual after-tax funds that can be invested in a way that generates the same income the business produced.
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Photo Acknowledgements and Credits: Goose Photograph by ©Denis Nata | BigStock.com / Golden Eggs by ©Preto Perola/BigStock.com / Composition & Modifications by Shawn Hill | VASTmicro