For whatever reason, you have decided that it is time to sell your business in California.
You have conducted some basic research and, rightfully so, decided that you need some help in brokering your business sale in California. Here is the thing: if it were easy to sell a business in California, everyone would do it. But it isn’t. Several factors should be considered before attempting to sell your business successfully.
Perhaps your real estate agent or a friend who has sold their business? They may be able to help, but when it comes time to sell, you need to hire a business broker in California. Here are some of the basic reasons why.
The Timing is Right
How do you know when it is the right time to list or sell your business?
The value of your business and the likelihood of being able to sell it vary depending on the time of year, market conditions, and fluctuations within your industry. A business broker will be aware of these changes and can provide you with the best advice on when to value and sell your business in California.
How Much is It Worth?
Mergers and Acquisitions require a team of professionals for your sale to be genuinely successful. You will need the CPA on your team to evaluate the true worth of your business, encompassing your tangible assets, the value of your client base, tax liability, annual expenses, and both the current and potential value of your stock.
These factors will all contribute to the value of your business when you sell it in California. Once you have determined the value of your business and received a letter of intent from the buyer, additional decisions must be made.
How Should I Structure the Sale?
There are several different ways to structure a business sale in California, ranging from a simple Asset Purchase Agreement (APA) to a stock sale that encompasses payables, cash, receivables, and assets, as well as successor liability attached to the company.
A skilled business broker, such as Andrew Rogerson, with extensive experience in brokering business sales in California and a proven track record, can help you navigate these choices and find the best option for your situation.
Andrew Rogerson is a certified business broker based in Sacramento, California. Call Toll-Free at (844) 414-9700. If you prefer, email him at support@rogersonbusinessservices.com. Andrew serves the whole state of California.
Due Diligence
Due diligence can take anywhere from a few weeks to a few months, depending on the complexity of your business sale in California. Your company’s strategic position, financial data, and other legal matters must be considered. Company value is confirmed, risk is evaluated, and financing is discussed and determined.
This period can bring out differences between the seller and buyer, and a broker can help you navigate these challenges. Everything must be handled with the understanding that a closing date is fast approaching.
Closing Time
For the closing to take place properly, numerous legal documents must be prepared. Typically, an in-person closing is best, as it allows both parties to understand exactly what they are signing and why.
However, the deal does not always end with closing. There may be post-closing issues that arise, such as settling accounts payable, corporate name changes, and structural modifications. The truth of the matter is that selling your business in California is complicated. If it were simple, nearly anyone could do it.
Need help navigating this process or want to hire a business broker to help you sell your business in California? Contact us at Rogerson Business Services with your needs or questions. We are here to help.
Andrew Rogerson is a certified business broker based in Sacramento, California. Call Toll-Free at (844) 414-9700. If you prefer, email him at support@rogersonbusinessservices.com. Andrew serves the whole state of California.