Right now, it’s getting harder and harder to sell your business, and it was never particularly easy to begin with. There are certain new laws that might be coming into effect in the near future that’ll make the process even more difficult for buyers and sellers alike. These newly proposed antitrust laws will be discussed below.

On top of that, we’re also going to talk about the other things that make it quite challenging for people to sell their business. So if this is a position you currently find yourself in and you want to know how to approach it, the information discussed below should be of great benefit to you.

What the Proposed Antitrust Laws Might Mean

The new legislation that’s currently being proposed will, if passed, make it harder for large corporations to acquire smaller businesses. There are certainly some benefits to that, such as in avoiding uncompetitive markets and maintaining the presence of small businesses. However, it’s not good news for anyone looking to sell a business in the near future. Taking buyers out of the market only makes it more difficult from the seller’s point of view. And when it’s difficult to sell, that does damage to the entire market. So finding a buyer might be about to become even more challenging. Here are some of the challenges business owners looking to sell already face.

Settling On an Accurate Valuation

One of the first things you’ll probably try to do when you’re looking to sell your business is come up with a valuation that’ll act as your asking price. You’ll want to make it fair and reasonable so that potential buyers aren’t immediately scared away. But you’ll also want to make sure that you’re not selling your business short and accepting less money than your business is worth. Of course, you can expect buyers to offer less than the asking price, so adding some padding to it helps as well.

Working with a Licensed Mergers and Acquisitions Advisor

If you’re interested in working with a mergers and acquisitions advisor on the sale of your business, it’s important to ensure you only work with one who is fully and correctly licensed to work in your area. It’s an industry that’s strictly regulated and licensing is a must, so if you’re approached by anyone claiming to be a mergers and acquisitions advisor who isn’t verifiably licensed, that’s an immediate red flag and you shouldn’t work with that person.

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Due Diligence on the Buyer

If you’re selling a business that you’ve put a lot of your heart and soul into over the years, you probably want to make sure that you’ve done some due diligence on the buyer before you complete the sale. You don’t want to hand over control to just anyone. Instead, you should make sure that you’re selling to someone who’s going to carry on the business in the right fashion and guide it towards success. If you’ve grown and nurtured this business over many years, it’s about more than money.

The Negotiation Process

One of the most challenging aspects of selling a business is negotiating the sale with the buyer. It might be a long and drawn out process and for a long time it might feel as if the two of you will never meet in the middle. If you’ve never negotiated the sale of a business before, it’s a good idea to learn a bit about the process and how it usually plays out before you do anything else. This guide on how to negotiate will give you lots of the information that you’re probably looking for.

Managing Key Employees in the Lead Up to a Sale

Managing employees once they know that the business is about to be sold can be tricky. Ideally, you want to keep your key employees in place because they’re part of what makes the business appealing as an asset to potential buyers. It’s easy to sell a business that has a team in place that has a proven record of success. It’s not so easy when you’re simply selling the business as a shell with none of the key employees remaining in place to carry on their good work.

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Structuring the Deal Beyond the Buy Price

When you’re putting together the deal to sell your business, you’ll want to make sure that it has some structure and planning to it. Very rarely will it be just a case of swapping ownership of the business for a pile of money. More often than not you’ll negotiate to retain some stock options and other perks like that on top of whatever cash amount you’re asking for. Be sure to think about this and consult an expert on how to structure any deal you do if you’re not sure how.

Staying Motivated Through a Prolonged Sale Process

One of the things that people often don’t foresee is how long the process can be. It’s not always easy to find a buyer quickly, and even when you do, the process of negotiating a deal that both sides are happy with can take a long time. Staying motivated throughout the process while continuing to run the business and push through a deal can sometimes be tough.

Whether to Stay On or Leave Completely

You’ll also need to consider whether you actually want to leave the company completely when you sell it. In some instances, buyers might want you to stay on as an executive or something like that. They’ll see you as someone who knows the business and the person who is responsible for making it what it is. But of course, you might not want to stay on and that’s something you’ll have to consider.

As you can see, there are many challenges that need to be overcome by sellers if they’re going to get the most of their business and achieve a sale. Be sure to make the most of the information above if you’re currently planning the sale of your business. There are plenty of hurdles you’ll need to overcome.