Whether you want to buy or sell business in Jacksonville, FL, you are going to need a plan. Here are some things to consider:
Finances
If you intend on buying a business, you will need capital to buy out the current owner. Getting finances from banks will be easier if you have a stable foundation because lenders prefer giving money to established businesses that already show a steady cash flow.
Selling Your Business, on the other hand, entails doing due diligence in evaluating your business so that you can price it fairly. There is no point in over-pricing as you won’t find willing buyers. However, always start your negotiations with a high price so that as you negotiate down, you have room to adjust and still get a good price for your business.
Timing
There is timing to all things in life, including when to buy or sell business in Jacksonville, FL. You need to stop and ask yourself whether the market conditions are favorable for you to buy or sell. Ask yourself why the seller is selling at this point in time. Depending on the reason, this could be a red flag or inconsequential. Red flags include lack of profitability, debt, and poor market conditions. Green flags include the seller wanting to retire or change jobs.
Current Employees
A company doesn’t run itself. There are employees to consider. Before you decide to buy or sell business in Jacksonville, FL, it’s worth taking the time to think of the employees’ futures. If you are buying the business, you may want to renegotiate packages and contracts. If you are selling the business, it is also worth factoring in the value of your employees into the sale agreement. Negotiate a clause that asks the new owner to keep the employees.
Legal Assistance
This goes without saying, but there is a lot of legal jargon, contracts to read and money to be exchanged. Whenever these three are combined, you certainly need the help of experts, so consult with a lawyer and your accountant before proceeding.
Take your time to plan your buying or selling strategy. Never rush into a sale without a full understanding of what you are getting into.
