You have run your company, a mobile home park, for years. You enjoyed it and the business has done well. You even expanded at one point, buying a nearby lot. Now, however, it is time for you to retire. You don’t have any children who want to take on the business, so you simply decide to sell it and use the money to fund that retirement. It seems like a simple plan.
But is it? If that sale is your retirement fund, you can’t afford any mistakes. Selling a company is not as easy and straightforward as selling a car or even a house. Here are a few tips that can help guide the process:
- Realistically consider the value in advance. You need to know what price you’re trying to get, what is realistic in the market and what you would accept. If this proves difficult on your own, you may want to work with a third-party appraiser.
- Gather records to show buyers. They will ask you what you’ve paid in taxes, what the property was worth, how much money the business makes annually, what expenses you have and much more. Have all those documents on hand long before you even list the company.
- Determine what personal financial expenses and obligations you have. Make sure they’re all completely separate from the company. For instance, if the company owns your car, make sure you change that as soon as possible.
- Make minor updates and repairs. Not only does this make the property show better, but buyers may ask you to do it anyway, so doing it in advance speeds up the process.
As you move forward with this process, it’s important to become well aware of the legal steps you need to take.