After putting in years of dedication, time and hard work, it often becomes time for a business owner to step away. Each year many businesses change hands or close their doors for various reasons. Owners decide to retire, pass ownership to their children or other trusted partner, or merely wish to embark on a new endeavor.
These owners must follow several necessary steps and procedures to properly cease operations or sell their business, and many items must be addressed before either process can be completed.
There is a plethora of items business owners must consider carefully as they plan to sell their businesses. The U.S. Small Business Administration (USSBA) suggests owners take into account and contemplate:
This list is clearly not exhaustive. However, it demonstrates the depth of information required to properly change a company's ownership, as well as the complexity involved in these deals.
Instead of selling a company, many owners simply decide to close and shut down their businesses. As stated by the USSBA, many key factors must be considered for this as well:
Again, other issues must be addressed before closure can be official. If an owner or partner is considering selling a business he or she should contact an experienced business law attorney to discuss options and ensure adherence to all necessary steps.