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Business Law

• Tips from Experienced Entrepreneurs on Owning a Business
• Why Buying a Small Business in a Recession Has Advantages
• Becoming a Successful Entrepreneur: What Makes an Entrepreneur Successful?
• State Resources Available for New York Small Businesses
• State Resources Available for New York Small Businesses

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Business Law

• Factors that Drive a Business Sale
• Timing a Business Sale
• Avoiding Partnership Disputes: Issues that Existing Business Owners Must Consider
• Preparing to Sell Your Business
• Purchasing a Business: What is Good Will and Why Should You Care?

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Preparing to Sell Your Business

Even if you do not want to immediately sell your business, operating your business with the intent to sell one day is still a good idea. Every decision you make should be based on building the worth of your company. By preparing for an eventual sale, you will be able to increase the value of your business. Below are some ways you can prepare to sell your business and boost your chances of making a large profit.

Hire an effective management team. A buyer will be more nervous to purchase your business if you are a sole proprietor, as the success of the company may be dependant on you. For a buyer, this risk can be minimized if you have a good management team in place that is overseeing various areas of your organization.

Keep accurate business records. Whether you want to sell your business now or in the future, you should always keep up to date business records, including cash flow statements, accounts receivable reports and so on. Occasionally a buyer will request that you have audited financial statements, which will prove the accuracy of your records.

Avoid filing for a tax extension. If you are thinking about selling your business, then you need to try to avoid filing for a tax extension. Talk with your accountant in advance, so that you know what you need to provide to complete your tax returns on time.

Eliminate product lines or services. There is the possibility that not all of your product lines and services will generate profit. If that is the case, you should eliminate these products and/or services to not only increase your bottom line, but to also attract potential buyers.

Consult with a New York business lawyer. If you are actively looking to sell your business, you should consult with an experienced New York business attorney who can advise you on the necessary steps and can ensure that all the appropriate contracts and documentation are complete.

Contact the law office of Decker, Decker, Dito & Internicola, LLP today at 718-979-4300 or 800-976-4904. We offer legal services to the greater New York and New Jersey areas.