Selling your business is easier said than done. Where to start and what approach is best? Expert attorney Ernest Loor is happy to explain what is involved in a business sale and how to make sure you get the most out of it.
Putting your business up for sale is quite a step, one that may have been running through your mind for years. There are all kinds of reasons why selling your business is a priority right now.
Your company is at the top
Your company has experienced stormy growth and you feel it is now at the top. With new investment, it could potentially grow further, but you no longer want to do that yourself.
You are more of a builder and not a manager
For you, the challenge of owning your own business is in the building up, the pioneering. You have been primarily a human resources manager for years now, which is not what you were born to do.
Your retirement is coming into view
With great pleasure and success, you have worked for your own company. It is now time to hand over the baton and enjoy your well-deserved retirement.
You want to get rid of the risk
Entrepreneurship, no matter how successful, always presents a risk, and that risk can cause stress. Stress, which you no longer want. By selling your business, you are rid of all your worries at once.
You want to have more money at your disposal
All your money has been going to your business for years. You have built up a substantial capital, but you can't access it. Selling your business will finally give you access to the capital.
You want to work less
Entrepreneurship is hard work. Most entrepreneurs put in long work weeks. That can start to be disappointing. If you sell your business, you can start over at a slower pace and enjoy what the hard work has paid off.
Are you planning to sell your business? Start your orientation with a no-obligation telephone consultation. In fifteen minutes I will go through the most important points of interest with you. Feel free to call: 055 303 1950.
Mr. Ernest Loor, Attorney at Law
How do I sell my business?
Because of the above reasons, you have decided that selling your business is the best solution. With this step-by-step plan, you can get off to a good start.
1. Preparation
You have decided that selling your business is the best choice. This step-by-step plan will get you off to a good start.
2. Objectives
Consider what your personal goals are in selling. What do you want to finance with the proceeds? Do you want to keep the business within the family? There are business objectives, such as to what extent you want to remain involved in your business and whether the business will keep your name. Weigh these objectives against each other and decide what you think is most important.
3. Valuation
For yourself, the business may have invaluable value, but what is a realistic amount you can get for your business? There are several calculation methods for that.
For example, you can work with the accounting approach that is based on historical data. Think of a sales price of x number of times sales or profits. Instead, the economic approach assumes future cash flows, as in the discounted cash flow method.
4. Sales team
Selling your business is impossible to do all by yourself. You need an accountant to do the due diligence or bookkeeping, as well as a tax professional and preferably a coach to supervise the process. The most convenient (and probably the cheapest) way is to combine as much of the necessary advice as possible in one person: the acquisition advisor. He can guide you through the legal part, as well as conduct the negotiations for you.
A legal specialist provides control and recording. A specialist such as Ernest Loor can also challenge choices and proactively advise: has the optimal result been achieved?
5. Searching for a buyer
Even if there are multiple hijackers on the coast, you still need to consider what you want: a management buy-in, a management buy-out, a strategic acquisition, an outside investor, or still preferably a family member taking over the business. There are all kinds of considerations you can discuss with an acquisition advisor.
6. Negotiate
Once the whole process has been completed, you have determined the price and found a buyer, then it is time for the negotiations. Of course, you are closely involved in this yourself, but it may be smarter to have the negotiation done by someone who is a little more removed from the acquisition, but who is acting out of your best interests.
Help in selling a business
Call directly: 055 303 1950 or make an appointment.
Pitfalls in selling business
Anything can go wrong during a business sale. Especially if you act in haste. The key is to take your time in selling your business so that you avoid these pitfalls:
Signing the letter of intent too soon
The letter of intent is not optional. If you sign it, make sure that the contract also adequately represents your interest and do not engage with a buyer until you fully support it.
Doing everything yourself
You built the business yourself from the ground up so why not do the selling all by yourself? Many business owners think this way but don't realize enough that cheap is expensive in this case. An acquisition advisor or specialized business acquisition lawyer often knows how to get a better deal out of it that will pay for itself.
Playing hard to get
Many business owners want to go into the negotiation hard and pretend that the buyer doesn't interest them that much. It's a tactic, but usually not the best one. Since you still need to get through one door longer, it is better to try to build a good relationship with the buyer and leave the negotiations to someone else.
Want to know more? We are at your service.
We are happy to think with you. Request a free intake interview for initial advice.
Business sale assistance
Loor Legal & Partners can help you through the entire sales process: from drafting the letter of intent to closing the deal. We list our key services:
The Letter of Intent
A letter of intent is often underestimated and can become a powerful negotiating tool later in the process. In fact, the letter of intent is legally binding in many cases and should therefore be drafted with as much attention as the final purchase contract.
Hedging risks
You don't want the buyer to arrive later with a claim because you forgot to report certain things. To avoid that legal battle, it is important that all risks are covered.
Determining bottlenecks
Every business sale brings bottlenecks. Aspects on which the deal can still fall through, which are not yet known. Our experience allows us to quickly see through those bottlenecks and deal with them.
The negotiation
Of course, you want to sell the business for as much money as possible. Therefore, it is important that you have experienced negotiators who will realize the best deal for you.
The contract of sale
A legally tightly sealed contract of sale is necessary. For that, you need a lawyer who specializes in corporate sales.
Help in selling a business
Call directly: 055 303 1950 or make an appointment.
About Loor Legal & Partners
Loor Legal & Partners is a partnership of three lawyers. In addition to founder Ernest Loor , they are Sander van Harmelen and Luc Houten. They have years of experience in mergers and acquisitions. Ernest Loor further specialized as a takeover lawyer with the post-graduate course in Mergers and Acquisitions. He now has almost eighteen years of experience as a lawyer and has always worked in the world of entrepreneurs and SMEs.
Loor enjoys sharing his knowledge. In addition to being a lawyer, he is also a guest lecturer in the field of corporate law. His expertise and experience were rewarded this year with a nomination for best takeover lawyer of the year at the leading Merger & Acquisition Awards.
The working method of Loor Legal & Partners is characterized by a pragmatic and efficient approach. The team of lawyers prefers a personal approach. In doing so, openness and transparency are self-evident.
Why sell your business with Loor Legal & Partners?
Accessible
In the initial free consultation, we will go over the main concerns of the business sale with you. You are then not committed to anything and can decide completely anonymously whether you want to proceed with the acquisition assistance.
Specialized
The attorneys at Loor Legal & Partners have a mountain of experience and have been assisting corporate sales and acquisitions for many years. From confidentiality agreement to final settlement. So you can be sure that the company is in good hands.
Expert in negotiating
Negotiation is an important part of the sales process. After all, it is at this stage that the deal is clinched. This is where the bottom line must be achieved. We at Loor Legal & Partners can do that like no other.
Free telephone consultation
If you want to go through with the sale of your business, but you are not yet sure whether you want to involve Loor Legal & Partners in this, please contact us without obligation. In an initial free telephone conversation we will go through the most important aspects of your sale with you. On the basis of this initial free advice, you can decide whether there is anything else we can do for you.
It starts with the buyer and seller. In addition, an acquisition specialist and attorney are usually involved. You can also think of any financiers, family, buyers, creditors, banks and employees. You see: there are many stakeholders to consider.