A business broker San Diego understands that the best time to close a business is when it is doing well. However, there are situations that might cause you to close down involuntarily. If you are closing voluntarily, we shall be taking a look at the information you need to have in this post.
There are two situations that allow you to close your business voluntarily:
- The need to no longer run it. This happens when you don’t want to sell to a new owner and there is no one to succeed you.
- The business has been failing and it is hard for you to sell it. In this case, a sale is considered to help pay off debts and keep whatever is left by selling the business assets. Doing this prior to insolvency or bankruptcy will help you exit without the risk of long-lasting impacts. Business brokers San Diegowill help you plot the best way forward.
Once you have reached the decision to close down, it is imperative that you draft and exit strategy. Your business broker, accountant or business adviser will help with this plan. Your business structure will dictate the time it takes to close down. Your special circumstances and reasons will also have a part to play. Big companies with sophisticated operations normally take years whereas sole trader operating from home close within weeks.
The process of selling the business will not be without emotions. It is common to feel like you are letting your community, employees and customers down by closing the business. The best thing you can do is to delegate the sale to a business broker San Diego and try to remain positive throughout the sale. Your business broker can help you get confidential emotional as well as crisis support.
You don’t want to take shortcuts when selling your business. You must familiarize yourself with all the legal requirements before you get started. Some of the things you will have to do include the following:
- Cancelling the business name. This should be done within 28 days of closing the business.
- Notify staffs about terminating their employment. Permanent employees will be owed entitlements which might include accrued annual leave.
- Finalize tax issues
- Cancel workers’ compensation insurance plans
- Dissolve partnership
A lot goes into the closing of a business. The best thing you can do is to find and work with the most experienced and reliable business broker San Diego. Don’t sell or close on your own. There is a lot of work involved and the business broker will alleviate the burden.
Business brokers Orange County understand that a business may need to be closed for many reasons. At times, the business owner just wants to get the business off his hands thus sells it at a throw away price. Other times, selling the business is as a result of legal requirements. In this post, we shall be taking a look at the top reasons why business owners choose to close their business.
The decision to sell a business doesn’t necessarily have to come from poor business performance. More often than not, the sale is considered because the owner wishes to retire. This is one of the best reasons to sell a business. A business broker Orange County will be able to pitch a successful business easier to potential buyers and fetch a good price.
The best thing about closing a business voluntarily is that you have ample time to plan your closure. You will have all the time you need to get the paperwork ready and close efficiently while at the same time meeting all the legal obligations, saving money and take maximum profits.
Another common reason why business owners choose to close their business is when it is failing. A business can fail because of many things including inability to keep up with the times or poor management. When a business is failing, you will not have as much time as with voluntary closing. You have to act fast before the value hits a record low. Business brokers Orange County will help with business valuation and help you get the business ready for sale.
Selling a failing business is done to avoid total loss. The option can also be considered in order to get money to pay off debts. In the case of a failing business, you have to find a business broker that is experienced in this area.
Buried in debts
If your business can no longer afford to pay its debts, then selling it might be a great idea. The problem with this option is that you will not get the best price for it since the new owner will be inheriting your debts. The best buyers for such a business are your competitors and suppliers. If the debt is too big and you can’t seem to find a buyer, a business owner might consider the last resort which is filing for bankruptcy. Always seek expert advice prior to considering this option. There are serious consequences that come with filing for bankruptcy.
The above are just the top reasons why most businesses close. Make sure you have a good reason for selling long before you contact business brokers Orange County. Having a bad reason may cause the broker to assume that you will back out of the deal prematurely. In this case, the business brokers will either charger a higher commission with strict terms or simply choose not to work with you.