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.