Quick Look at the Process of Closing a Business Voluntarily

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.

Situations
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.

Emotional costs
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.

Legal requirements
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 broker San Diego

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

The Sales Process