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Understanding how to sell your business is only half of what you need to know. You also need to know ways to sell your business such as a full or partial sale. Depending on the type of business you have and whether you want to get out of the business completely you do have some options. We will explore these different methods.
Most businesses are sold with a trade sale in which one business buys another. The business buying the other business is often looking to pick up another location for their trade or to run the competition they have had. You also have the option of looking at a private sale with an equity buyer. Occasionally a bank or venture capital firm will help you out so that your employees can purchase the business from you rather than allowing the sale to go to someone unknown.
In a partial sale you will retain some control over the business. You may want to keep a small stake in the business to keep generating income from it. You also might want to have some control over the management and business decisions made. It will depend entirely up to you and the buyer as to the terms. Most buyers prefer a business in which you are no longer an active part. If you are ready to get completely out of the business you will need to do a full sale. This means you relinquish control and any monetary gain you were receiving before the sale. In some cases the new owners may ask you to stay around in a full or partial sale for a few months until the transition is complete and the owners feel they are properly trained.
Depending on the business you own you may or may not have property. It is called a business asset sale if you are selling inventory and office items, but no property. In an asset sale you may sell the computer equipment, display racks and other “furniture” you have along with the inventory. You can also just sell the inventory and business model you were working with. On the other hand if you have property that belongs to the business but you do not want to sell you will need to use a partial sale option. In this sale you would retain the property and the new owner would have to lease the property. You could also just sell the business assets and keep the property empty for you to use as something else.
As you can see there are numerous ways to sell a business. You even have options such as the selling of shares. If you sell shares you still retain control of the company, but you also obtain some capital to use for expansion or to help the business. By selling shares you are really gaining a partner or a few partners over an actual business sale. You have to find the way that works best for you regarding your business sale.