Follow this guide if you plan to sell your existing business.
The right time to sell
It is not a regular marketplace out there. You have to wait and watch for the conditions to be just right to sell for a profit. That is the external factor. The internal factor to consider is whether to sell when you are making a loss and it is no longer sustainable or to hold and maximize revenues and sell when you are on top. We help you to decide so that you can cut losses or maximize revenues from the sale by selling at the right time.
A business is not like a product to which one can assign a market value offhand. One has to consider a variety of related factors such as assets, brand value in the market, outstanding debits, customer base, revenues and so on. Our experts help to value your business for what it is worth.
How to get maximum value
You cannot set an arbitrary value to your business nor would you like to sell at a lower price. The best way out is to create value through carefully planned improvements advised by our consultants. As a result, value on paper and physical value of your business increases to the maximum.
Finding the right buyer
The right buyer is, ideally, one who offers the maximum price and agrees to your terms but this rarely happens. We have to compromise. Manan Business helps you to find the right buyer who will agree to a reasonable value, engage in reasonable negotiations and agree to complete the transaction quickly within the defined time period.
Is it true that selling to overseas buyer is more profitable?
In many cases it is true but that again depends on the business segment and demand factors. In general, we can say that overseas buyers who wish to purchase your business for strategic reasons will pay more since they value price in dollars which is higher than valuations in Indian rupees. However, more formalities may be involved in selling to foreign bidders so that regulatory compliances are met and it may take longer too.
How to evaluate an offer
A primary offer may look good but there may be many provisos attached that ultimately reduce the value. Manan Business experts evaluate an offer and look at all connected factors to decide if that offer is good or whether you should look for a better one.
What is deal structure and its impact?
The price agreement is the starting point but there many related steps and factors that need to be mapped out, something taken care of by our experts in structuring the deal and finalizing the step-by step process towards completion. Payment terms and schedule, legal permissions and related processes must be done in a methodical structure in what is known as a deal structure. Deal structuring may also be interpreted to mean that the buyer will probably bring in investors and map out their share and interests in the venture. Buyers also may want sellers to bear part costs and that understanding goes into the deal structure.