A sale of your business either as a sole trader, partner or through shares in a company may be to children, friends, through a management buy-out or sale to unrelated third parties. A sale may be to a person not currently a competitor or it might be a merger of your business with a competitor, or a sale of your business by a party acquiring a greater market share by someone already involved in your industry but higher or lower on the chain that you. Irrespective of to whom the business is sold you should consider:
What is more important: The sale price or the continuation of the business?
Do you want the ownership retained by a family member or do you want the business to be in the hands of the best person (you can find) to grow or continue the business? If the sale is to be to a family member who in the family is to purchase the business and how will the succession best be achieved? Do you need expert help in succession planning?
If you are only concerned in maximising the sale price:
What tax breaks will you received if you sell the business and retire?
What tax breaks will you received if you sell the business and invest in another business or businesses?
Are you prepared to remain in the business after it is sold? If so for how long and on what basis: as an employee, paid or unpaid consultant or as a director of the board?
Are you prepared to provide a restraint of trade provision in the sale? If so, for how long and for what geographical area?
Are you prepared to leave your name associated with the business after it is sold?
Will the existing employees have to be dismissed or will the new owner want to take them on?
If you own the premises from which the business is conducted, are the premises to be sold with the business, separately to the business or leased to the new owner? The issue of the value of the purchase price of the premises has to be addressed or the rental to be paid must be negotiated.
If the business uses intellectual property that you own will the intellectual property be sold with the business or will you retain ownership of it and license its use to the purchaser?
If you are going to license intellectual property thought must be given as to how you are to assess and or verify the accuracy of the license fees paid to you by the purchaser.