Selling a company is a big challenge, it can be hard to estimate how much it is worth, how many people are interested, how much it will cost to sell and how long it will take, and once you’ve made the decision to sell, it’s even more difficult to get it done.
A company can be a valuable asset and a tough sell, with that, said, there are surefire ways to sell a company and make the process as straightforward as possible.
What is the process for selling a company?
The first step to sell my company is to decide on the path forward, the most common option is to go public and sell shares in a public stock exchange, although there are many other avenues to consider.
You might decide to seek out an investment banking firm that offers IPO financing or a private equity firm that can help with an M&A or strategic merger of some type.
When deciding which path to take, it’s important to consider the financial state of your company, if you’re considering a public offering, you’ll want to make sure your business is in good financial shape.
You may also want to look into other tax advantages of going public, such as capital gains tax implications, once you’ve determined the path for selling your company, you’ll need to decide how to price your shares.
When determining the price of your shares, you may also want to consider the market cap of your company and if you decide to sell privately, you may decide to price your shares at a price that will yield the highest profit margin given the current state of your business.
There are many factors to consider, including the state of the stock markets and how long you’re willing to wait before selling, also need to consider the amount of time you have before you need to sell to avoid violating applicable laws.
If you sell all of your shares, you’ll need to determine if you’ll continue to hold onto the remaining shares or sell them, too and if you sell your shares, you’ll need to determine if there are any restrictions on the sale.
How do you list a company for sale?
Depending on your path forward, you’ll need to decide how to list your company for sale, publicly traded companies can list their shares on public stock exchanges, while privately held companies must list their shares on a stock exchange.
Companies can list their shares on an exchange either on their own or through an investment banker, in order to list your shares, you’ll need to determine if you want to go public, or go private.
If you decide to go public, you’ll need to file paperwork with the appropriate regulatory agencies, such as the Securities and Exchange Commission, also need to decide on the type of securities you’ll list, such as regular stock, common stock, preferred stock or warrants.
Private companies will have a few other options for public offerings, including an online listing and a direct listing.
Companies that choose to go private often have the option of an online listing, which allows private companies to list their shares on stock exchanges with minimal regulatory oversight.
Companies that choose to go public often use investment banks to help them with the process of a public offering. Investment banks will help companies with a range of services, including helping companies with a securities offering and marketing the shares to investors.