Buy Business For Sale
Buy Business For Sale | You have probably closed the business sale deal already. The business transition process is a sophisticated and delicate one that requires careful planning. If you plan early, you can make the process a smooth one.
Planning early for an ownership transition is key. You’ll need to consider important factors during and after the business sale.
During the Transition
Let us consider a few key steps of business ownership transition during the sale process first.
Does the Entity Need to Dissolve?
The running business you have purchased can have a different legal entity that you wanted. A business entity would eventually affect your business and personal tax returns and hence the profitability.
Consider the importance of changing the business’s legal structure at this stage. You can consult with a professional such as a business broker or an attorney to get expert advice before your Buy Business For Sale plan. Deciding on the right entity structure is of utmost importance for your business’s success in the long run.
Transferring the Business Documents
Buy Business For Sale | You’ll need to make a checklist of important business documents for transferring ownership. These documents can include business legal ownership documents, licenses, patents, contracts, lease agreements, bank accounts, and so on.
Make sure to dig deeper at this stage and complete the process thoroughly. Changing the ownership name on the legal documents such as in the IRS records is of utmost importance. It will save you from any legal complications and hence from any penalties later.
Transferring Ownership of Business Assets and Liabilities
Transferring the ownership of assets and liabilities is one of the key tasks for you before you commence operations at the new office. You would already have a list of complete business assets and liabilities as included in the business valuation process.
It is important to transfer the ownership of all assets as well as liabilities such as bank loans, overdrafts, lease contracts and accounts payables. This will make your Buy Business For Sale plan rum smoothly.
Transferring Controls of Business Operations
At this stage, taking control of business operations is important. These controls include physical access to business premises and soft controls such as security passwords and login access to computers.
Once you have possession of business operations, you should test run each process. Ask the seller to stick around for a while for a smooth transition of physical controls. This can also be added in the terms of your Buy Business For Sale.
After the Transition
There are a few key steps of business ownership transition that take place after the business sale has completed as well. Let us briefly discuss these steps too.
Introduction with the Employees
That’s the foremost and important task that you’ll perform when you take the charge of your new office. Introducing yourself to new employees and staff means knowing the strength of HR.
At this stage, you can decide on the hiring or firing of the staff. Take a planned and cautious approach and evaluate each case thoroughly before making the final decision on employee retention.
Introduction with the Clients and Suppliers
All businesses have important relations that must be preserved even after an ownership transition. Knowing a business’s valuable clients and suppliers would help you build on the already laid foundation.
Again, you can seek help from the previous owner at this stage. You can also utilize the services of a senior employee for introduction to key stakeholders at this stage.
Communication is the Key for Buy Business For Sale
You’ll bring a new business plan with you. Your strategic and operational planning would be different from the previous owner. However, communicating the new business strategy with all stakeholders effectively is important.
You’ll need to be proactive at this stage to clearly communicate the new action plan. Setting realistic expectations from employees and other stakeholders at this stage would ensure a smooth transition as well. For instance, you may want to change the pricing structure for your newly owned dental practice business. However, it will take time for existing customers to understand the new pricing plan and the added benefits for them.
Managing the Cultural Changes
Strategic planning comes from the top management of a business. It means the culture shapes by the policies and procedures adopted by the top management. It’s natural to make a cultural shift to an existing business as no two business owners would think alike. However, managing the cultural shift is a delicate task.
Elaborate the benefits of the new business culture to all stakeholders. Again, communication is key at this stage too. Effectively collaboration with all stakeholders at this stage would make the job easier for you.