Selling your business is a big step thus it should not be taken lightly. It has been your source of income and you have poured your heart and soul into it. Selling a business in Connecticut can be tough but smart planning is important to avoid costly mistakes.

Do not rush the process. You should take your time and explore all options. To sell your business without looking at all possibilities might mean missing a better deal. On the other hand, waiting too long to sell can also hurt you.

Before you do anything, it is better to talk to a business lawyer, an accountant and a business broker. They can give you specific advice according to your situation. They will help you understand the legal side of things, protect your interests and make sure that you get the best possible outcome from the sale. They can help you navigate this complex process with confidence. So keep reading to know more.

Why 2025 is a Unique Year for Business Sales?

The M&A market has shifted. After the boom of 2021, buying and selling businesses in Connecticut is now more challenging. Higher interest rates and stricter lending make it harder for buyers to get loans. In addition, many businesses are not earning as much as they used to which affect their value.

Buyers are doing more research than ever. They are hiring experts to help them understand a company’s true worth and create complex deals. This means Connecticut business brokers need to present only the strongest, most prepared companies to attract serious buyers and ensure sellers get the best possible price.

To get top rate, start planning your business sale early, ideally months or even years in advance. Buyers want reassurance of stability, clear and accurate financial records and a capable management team to keep things running smoothly after you leave.

If you are considering to sell your business in Connecticut, you need to focus on careful planning, being open and honest about your business and choose the right advisor to guide you throughout the process.

Top 3 Things to do Before Selling Your Connecticut Business

Have a look at the top 3 things right below to consider before you sell your business in Connecticut.

Determine the Fair Market Value of your Business

Before selling business in Connecticut, figure out what it is really worth. You need a fair price that makes sense to everyone involved such as banks, potential buyers and expert business appraisers. Do not just pick a number out of thin air.

Calculating your business’s value is key. You want an asking price that can be justified and will not scare anyone away. There are ways to quickly estimate your company’s worth which will help you set a realistic and attractive price.

Assemble your Team of Professionals

Selling or buying a business involves many steps. To make it easier, build a team of experts to guide you. At least have a CPA or tax attorney who can give you tax advice, a use business broker to buy a business that help you understand the market and find the best deal and a transactional lawyer to handle the legal paperwork. This team will help you understand your choices, avoid pitfalls and ensure everything goes smoothly. They will discuss the best options for you, explain complex topics and work hard to get you the best outcome. Having expert support is crucial for a successful transaction.

Consider the Right Deal Structure

Getting the business valuation right is just the start. You also need to figure out the best way to structure the deal and that is where experts like business brokers and transactional attorneys come in. Brokers know the market and can advise you on structures that are common in your industry while attorneys make sure that the deal protects you legally. There are a few common deal structures to consider. An all-cash upfront deal might mean a lower sale price. Another option is using SBA financing to fund the purchase. Seller financing involves the seller lending money to the buyer. Finally, an earn-out structure bases part of the payment on the future performance of the business.

Issues to Consider Before Selling Business

Selling your business involves several steps. First, decide what you want from the sale. Then, create a detailed plan. It is smart to get advice from professionals like lawyers and accountants. Negotiate a good price and clear terms that work for you. Careful planning and good advice will help you achieve a successful sale. Before starting, think about these important issues to make the process smoother.

• Priorities: What is most important to you in this sale (e.g., price, speed, employee welfare)?
• Legality: Does your role in the company (partner, etc.) limit your selling ability or require extra care in honesty and disclosure?
• Timing: When is the ideal time to sell for maximum value and how long will the entire process likely take?
• Advisors: What professionals (lawyers, brokers, accountants) do you need to hire and how do you find qualified ones?
• Business Updates: Does your business need updates? Do you need to create a better curb appeal both physically and financially. Does it make sense to wait for that next contract or fix some steadily rising costs?
• Financial Reporting: Make sure that your bookkeeping is up to date and sorted out for accuracy. 

Having a planned exit strategy can make a huge difference during the sale process. Being prepared can minimize stress, increase the sale price and speed up the sale process. Talk to one of our business brokers today for free 30 minute exit strategy session.