How to transfer a business

Self- employment has been an option for many with the economic crisis, but it is always difficult and requires a great effort to start a business from scratch. Therefore, many people have seen a good opportunity, acquiring a business that is transferred, as many others have seen fit that it was time for other people to continue managing their business. In this way, it is easier for some to get rid of the business and for others to start the reins of it. In this article of .com we will explain how to transfer a business .

Steps to follow:

one

Transferring a business is a consistent activity in which the owner of the same and who has made it work for a certain period of time, decides to put it on sale. A transfer does not include only the physical location, but all the facilities and investments that have been carried out in it, and in many cases the merchandise. It also includes the intrinsic value that corresponds to the business itself, such as its years of activity or its fixed customers. Normally, the transfer includes a down payment amount and a periodic fee.

two

Probably one of the most difficult things for the owner is to determine the value that the business has at the time of being transferred. For this we will have to value first all the assets they have, referring to machinery, furniture, etc. We must take into account the state in which they are located. On the other hand, we must also consider the stocks in case we leave them to the new owner, since not in all the businesses it is possible to transfer it. Finally, the goodwill of the business itself, taking into account its clientele, its geographical location or the historical value of the business.

3

In order to speed up the transfer process, it will be important that we publicize the transfer, since as everything that is sold or exchanged, the more people who know it before, we will be able to do it. For this, apart from hanging the typical poster, we can:

Spread it among our network of contacts.
Advertise in the media, especially the locals, as we will probably pass it on to someone who knows the place.
There are also many online portals where we can publish our transfer offer.

4

Once we find a buyer, we probably proceed to start a negotiation process between him and us, since our buyer, when not knowing the details about the purchase, will want to know them in depth, like quantity of machinery that is in the premises or if they will be transferred also stocks. It is very important to be very clear about the minimum amount that we can afford to transfer the business, depending on whether we only want to cover losses or want to have a monthly benefit through quotas, or how much money we want to receive in the transfer payment. We have to evaluate all these options.

5

Once the price of the transfer has been determined, there are some characteristics of the administrative procedures to be carried out that we will have to take into account: