SELLING YOUR COMPANY IN 10 EASY STEPS

While a wealth management firm can handle many of the details of selling your business, it is important that you understand the process yourself to maximize your profits.

There is a great deal of preparation involved in maximizing profits when selling your business. Familiarize yourself with our ten basic steps for a successful company sale. Discuss with your choice of business lawyer or consultant to determine the correct approach to each step based on your unique business model. Peruse the rest of this site to enhance your understanding of the process of selling your business. The following are ten steps to selling your business.

1. Select a team who will take charge of selling your company. This will include a lawyer, financial planner, accountant, business consultant, and wealth management firm.

2. Make your company attractive to buyers. Position and market your company based on what is important to prospects.

3. Locate prospective buyers. Learn their priorities in order to gain leverage for an optimal negotiation position.
4. Encourage multiple bidders. Multiple prospects will result in a bidding war and drive up the price of your company.
5. Work with your business lawyer or wealth management firm to find the worth of your company under several valuation models.
6. Explore different deal structures and learn their advantages and disadvantages, such as stock, cash, up-front, and earn-out. Your wealth management firm can help you choose the most profitable deal structure. We can refer you to a wealth management firm.
7. Learn effective negotiation. Familiarize yourself with your role and the roles of others in the process of selling your company. Incorporate the guidance of your company consultant, wealth management firm, and business lawyer. Offers many choices of business lawyers, business consultants, and firms.
8. Hire a business consultant to analyze your company processes. Whenever return of investment can be increased, your bottom line is increased. We can help you with issues in company process reengineering.
9. Sell for a high price by making your company sustainable. Practice excellent customer service and communication with both prospects and employees. Offer your staff job security after the sale to keep your company functioning at its best.
Prepare yourself for the closing sale and learn what to expect. Consult your business lawyer to ensure you get the most out of your closing sale.

Misclassification of Independant Contractors

When deciding whether a worker has been misclassified, the Internal Revenue Service examines various factors regarding the relationship between the employer and the worker. If the Internal Revenue Service concludes that the worker has been misclassified as an independent contractor, the employer faces severe penalization for harming the worker, avoiding tax, and shirking important insurance payments. Various factors used by the Internal Revenue Service to decide 1099 contractor misclassification include the following:

Financial influence: Independent contractors are rarely paid a regular, weekly wage. Similarly, they have usually made a financial investment in their own business, through which they offer services to employers. If these factors are absent, a worker is most likely an employee, not an 1099 contractor.

Behavioral influence: Factors such as workplace, work time, work attire, training for work to be completed, and where the worker obtains tools required to complete a job influences whether or not a worker is an independent contractor. If the employer controls these factors, the worker is most likely an employee, and not a 1099 contractor.

Duration of work: Independent contractors usually take on specific, finite projects. Meanwhile, employees aren’t often hired with a clearly defined end date. Instead, they receive new assignments as work is completed. Consult your San Diego employment lawyer to decide how duration of work affects your situation or the status of your workers, as some private contractors may receive ongoing assignments.

Nature of work: Employees usually complete work that is essential to the functioning of the business, rather than  providing supplemental labor, which is more often the role of an independent contractor. For example, delivery drivers for a microbrewery generally would not be considered 1099 contractors, since, although they are not working in a traditional, controlled office setting, their work is   essential to the functioning of the company. Meanwhile, a freelance writer who creates advertising content for a business would be more likely considered a 1099 contractor, since the services he or she provides are supplementary, and not essential to day-to-day functioning.

Relationship between employer and worker: If a worker is free to pursue other jobs in addition to working for the employer in question, then he or she may be an independent contractor. However, if the employer provides the sole source of income for the worker, than he or she may be considered an employee.

Deciding whether a worker is an independent contractor can be confusing. Employers who are unsure of how to classify workers are strongly advised to consult a San Diego employment lawyer, since even accidentally misclassifying an employee as a 1099 contractor can result in severe punishment. Similarly, if you are a worker and feel you may have been misclassified, save yourself time and money before filing a suit by consulting a San Diego labor lawyer to determine your legal status