If you own a wills lawyer business, there may come a time when the possibility of selling that business occurs. There are countless reasons why that might happen with some of the more obvious ones being you plan to retire or that you want the liquidity in order to invest in another venture. Regardless of your reasons for selling, before you make any final decision there are some essential questions that you must answer.
In truth, how you answer these questions may or may not have any bearing on your decision to sell, and it might also sway you with regards to who you sell to. We would also add that you should also seek the assistance of a commercial lawyer to ensure that you are fully and legally protected throughout any transaction to sell your business.
Question #1: Are Selling Parts, Or All Of Your Business?
This will be influenced by how big and diverse your wills lawyer business is. If it is relatively small and you focus on a narrow range of services then it is likely you will be selling your business in its entirety. However, for larger legal firms where you have multiple services, you may retain some and sell the others. Whichever it is you must decide on this first, before placing any kind of value on them and then putting those elements of your business up for sale.
Almost everyone has some kind of idea as to how healthy their finances are in general, but in reality, very few would be able to definitely give a detailed evaluation. This where professional financial planning is often required. especially when someone is about to make an important decision relating to their finances such as take out a mortgage.
Be honest with yourself and answer whether you can be 100% certain as to your financial health as it currently exists. If the answer is no, the reason might not be that you do not care, but simply you are unsure where to start or and how to proceed with a personal financial health check.
It is not as difficult as you might imagine, and you certainly do not need to be a qualified accountant. The caveat to that is if you have a major financial decision looming you should seek the advice of financial planning experts at www.andep.com.au. In the meantime, you can at least give yourself a clearer evaluation of your finances by following the 5 steps that follow.
Step #1: Calculate Your Monthly/Annual Net Worth
In order to make any kind of financial decision properly you need to know exactly how much disposable income you have available to you, by calculating your monthly new worth. This can also be done on an annual basis, although monthly is more useful with regards to calculating what you can afford to pay out on a monthly basis. Simply deduct your total outgoings from your total income and do this as a joint figure if you have a spouse or partner.