Selling
your business? - Follow these ten
commandments to avoid wrecking the
deal!
Place
A Reasonable Price On Your
Business
An inflated figure either turns
off or slows down potential
buyers, rely on your business
broker to arrive at the best
"win-win" price.
An "unrealistic price"
discourages many buyers from even
looking at a business.
Carry
On "Business As Usual"
Don't become so obsessed with the
transaction that your attention
wonders from day-to-day demands,
affecting sales, costs, and
profits.
Engage
An Expert Business Broker
A breach of confidentiality
surrounding the sale of a business
can change the course of the
transaction and damage a business
in the future.
Prepare
For The Sale Well In Advance
A good business broker will
prepare an offering portfolio for
the business to have ready for
qualified buyers. The
business owners can help in the
process by
"housecleaning" - as
well as a literal sprucing up of
the facilities.
Anticipate
Information The Buyers And Their
Financing Sources May Require
In order to obtain financing, the
buyer will need appraisals on
assets. Lenders will require
at least three years of tax
returns and the most recent
financial statement.
Achieve
Leverage Through Buyer Competition
A good business priced properly
many times will create interest
from several buyers and create a
competitive situation.
Be
Flexible
Don't be the kind of seller who
wants all-cash at the closing, or
who won't accept any contingent
payments or an asset transaction.
Depend on the advice of your
business broker - their knowledge
of financing and tax implications.
Negotiate;
Don't Dominate
You are used to being your own
boss, but be prepared to learn
that the buyer may be used to
having his way, too. With
your business broker's help,
decide ahead of time "when to
hold and when to fold."
Keep
Time From Dragging Down The Deal
To keep the momentum up, work with
your business broker to be sure
that potential buyers stay on a
time schedule and that offers and
counter-offers move in a timely
fashion.
Be
Willing To Stay Involved
Even if you are feeling
burned-out, realize that the buyer
may want you to stay within arm's
reach for a while. Consult
with business brokers to determine
how you can best effect a smooth
transition.
