Selling Your Business

Selling Your Business

Almost without exception, sellers lose thousands of dollars when selling their business because they make some very basic mistakes that could have and should have been avoided.

I inevitably find that most people who are selling their business haven't thought past putting the ad in the newspaper or listing it with some real estate agent. They haven't thought about:

...how they will handle any calls,

...what material needs to be given prospective buyers,

...how to justify their asking price,

...what kind of contract structure,

...etc., etc., etc.

There are many issues that you need to pay special attention to when selling your business. Here are just 5.

1.    Properly preparing the business for sale.

Creating a Selling Pamphlet. Gathering all relevant documents including proper financial documents. Everything flows from this process including:

...documenting the appropriateness of your asking price,

...facilitating the ability to negotiate with multiple prospects,

...creating an audit trail to forestall future law suit,

...etc., etc., etc.

2.    Identifying the best type of buyer for your business.

Example: A buyer who would be an absentee owner will generally pay less than someone who will work in the business. What is the buyer profile who will pay the most for your business?

3.    Structure the sale with an understanding of sale price impact.

The very manner in which the sale is structured could double the value of the company and what you are paid. Conversely, it could also significantly reduce the value of your company and what you are paid.

You need to consider these issues before you have your first conversation with a prospect. It will allow you to direct the negotiations toward the direction or deal structure which is most advantageous to you.

4.    What are the tax implications for you from the way the sale is being structured?

Not knowing the tax implications can cost you $20,000 per each $100,000 in profits you are paid in the sale. Wouldn’t you feel a little stupid if you find out after the fact that had you structured the sale a little differently you could have saved all that money?

5.  Do you really understand how the after-sale liability exposure could cost you everything?

What if the buyer claims you misled them by not disclosing all the necessary information or that you lied?

What evidence do you have that is not the case?

A lawsuit will cost you $25,000 minimum in legal fees and the onus will be on you to prove that you provided the buyer with all the material information.

How do you think you will feel losing, paying your attorney, paying the award, and possibly paying his legal fees? Oh yes, and getting your business back in shambles. –

Good Luck if you took a short cut with Item 1.

Free How To Sell Your Business Guide

We also provide you with a free tutorial “Selling Guide”, similar to "Cliffs Notes".  The Selling Guide is a clear, understandable outline of the very points you need to address.  Reviewing the Guide will help you consider and rule out those options that are just not feasible. Knowing what you can't do has the effect of allowing you to focus on what is possible. Additionally, the Guide will identify the mistakes that owners make when selling their businesses that cost them $$$ thousands.

Link Online Selling Guide...                         Link Download Selling Guide...

Websites, including ours are great sources for generic information. However, they DON’T TALK to you. I can almost guaranty that your lack of experience in selling a business is going to result in costing you thousands needlessly. You need to learn what are the traps that likely will cost you money and act on the information.

I most strongly suggest that you immediately consult with your accountant and lawyer before it is too late. If the cost to speak with them is too expensive you can call me. There is NO CHARGE for the Free Initial Consultation.

No matter who you select to consult with you need to do it now not later after it is too late.