Selling a Business

Very few business owners have the experience and skills to properly price and sell their own businesses. All too often, they start down the path toward selling their businesses without understanding the entire process, and it inevitably costs them thousands of dollars. Even such basic issues as handling phone calls, what materials will be provided to prospects justifying the asking price and evaluating a business for purchase is a daunting and time consuming process. Many buyers will not begin the process if the asking price is way out of line. (We won't look at a business if there is no "selling pamphlet" prepared or if the price is out of line.)   

In most cases, a business is not just assets, but a future stream of earnings. It is the seller’s job to convince a prospective buyer that the future earnings stream is worth something and that the buyer should be willing to pay you for this earnings stream. However, the potential buyer can't touch or see this future stream of money. Selling a business is unlike selling normal assets such as a car or real estate.

Selling a business, you must properly package your business sale presentation so the buyer understands all the business assets—not just the visible assets. You must structure the sale in the most tax-advantageous manner possible while avoiding a hundred traps that could cost you everything. In short, selling a business can be a very daunting task.

Remember: Caveat Vendor (Seller Beware)

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