In this series, we provided you with the various components to the business sale process. There are a few other considerations for a successful sale. Additional Considerations. As any business owner who has sold a business will tell you, there are many things that can...
In Part 8, we discussed Seller Financing. Let’s assume that careful seller financing closes the financing gap. In this part, we consider transition issues. The buyer wants to have a smooth transition of the business from the old owner to the buyer, with minimal...
Seller financing arises when a buyer either asks for the seller to be paid overtime (instead of receiving a cash payment for the full purchase price at closing) at the outset of the transaction or if the buyer determines during the course of negotiation or before...
In Part 6, we discussed handling communications of the sale with employees, customers, and other stakeholders. In this part, we will discuss earn-outs, a common component of the sale of many small and medium-sized businesses. Step 7. Earn-Outs The Problem One of the...
In Part 5, we discussed the process of documenting the transaction, and the importance of your professional advisors in the process. In this part, we consider the complicated question of communications – with employees, customers, and stakeholders. Who do you tell...
In Part 4, we discussed managing the terms of the sales transaction. We’ve noted in earlier parts of this article that the sale of a business transaction is document intensive. In this part, we consider some of the issues involved in documenting complicated business...
In Part 3, we discussed “cleaning up your act,” to get your business in order for a potential buyer to perform due diligence. In this part, we talk about the dynamics of managing the terms of the sale. Step 4. Manage the Terms. The more you can manage the terms of...
In Part 2 we talked high-level about the process of selling a business. We briefly mentioned the due diligence process. In this part, we discuss the due diligence process in greater detail. Properly preparing for the due diligence process will give you a better chance...
In Part 1, we considered some factors that go into deciding to sell your business. We mentioned the need for a good M&A team to help. In this part, we’ll talk about the process of the sale. This will help you get organized and plan your sale. Even if you’ve decided...
As a business owner and entrepreneur, you’ve worked hard to build a profitable business. At some point in your life, and this happens to just about every business owner, you will pause and consider the future of the business. Maybe you have reached “retirement age.”...
