Selling a business: what to expect

Business owners want to maximize value while minimizing risk and taxes when they sell.  But achieving this result requires planning and effort. This series will help you get there:  here’s the sequence of topics we’ll be covering in some detail over the coming weeks.

Understanding what buyers are looking for

Buyers are looking for the right business under the right terms and conditions. Most are looking for an ongoing income (a top advantage of buying an existing business) with trained employees and an existing customer base. The cash flow of the business they’re purchasing needs to be enough to cover their financing payments while still leaving them enough money to live on. In most cases, they’ll need the seller to take back a note for a portion of the purchase price.

Managing confidentiality

For most businesses, confidentiality is a critical factor in a successful sale. You do not want your staff, suppliers, bankers, customers or competitors to know that you’re selling. Who can you talk to? Who do you need to talk to? How do you protect confidentiality when you want exposure to a broad group of prospective buyers? How much information do you release and when?

Building value

We’ll cover the financial, organizational and operational issues in adding value to your business before your departure and get experts to weigh in. Every step you take to prepare your business for sale will also create a more enjoyable and more productive business environment. You’ll also be ready when the timing is right or when opportunity knocks.