Buying and Selling a Business

Points to Consider - When Selling your Business

Selling a business presents many challenges and there are specific steps or protocol to follow, in order to avoid mishaps that could cause you to loose your sale. One of the most important things to consider is the confidentiality between business broker and the vehicles in which the business is marketed.  How do you minimize the possibility of employees, vendors, and competitors, finding out that your business is for sale? An experienced and competent broker operates on a “need to know” basis by first evaluating prospective buyers and only then having them sign a confidentiality agreement.

When you are ready to sell, how will you establish your price?  A price too low, leaves money on the table and a price too high, will be used as a comp to sell a lower priced business to someone else. An experienced business team will naturally have an intuitive feeling about the marketplace derived from having a good history in business sales. 

If you sell a business and subsequently your buyer fails at running the business you once had, sometimes that buyer will look to you for blame.  How do you minimize exposure? A competent broker will help you prepare for the journey and protect you along the way.

Can your business broker communicate the tax attributes to your potential purchaser, as well as communicating EBITDA?  At our firm, you get a business broker that is also a CPA. We not only can negotiate a sale, but also have the accounting background to prepare your financial projections and owner benefit schedules that give the purchaser a guide to move forward after the sale occurs.

 

Points to Consider - When Buying a Business

Before beginning to look for a business to buy, define your criteria. The geographic location, the time frame in which the business should be sold, the required cash flow necessary to sustain you for the first year why your learning the ropes and the financial, what employees are going to be kept, do you  have technically competent employees to assist you with your new endeavor.  Are the leases transferable and if it is a franchise, does it have to be approved?  How are you going to finance your purchase?

Owning your own business can be both emotionally and financially rewarding. As with any investment, but there are risks and the goal is to minimize those risks.  This is where our office can come in and assist you.

Entering into your “letter of intent” will be a critical stage on the purchase and then you will follow with the due diligence process.

Due diligence will be your last step before entering into your final purchase agreement. Our due diligence management team is experienced in this processes.  We have certified public accountants excellent backgrounds to go into any business and test the transactions to confirm whether the numbers are true and correct.  Our auditing background assists us in making the proper analysis through agreed upon procedures and to issue a report of our findings.