Phone

(408) 436-1900

Silicon Valley
Orange County
SLO County
San Diego County

Phone

(408)-436-1900

Silicon Valley
Orange County
SLO County
San Diego County

Phone

(408) 436-1900

Locations

Silicon Valley, Orange County
SLO County, San Diego County

Locations

Silicon Valley, Orange County, SLO County, San Diego County

Are You Ready To Sell Your Business?

Here are a few industry inside secrets that may help you decide.

Are you ready to sell your business? Or Is your business ready to sell?

Here are a few industry inside secrets that may help you decide.

  1. Unrealistic Price
    When a business goes to market, it should be listed at a price within a reasonable range to its FMV (affording some room for negotiation). Pricing a business outside of industry norms rarely results in success.
  2. Creative Accounting
    A business owner has run their entire personal life through the company requiring a significant number of P&L adjustments. The business will not qualify for transaction financing.
  3. Sellers of businesses less than a year old
    Businesses that have been existence for less than 12 months are essentially start-ups and very difficult to sell.
  4. Sellers that won’t accept any seller financing
    Some structures require seller financing such as goodwill in excess of $500,000.
  5. Sellers that have partners they won’t disclose
  6. C-Corps and Stock Sales
    A stock sale should only be considered if the business has non-transferable contracts  
  7. Pending litigation
  8. The Seller is the business.
    Businesses that generate revenue largely due to the personal relationships of the owner create enormous challenges when a business sale is considered. In situations where the seller ‘is the business’, a comprehensive transition plan is required and likely, a structured payout.
  9. Customer Concentration
    High levels of customer concentration impact the salability of the business.
  10. Commercial property issues
    Landlords who are unwilling to provide either a new lease to the buyer or assign the current lease waste lots of time and could jeopardize the business sale.

If you have any questions, feel free to contact us.

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Section Title

Stock Sale vs. Asset Sale: Understanding the Key Differences

When selling a business, one of the most critical decisions is whether to structure the transaction as a stock sale or an asset sale. Each approach comes with distinct implications for both buyers and...

Addressing Legal and Compliance Issues Before Listing Your Business for Sale

Navigating the legal and compliance aspects of preparing your business for sale might be the most daunting and critical part of the preparation work. Addressing these matters thoroughly before listing...

How to Seize the Right Moment to Sell Your Business

Timing is crucial for maximizing your business's value. Understand how to capitalize on the opportune moment by evaluating your business's performance, identifying advantageous market conditions, and...

How SBA Loan Can Maximize Your Business’s Marketability: A Seller’s Perspective

When it comes time to sell, ensuring your business is SBA-eligible can significantly boost its attractiveness to potential buyers. In this article, we explore how meeting SBA eligibility requirements...

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Are You Ready To Sell Your Business?