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.

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.
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.
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.
Sellers that won’t accept any seller financing
Some structures require seller financing such as goodwill in excess of $500,000.
Sellers that have partners they won’t disclose
C-Corps and Stock Sales
A stock sale should only be considered if the business has non-transferable contracts
Pending litigation
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.
Customer Concentration
High levels of customer concentration impact the salability of the business.
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.

Selling a business is more than finding a buyer—it’s about ensuring a smooth transition during due diligence and the take the sale to the finish line. In this blog, we break down the process of due diligence, from financial reviews to negotiation strategies. Don’t let hidden risks derail your sale; preparation is key to securing a profitable deal.

Maximizing Deal Flexibility: Seller Financing and Earnouts

In today’s dynamic business environment, deal flexibility is crucial. This blog explores two powerful tools: seller financing and earnouts. These strategies help bridge valuation gaps, reduce risks, and align long-term interests for buyers and sellers alike. By incorporating these tools into transactions, parties can adapt to changing circumstances and maximize value.

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 sellers, affecting taxes, liabilities, and the complexity of the deal. Consulting with experts like Accel Business Advisors to understand these differences is essential for making an informed decision that aligns with your financial and strategic goals.

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 can help avoid delays, lost opportunities, or legal complications. We put a comprehensive list of legal and compliance issues to consider in this blog. Read the blog to learn how to identify and eliminate potential roadblocks before the sale.