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.

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