Tips & Techniques

Selling Your Business?
Follow these Ten Commandments to avoid losing a deal!

  1. Place A Reasonable Price On Your Business An "unrealistic price" discourages many buyers from even looking at a business.
  2. Carry On "Business As Usual" Don't become obsessed with the transaction that your attention wonders from the day-to-day demands, affecting sales, costs, and profits.
  3. Engage An Expert Business Consultant A breach of confidentiality surrounding the sale of a business can change the course of the transaction, and damage a business in the future.
  4. Prepare For The Sale Well In Advance The business owners can help in the process by "housecleaning" a literal sprucing up of the facilities.
  5. Anticipate Information Buyers And Their Financing Sources May Require In order to obtain financing, the buyer may need appraisals on assets. Lenders will require at least three years of tax returns, and the most recent financial statement.
  6. Achieve Leverage Through Buyer Competition A good business priced properly, will create interest from several buyers, and create a competitive situation.
  7. Be Flexible Don't be the kind of seller who wants all-cash at the closing, or who won't accept any contingent payments.
  8. Negotiate; Don't Dominate You are used to being your own boss, but the buyer may be used to having his way, too. With your Business Consultants help, decide ahead of time "when to hold and when to fold."
  9. Keep Time From Dragging Down The Deal Work with your Consultant to be sure that potential buyers stay on a time schedule, and that offers and counter-offers move forward in a timely fashion.
  10. Be Willing To Stay Involved Even if you are feeling burned-out, realize that the buyer may want you to stay within arm's reach for a while.