Thursday, May 10, 2007

Selling a Business

One of our favorite sites for business start-up guidance is the Business Owner's Toolkit which covers all aspects of starting and running a business.

One topic covered that I have referred to recently is the section on selling a business, something that comes up from time to time. I found that this site covers just about every step in the process.
You can read the complete section on selling a business here.

Here are the major issues you need to think about when it's time to sell your business:
Initial issues in selling out: how should you time your decision and choose experts to help, and what legal/ethical pitfalls do you need to avoid?

Valuations of small businesses: how does the market put a price on a small business, and what can you do to maximize your own business's value?

Finding a buyer: what do you need to know about working with a business broker, creating a selling memorandum, and other marketing concerns?

Structuring the deal: what are your options as to terms, paying particular attention to the tax implications of various alternatives?

Financing the deal: what should you know about seller financing, and third-party financing through leveraged buyouts?

Completing the deal: from the Letter of Intent through due diligence to the closing, what are the typical steps you can expect to go through in the sales process?

After the sale: we add a few notes about your new, unencumbered life!

2 comments:

Rhonda Harts said...

Interesting article. I need to sell my business, so this will come in handy. I want to post it online, but I haven't found any good sites. Do you have any suggestions? Thanks.

Doug Geofferson said...

Rhonda -- There are a lot of resources you could use, like your local Chamber of Commerce or business brokers.

I recommend checking out BizTrader.com. It's this online global marketplace where you can invest, buy, and sell a business. It's inexpensive (and often free) to use, and if you do decide to use a broker, they post on it as well. Check it out and good luck!