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I have an online business and I have a potential buyer

Hi,

I have an online business that I'm thinking of selling for around $25k, which is approximately how much the revenue has been since its opening in 2010. I have a customer who is interested in purchasing my business since I recently expressed interest in selling. He wants to make a deposit of about $5k and wants to pay on terms, 20 months to be exact.

Can I handle this without a broker? If so, how? I would particularly appreciate comments from sellers who have sold a business in a similar situation as mine but all comments are welcome and encouraged. Thank you. I am also curious how much would I expect to pay in taxes?

Thank you!

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Answers (4)
Marv White
Bizprofitpro
Hartford County, CT
Premium Broker

Don, is spot on, I would like to echo the attorney involvement in terms of the proper filing to your state. Additionally I would make sure I had a personal guarantee and some collateral. It adds some teeth to you getting paid. Additionally it may allow you to sell the note at a discount in future should you want immediate cash.

Aug 22, 2014
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The BAF Group LLC
MD

Elle, I would never, ever do a sale without an attorney writing the contract, particularly with respect to the financing asked to act. People say it is too much to pay, but it is far more if you get sued or don't get paid because of a faulty contract.

Aug 22, 2014
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Los Angeles County, CA

Thank you Don Barrick! This was very helpful. I'm mostly happy with the $ amount I would say but the term he put on the table is twice as long as I want it to be. He said that's the best he can do in regards to $ and terms. He was a great customer and I wanted him to be the first one to know and have the opportunity to buy when I decide to sell. However, I'm hoping I can negotiate the terms.

I found some Do It Yourself forms on Nolo.com where I can fill a "Sales Contract - Installment Payments" form and pay $29 for it. Would it be a good idea to just fill that out when we agree on the $ amount terms and have a business attorney look over it?

One of the reasons I'm not trying to find other buyers is because it's a niche product that I sell online. I wonder if I should contact a select few of my current customers (who buy wholesale from me) to see if they would be interested?

Aug 22, 2014
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The BAF Group LLC
MD

You do not need a Broker - and I am a Broker - if you have a deal with which you are satisfied. What you possibly sacrifice is the competitive nature of putting the business out to the public, in an effort to obtain the highest possible pricing. In our experience, what you pay a Broker is outweighed by the amount we can potentially get you for the sale. But again, if you are satisfied with the deal you have, go for it. You do, however need an Attorney to write up the Contract of Sale, and preferably a second agreement for the Note. As for your Tax question, you need to speak to an Accountant who is familiar with your business; no one can answer that kind of question without knowing the history of your business, and specifically the costs involved in starting it up.

Aug 22, 2014

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