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Selling a DBA

I have never incorporated my business but want to sell it. What are the steps I need to take to prepare it for sale? I have been told that selling a DBA is not possible.

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Answers (6)
Michael Hamlar
Hamlar Enterprises, LLC
Roanoke City County, VA

Hey Jen,

That is a great questions and it really depends on the set up of the business. In DBA I'm assuming you are refering to a "Doing Business As" which in part is a subgroup of an existing business. Different states may have different laws but I know in the state of Virginia it is legal and done often. Any time you are buying or selling a business I would recommend consulting an attorney at least for one visit to get the dos and donts. I hope this helps some. If you have further questions please do not hesitate to contact our office toll free at 1-800-682-1950 ext 101.

Regards,

Michael Lawrence Hamlar
President & CEO
Hamlar Enterprises, LLC
Hamlar Business Broker
P.O. Box 3336
Roanoke, VA 24015
Office: 1.800.682.1950 ext 101
Fax: 1.800.682.1950
Website: www.hamlarenterprises.com
Email: mike@hamlarenterprises.com
Skype: MHamlar

Dec 18, 2010
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The BAF Group LLC
MD

Whenever someone uses phrases like "most", in making wide and wild assertions, I simply want to ask, how many? Who? Let's talk specifics to back up your claims. I don't know of a single CPA, who has worked either the buyer-side or the sell-side of our deals, that has ever complained about any claims of "spinning" the numbers. About 70% of our new business comes from Attorneys, CPAs, Buyers and Sellers who have worked with us in the past, and had very satisfying experience.

I have my own bias: People that trash others in exaggerated, generalized statements, which they cannot support in terms of quantitative analysis. Your own experience may be very valid, in just those terms - your own experience. But then, I could give you example after example of Sellers providing misleading information, which we either refute or qualify before publishing, (and then there those like the one I just declined to represent, this past Wednesday); and I can to the same with Buyers who exaggerate their own financial capabilities, (I am dealing with one, right now,) wasting the hell out of a huge chunk of my time.

But I don't trash all Buyers and Sellers, as a result!

Dec 18, 2010
Buy-a- Company

Sorry for the typo. The word I thought in typed was "venue". Really, Don, that's what you revert to?

Yes, I do have a bias against brokers. But not for some nefarious reason, to promote my own business. My bias comes from my dealings in the past as a business seller dealing with brokers. Never again.

Brokers are famous for spinning the numbers. Most sellers who use brokers leave the closing table with less than half the down payment, and take monthly payments less than they would have earned if they'd just hired a manager and kept the business forever. Do the math before you agree to sell through a broker.

Dec 17, 2010
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The BAF Group LLC
MD

You may not need a Business Broker, as the last writer declares; but if you are asking an elementary quesiton of this nature, chances are you would be well served by retaining a qualified Broker. That's not an insult. There are a LOT of people I hire, because I don't have the expertise to do some things myself. Being an amateur at something is not a negative; but you have to know your limits and determine when the benefits of hiring someone to work for you outweighs the cost. In the vast, vast majority of cases, a qualified Business Broker can more than earn you far more than his/her commission. I just put a business under contract that will Net the Seller 33% more than he was getting, by trying to sell it on his own. My fee to him is a fraction of the extra amount I provided him. And, I got the Buyer an SBA loan, to boot. It does you no good to get a business under contract, if the Buyer can't get a loan.

And as for the last writer, he stated that "...choose the proper venire..." I got confused about the term "venire". According to the dictionary, it is: "A writ issued by a judge to a sheriff directing the summons of prospective jurors. Also called venire facias. 2. The panel of prospective jurors from which a jury is selected." I don't know whether you need a Business Broker - but you don't need a writ from a judge, either!

Be aware that the previous writer has a bias against Brokers, because his/her business is in direct competition with them. He/she makes frequent, negative comments about Business Brokers, because he apparently cannot promote his/her business without doing so. Very poor form. Be aware that there are some BAD Brokers out there. There are some BAD Doctors out there. And there are some people writing BAD advice, right here. Weigh all advice, very carefully.

Dec 16, 2010
Buy-a- Company

Most business sales are the "DBA's", as you call them, not the corporation. DBAs sell all the time. First step is to clearly define the business model, so a prospective buyer can know exactly what the business does. Then, make sure the books are clean, so you can demonstrate what the bottom line profit is. Then, choose the proper venire to advertise it for sale. You do not need a broker, but, if the company is of any real size, you will want a CPA and attorney.

Dec 15, 2010
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The BAF Group LLC
MD

Not true.

Dec 15, 2010

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