Buying or Selling a Business: Essential Advice from Transaction Veterans
Navigating the complexities of buying or selling a business requires expert guidance and careful planning. We've gathered valuable insights from seasoned professionals in the field - including business brokers, M&A advisors, certified appraisers, and SBA lenders - to help guide you through the process. Drawing from their extensive experience in business acquisitions, exit strategies, deal structuring, and transaction financing, these experts share their most valuable advice.
Avoiding Common Pitfalls in a Business Valuation
While business owners might be tempted to rely on their CPA, anecdotal evidence, or personal assessment to determine their company's worth, accurate business valuation requires specialized expertise to account for multiple factors and avoid costly mistakes. Discover how working with a certified valuation professional can help you determine your business's true worth, whether for sale, estate planning, or other purposes with Avoiding Common Pitfalls in a Business Valuation.
15 Critical Mistakes to Avoid When Selling Your Business
Business owners often make critical mistakes that can significantly impact their company's value and sellability, including rushing the sale, maintaining poor financial records, being too personally involved in operations, and ignoring key issues that need addressing. Learn how to protect your business value and ensure a successful sale by avoiding these common pitfalls with 15 Critical Mistakes to Avoid When Selling Your Business for more information on the mistakes to avoid when running and preparing to sell your business.
Understanding Key Terms in Business Broker Contracts
A business broker serves as an intermediary in business sales, managing everything from valuation to closing, and before engaging one, sellers should thoroughly understand the key terms in broker contracts. Explore Understanding Key Terms in Business Broker Contracts for more information on the essential contract elements to consider when hiring a business broker, including engagement periods, exclusivity clauses, commission structures, and seller obligations.
Red Flags When Working with a Business Broker
While business brokers play an important role in buying and selling businesses, not all brokers operate with the same level of professionalism and ethics, making it essential to watch for red flags like high upfront fees, lack of transparency, and pressure tactics. Read Red Flags When Working with a Business Broker for more information on how to identify and avoid problematic business brokers, including the importance of professional credentials, appropriate marketing approaches, and willingness to co-broker.
Lease Due Diligence FAQ: Answers for Buying or Selling a Business
The lease agreement is a critical component in buying or selling a business, involving complex considerations around timing, transfer processes, deposits, and landlord relationships that both buyers and sellers must carefully navigate. Get answers to important questions with Lease Due Diligence FAQ: Answers for Buying or Selling a Business for more information on essential lease-related issues and steps that buyers and sellers should consider, including when to contact landlords, lease length requirements, transfer methods, and special considerations when the seller is also the landlord.
When to Consider a Lower Offer on the Sale of Your Business
In business sales, while owners naturally aim for maximum value, there are compelling circumstances where accepting a lower offer might be strategically sound, including market conditions, urgent personal situations, financial health concerns, and buyer qualifications. Examine When to Consider a Lower Offer on the Sale of Your Business to understand the strategic reasons why accepting a lower offer might sometimes be the right business decision.
Structured Installment Sales: A Business Seller's New Best Friend
A structured installment sale offers sellers a tax-efficient way to receive payments over time through an assignment company and annuity, potentially reducing capital gains tax liability while providing a secure, customizable income stream. Explore Structured Installment Sales: A Business Seller’s New Best Friend to learn how this tax-efficient payment method could benefit your business sale, including comparisons to traditional seller financing and important considerations about tax implications.
Who Should Attend Your Business Sales Closing
The closing day of a business sale is a critical event that requires careful preparation and the presence or availability of all key parties, including corporate officers, shareholders, attorneys, and brokers. Get prepared for your closing day by understanding who needs to be present and what issues commonly arise, from inventory discrepancies to purchase price allocation with Who Should Attend Your Business Sales Closing.
Successfully buying or selling a business requires the support of experienced professionals who can guide you through each step of the process. Visit BizBuySell's Broker Directory to connect with qualified business brokers who can help you navigate your business transaction from start to finish.