Selling A Business Frank Duggan

What YOU Need to Do Buyers will demand a tremendous amount of info. You must know the following: –Selling price –Partial or Full –Pay attention to your business during sale –Ins and Outs of your business –Clear financial statements –Fees assessed with selling 10% Broker fees

WHO Can Help YOU Business Brokers –Acts as an agent for an owner looking to sell a business –Maintains confidentiality –Can utilize his/her own contacts for sale –Also can act as a intermediary between parties

Management Agreements Seller may be asked to continue to run the business after the sale Continue to run cash flow analysis because this will be the basis of the sale It Depends: –Selling your business depends greatly on the market and the economy Generally businesses sell for significantly less than the asking price

Attorneys Things to do for the attorney: –1. Prepare a circular or prospectus summarizing your business for potential buyers –2. Prepare a purchase and sales agreement

Employees and Qualified Buyers Make sure employees hear about the potential sale of the company Rumors may breed nervousness Tire Kickers Judge quickly

Assisting Questions Have you ever bought or owned your own business before What is your time frame for buying a business What other types of businesses are you looking at Do you have adequate cash to buy the business

The Buy and Sell Seller may need financing –Ask in advance –Solid collateral to protect your loan –Sell or lease hard assets for profit –Offer a rate a few point higher than commercial banks Buyer –Owners are said to put ridiculous asking prices. Says your not serious about selling –Determine bottom line price –Be serious –Prepare statements and other info in advance –Consider customers, suppliers, and vendors as potential buyers

Advertise Business opportunity section Sunday papers “Blind” ads by using the publications address for inquires Run a small ad

How Long Small business –2-6 months Larger business –6-12 months

What Fails You’re the same old song and dance Diversify with less power than all in one area Change strategy too often