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by Tom West
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1. Place a reasonable price on your business.
Since an inflated figure either turns off or
slows down potential buyers, rely on your
business broker to help you arrive at the best
"win-win" price.
2. Carry on "business as usual." Don't become
so obsessed with the transaction that your
attention wavers from day-to-day demands,
affecting sales, costs, and profits. Since the
selling process could take as long as a year,
the buyer needs to keep seeing a healthy
business.
3. Engage experts to insure confidentiality.
A breach of confidentiality surrounding the sale
of a business can change the course of the
transaction. Expert intermediaries can channel
the process and the parties involved to keep the
sale within safely silent bounds.
4. Prepare for the sale well in advance. Be
sure your records are complete for at least
several years back and do all pertinent legal or
accounting "housecleaning"--as well as a literal
sprucing-up of the plant or store.
5. Anticipating information the buyer may
request. In order to obtain financing, the buyer
will need appraisals on all assets as well as
information to satisfy environmental regulations
(when real estate is concerned).
6. Achieve leverage through buyer
competition. This can be tricky; you are wise to
let your business broker, as a third party,
create a competitive situation with buyers to
position you better in the deal.
7. Be flexible. Don't be the kind of seller
who wants all-cash at the closing, or who won't
accept any contingent payments or an asset
transaction. Depend on the advice of your
intermediaries--their knowledge of financing and
tax implications-- to keep the deal sweet
instead of sour.
8. Negotiate; don't "dominate." You're used
to being your own boss, but be prepared to learn
that the buyer may be used to having his way,
too. With your business broker's help, decide
ahead of time when "to hold" and when "to fold."
9. Keep time from dragging down the deal. To
keep the momentum up, work with your
intermediary to be sure that potential buyers
stay on a time schedule and that offers move in
a timely fashion.
10. Be willing to stay involved. Even if you
are feeling burnt-out, realize that the buyer
may want you to stay within arm's reach for a
while. Consult with intermediaries to determine
how you can best effect a smooth transition.
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