How-to Guides and Expert Articles on Business Sale
A collection of how-to guides, expert articles and case-studies. Segmented by the 4 stages of business sale process that is supported by ExitAdviser.
Top 5 Guides on Selling a Business
- Business Valuation Methods
- How to Value a Business - a Step-by-Step Valuation Guide
- Where To Sell a Business in 2017
- How to Sell a Restaurant: 5 Hints for the Owner
- How to Prepare a Business Selling Memorandum
Check the Status
Selling a restaurant or a café is complicated than selling a business in general. As the owner, you have to go through a time consuming process to come up with a good exit plan.
Exit strategy is something that every business owner looks for at some stage of their life. Even if you are a small business owner, you need to figure out the right way to leave your company and hand over the keys.
This article guides you through the process of communicating your decision to sell your business. Make use of our Communication Plan template.
Selling your business to a competitor can mean saving time and money from trying to find a third-party buyer. Competitors are already familiar with the industry of your business and they know how to manage it properly. Owners just need to be wary of the risks involved by learning how to protect themselves throughout the sale.
The primary reason businesses are not salable is that business owners fail to plan for the sale. Unrealistic valuation, customer concentration and poor accounting are common obstacles.
Sale of a home-based business is a challenging task for the owners. Read what to consider when preparing for sale and selling a single-person business.
Selling an independent pharmacy business is similar to selling any other company, but there are some additional wrinkles associated with this kind of sale.
How do you sell your business? Read about exit strategy, business valuation, due diligence and buy-sell agreement. A short guide to prepare your business for sale.
Learn how to sell a business to employees, or to management by implementing ESOP (Employee Stock Ownership Plan) or MBO (Managemet Buyout).
Selling a company is not an easy decision to make and you'll need to take several critical steps to prepare yourself and your business for sale.
You've made a decision to sell your business. However before preparing it for sale, think again about your motivation.
Is your family member selling his/her business? Anyone who has ever run a small business knows just how hard it can be. Read more.
The sale of a family-owned business can be tricky. You can sell it on the open market, or to another family member. There are pros and cons to each one of these options. Read about the tips, tricks, and traps with family businesses.
Selling a franchise business can be easy for finding buyers but tricky when it comes to the terms and conditions set forth by the franchisor. Franchisees must learn the rules, restrictions and obligations of reselling their franchise to a new buyer.
For this brief overview of business sale timing, let's simplify the issue into 3 areas: personal needs, financial needs and realistic business valuation.
Thinking of selling your business? Are you ready, and is your business prepared? Here is a comprehensive checklist to keep your reasons and motivation to sell well organized.
Transferring your business to a family member requires planning and tax considerations to be made first. You must figure out what your retirement needs are and the benefits of either selling the business to your family member or simply giving it to them as a gift.
How do you feel about selling your business? Once you know your personal type so much that was previously unexplained becomes clear to you.
A how-to guide on valuing and selling a web-based, internet business. Factors that will influence the worth of your website. Steps of the overall online business-for-sale process addressed.
Thinking about retirement? It is never too late for a founder to lay down the plan and timelines for the transfer of business ownership and to prepare a solid business succession plan.
The question was posed at Bizbuysell Community as to how to sell a home-based or single-person business operation. See the answer by Donald M. Barrick, a professional broker from Maryland.
Prepare for Sale
These common business valuation methods give you a solid platform for price negotiations: profit multiplier, discounted cash flow, comparables, and asset valuation. Examples included.
How do you value a business? Here is a practical, step-by-step guide to small business valuation. DCF - Discounted Cash Flow method discussed in detail.
Read what is, and how to prepare a Sales Memorandum when selling your business. It finalizes your sale proposition, the key selling points, and drives the promotional messages used in your advertising.
Learn about debt considerations when selling a business. What happens to debt? Stock sale vs asset sales. How business value is affected by debt and more..
Enterprise Value (EV) is a measure of a company’s total business value. EV is the theoretical price for a business if it were to be bought.
The business valuation methods include: calculating the value of the underlying assets, finding the liquidation value, and calculating the future income potential of the business.
Valuation of privately own companies earning income of 1 million or less is often based on Seller’s Discretionary Earnings (SDE), a common metric
What methods or formulas can be used to value a business? Read this how-to article about some common valuation models such as asset-based, comparative, option pricing and the DSF-equation.
Post-money valuation (enterprise value) is determined by calculating number of factors. This goes beyond looking at debt, current market value and cash on hand.
For a small business owner it's important to have a risk management strategy to increase business value. When preparing your company for sale, a proper risk management plan shall be a priority.
How to prepare a business for sale? Here is a simple framework to highlight potential change actions that help to increase the value of your small business.
Selling your business? Read this how-to guide about where to begin and how to schedule the tasks and steps to orchestrate the sale process in logical and efficient way.
Selling your company is a once-in-a-lifetime event. To get the best possible return on your investment, check these 12+1 things to do when preparing your business for sale.
There are a number of things you can do to get the most out of the sale of your business. Read more.
The Sales Memorandum is a key document in the business sale process. It’s the written review of the business that prospective buyers seek.
A married businessperson needs to protect their business interests early on in case they get divorced from their spouse. Read how to make your business assets divorce-proof.
There are two ways for pricing your business for sale: 1) valuing on profits, 2) valuing on business potential. Good housekeeping, i.e. keeping the financials in tact, plays an important role as well.
Go to Market
Where to sell a small business in Y2017? Which sites to consider for an online listing and what are the criteria to compare them? A review of top business for sale marketplace websites presented.
Learn how to prepare and market your small business for sale by selecting the most efficient and cost-effective channels and websites for online advertising.
Selling a business? You mine as well go without a business broker and save time and money. Selling a company without a broker is reasonable, and not as hard as you might think.
Start by thinking yourself into the mind of a potential buyer of your business. What will be at the top of their list of considerations? Be prepared.
Read how to filter prospects from suspects during business sale process. What is effective communication, which information to provide, and when.
Selling a business? This knowledge piece covers in detail the qualification of buyers as firm prospects and the subsequent refinement of these down to a shortlist.
Selling a business? Look at how businesses with different size are typically marketed and sold.
These days buyers first look online to identify potential businesses to purchase. It's critical to devote some attention to your listing's content and Landing Page.
During the business sale process you are receiving enquiries from potential buyers. However as with so much else in life, it’s the detail that counts.
Sellers of their businesses often make common mistakes. Some of the top mistakes can be found in this article.
Close the Deal
There are many options to be considered when structuring a deal to close the sale of your business. The trick is coming up with a deal that beneﬁts both parties and provides incentives for the seller and buyer to sign.
Here's an insight into tax consequences when selling a business. Asset sale vs stock sale. Capital gain explained. Limited Liability Company, Sole Proprietorship, C Corporation, Partnership, or S Corporation? Learn how tax implications differ by type of company.
Due diligence is important for both buyer and seller in a business sale transaction. Read this article about due diligence and what is required for it.
This may be the first time to sell a business, a major step for you. You want to be sure that you are covering all your bases before, during and after the negotiations.
Businesses are sold through assets or stock sale. The difference stems from factors such as what type the company is, such as C Corp, and tax considerations. To decide which sale to select, you need to understand the pros and cons with selling assets vs shares.
Learn how seller financing works for an owner selling his/her business. Pros, cons, and risks addressed with owner-funded business for sale transactions. Tax benefits of seller financing.
As the seller, construct your business lease agreement appropriately so that your buyer takes over all responsibility of the lease and that you do not. Tips for selling a business with a lease attached.
Selling a business, legal papers discussed: Non Disclosure Agreement, Letter of Intent, Term Sheet, Business Sale Agreement and Bill of Sale.
An expert-article about how to avoid pitfalls when closing the business for sale deal. Topics included: negotiating the deal, getting paid, deal closure, communications and transition.
The Letter of Intent (LOI) defines what a business sale deal may look like, and then allows both parties - but mainly the buyer - some time to perform Due Diligence to verify the information presented.
There are two skillsets that are particularly welcome additions to a business sale team namely, legal and financial. It’s common for business owners to use qualified Attorneys and Accountants on a periodic basis.