How-to Guides and Expert Articles on Business Sale
A collection of how-to guides, expert articles and case-studies. Segmented by the 4-track framework of business sale process.
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 2017-2018
- How to Sell a Restaurant: 5 Hints for the Owner
- How to Prepare a Business Selling Memorandum
Checking 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 externally and internally. Make use of the Communications Plan template provided.
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.
Learn how to sell a business to employees, or to management by implementing ESOP (Employee Stock Ownership Plan) or MBO (Managemet Buyout).
Transferring your business to a family member, to your son or daughter, requires planning and tax considerations. You must figure out what your retirement needs are and the benefits of either selling the business to a family member or giving it to them as a gift.
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.
Learn about the length of time it takes to sell a business. All information is backed by statistics and verified information. Then, learn how to speed up the sales process by implementing a series of strategies which can motivate the buyer to close the deal faster.
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.
Sale of a home-based business is a challenging task for the owner. 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 strategies, business valuation, due diligence and drafting the buy-sell agreement. A short guide to prepare your business for sale.
Selling a company is not an easy decision to make — you'll need to take several critical steps to plan and prepare your business for sale.
A sole proprietorship is a business without a separate legal entity. Find out how to sell such a business and what you must know prior to transfer the ownership. Due diligence and tax implications addressed.
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.
Is your dad selling his business? You may want to provide some help. Anyone who has ever run a small business knows just how hard it can be to start selling it.
You've made a decision to sell your business. However before preparing the business for sale, think again about your motivation and the reasons. Why are you selling?
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.
For this brief overview of business sale timing, let's simplify the issue into 3 areas: personal needs, financial needs, and a realistic business valuation.
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 about how to sell a home-based or single-person business operation. See the answer by Donald M. Barrick, a Business Broker from Maryland.
Preparing 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 your 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.
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.
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..
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.
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.
Valuation of privately own companies earning income of 1 million or less is often based on Seller’s Discretionary Earnings (SDE), a common metric
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.
Selling a small business fast requires the owner to take certain steps in finding the right buyer and making preparations within the organization to prepare for the sale.
For a small business owner it's important to have a risk management strategy on place to increase business value. When preparing your company for sale, a risk management plan shall be a priority.
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.
Thinking of selling your business? Read this step-by-step guide about where to begin, and how to schedule the tasks and steps to orchestrate the sale process in logical and efficient way.
There are a number of things you can do to get the most out of the sale of your business. Read more.
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.
The Sales Memorandum is a key document in the business sale process. It’s the written review of the business that prospective buyers seek.
How do you prepare your business for sale? Here is a simple framework to highlight potential change actions that help to increase sellability and value of your business.
Here are some pros and cons of selling a business with or without a business broker (FSBO). Make sure you weigh up all options when valuing the business, promoting your sale listing, and managing legalities.
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.
Going to Market
Where to sell a small business in 2017/2018? 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.
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.
Learn how to plan, prepare and market your business for sale by selecting the most efficient and cost-effective ways and websites for online advertising.
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.
Selling your business? This how-to guide addresses the question about qualification of serious buyers as 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.
Read how to filter prospects from suspects during business sale process. What is effective communication, which information to provide, and when.
How to sell a business that is losing money? Read this guide about your options for sale in general, and especially selling business assets efficiently and quickly via online auction.
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.
Closing the Deal
Here's an insight into tax consequences when selling a business. Asset sale vs stock sale, capital gains tax explained. Learn how much tax you will pay when selling a sole proprietorship, partnership, LLC, or corporation.
The sale of a business involves taking certain legal steps to ensure that the copleting of the transaction is done properly, and with minimum risk for the seller. Find out what those steps are.
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.
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.
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.
Due Diligence is important for both buyer and seller in a business sale transaction. Read this article about what is Due Diligence, and what is required the seller to prepare for it.
Businesses are sold through assets or stock (shares) sale. The difference stems from factors such as what type the company is, and tax considerations. To decide, you need to understand the pros and cons with selling assets vs sale of business entity.
This may be the first time to selling your business. You want to be sure that you are covering all your bases before, during and after the negotiations with the buyer.
The Letter of Intent defines what a business sale deal may look like and provides parties (the buyer and seller) some time to perform Due Diligence, and finalize the buy-sell agreement. Also known as Proposal to Buy a Business, or Offer to Purchase a Business.
Selling a business, required legal documents discussed: Non-Disclosure Agreement, Letter of Intent, Term Sheet, Business Sale Agreement and Bill of Sale.
Read about how to avoid pitfalls and mistakes when closing business sale. Topics included: negotiating the deal, getting paid, deal closure, communication and transition issues.
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.
A comprehensive guide to selling business assets vs stock (selling shares). Learn how it works with different types of business. Tax implications, as well as seller interests vs buyer interest, discussed in detail.
When you sell your business, chances are that you will have to pay a capital gains tax. It's a tax on the company’s capital assets that you sell and make money on. Learn how to lower the tax burden.
Learn how to sell your business tax-efficiently via installment sales, a common method of seller financing. Special aspects with sole proprietorships, LLC's and corporations addressed.