Articles and Guidance on Business Sale
A collection of how-to guides, expert articles, and case studies that are segmented by ExitAdviser's 4-step sale process.
Top 5 Guides on Selling a Business
- Business Valuation Methods
- Tax Considerations When Selling a Business
- How to Transfer Your Business to a Family Member
- How to Value a Business: A Step-by-Step Guide
- How to Sell a Restaurant: 5 Hints for the Owner
Checking the Status
Transferring your business to a family member like your son or daughter requires planning and tax considerations. Read about selling the business to a family member or giving it to them as a gift.
Selling a restaurant or a café is more 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.
This is a complete guide on selling a small business by owner. Topics addressed: hiring a broker vs DIY, pricing the business, legal questions, tax implications, and much more.
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.
Learn how to sell a business to employees, or to management by implementing ESOP (Employee Stock Ownership Plan) or MBO (Managemet Buyout).
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.
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.
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.
This article guides you through the process of communicating your decision to sell your business - externally and internally. Use the letter template provided to communicate your message to employees, partners, suppliers, and other key stakeholders.
Should you sell your company? Read about common reasons why small business owners are selling their company. As it turns out, their choices are made up of 12 different scenarios that a business owner might find themselves in.
You may be wondering how long does it take to sell a small business. Learn about how to speed up the sales process by implementing a series of smart strategies which can motivate the buyer to close the deal faster.
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.
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.
Sale of a home-based business is a challenging task for the owner. Read what to consider when your intention is to prepare single-person business for sale.
When selling your company, keep it confidential. Read how does it work with your employees, customers, vendors, competitors, and potential buyers.
This is a short set of instruction and guidance on exit strategies, principles of business valuation, due diligence, and drafting the buy-sell agreement. Aimed at small business owners selling their company.
Selling an independent pharmacy business is similar to selling any other company, but there are some additional wrinkles associated with this kind of 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.
This is brief overview of timing your business sale. Let's simplify the question into three areas: your personal needs, your financial needs, and a realistic business valuation.
You've made a decision to sell your business. However before preparing your business for the sale, think again about your motivation, and the reasons. Why are you selling?
Is your dad selling his business? Now what? You may want to provide him some help. Anyone who has ever run a small business knows just how hard it can be to start selling it.
What many business owners fail to think about when they entertain the idea of selling their business is what factors may make it harder to sell. Take a look at 12 of these.
Thinking of selling your business? Are you ready, and is your business well prepared? Here is a checklist to keep your reasons and motivation to sell well organized.
How do you feel about selling your company? It's obviosly not easy stepping back from a business you've spent your whole life building. Learn how emotions and your personality type play a large role in selling a business.
Transferring the ownership of a company to a family member could have far-reaching and devastating effects on the family and business lives of the owner. Instead, selling it, is a perfect solution to avoid such dire turn of events.
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 selling your company? Read about 12 factors that can help you ensure your business is salable, valuable and attractive to potential buyers.
Share your story and let us publish your article (or case study) on ExitAdviser. We accept well-written and unique posts on topics around selling a small business by owner. Get in touch and let us know your ideas.
I recently sold my leather handbag business last year (One Fated Knight) to a friend I knew for a few years and this is my story of why I sold the company, my process, and lessons learned from the whole experience.
This is a set of case studies on selling a business. Why did you decide to sell? Did you use a business broker or went by DIY route? Stories shared, and lessons learned.
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.
Miles Gordon: My advice would be to talk with people who have been through the process. Whether you use a broker or not, you will be more informed at the end of the conversation than you were at the start.
In the best-case scenario both partners will agree to sell. But if one of partners/owners is not interested in selling their share, then this is obviously a big problem. Read about buy-sell agreements, mediating, and legal courses.
A real-life case-study by Ryan Crow; about mistakes made and lessons learned when selling his business.
This is an end-to-end, 12-step approach to selling a business. ExitAdviser helps you to proceed with the 4 main stages: checking the status, preparing for sale, going to market, and closing the sale.
Selling your business now might not be the best return on investment strategy, particularly if you know you could give the company a few more years. Here are 12+ reasons why you should not sell your business yet.
A real-life case-study by Amy Rees Anderson about how she sold her business. Lessons learned, mistakes made, and what next...
Here's an immediate action plan any small business owner can undertake to survive the Covid-19 crisis. Before thinking about selling-off, consider these 7 measures to commit.
To buy, or not to buy, that is the question many entrepreneurs ask when deciding whether to launch a new business or to take over the existing company; the right solution depends on many factors and variables.
If you are thinking about exiting your business but don't know how to execute the sale during this crisis, here is a detailed guide on how to do so.
When business owners are trying to sell their businesses with land and buildings, they usually have issues with whether to leave the real estate and sell the company or sell both separately. Read about the questions that you may need to address.
Take a look at seven case studies about well-known and successfully sold businesses like Instagram, LinkedIn and WhatsApp.
If you are looking to retire, one of your priorities might be selling your retail business. Here is a set of tips and hints to consider when selling a retail store.
It’s never easy knowing clearly whether your business is high risk or not, but it could. It might seem like the perfect time to sell it only to realize that it’s a high-risk business. Read about how to do it smartly.
The perfect asset any buyer would want to own is one where even without the owner everything runs smoothly. Have you prepared your company to run without you? Here are a number of things to think about.
To be on the safe side and to start off well, you might want to avoid making the mistakes that many business sellers have made before you.
Do not make the mistake of thinking that selling a small business is a simple process, many owners often settle for lower prices they didn’t intend on agreeing on. Read about how to get the best price for your business.
There are various reasons why someone might invest into a particular business. In many cases, what sets one company apart from comparable ones, is its collection of valuable assets.
It’s not really hard to sell a business to a partner although it can be complicated if not handled right. Allowing a partner to completely own the company is one of the commonest ways of transferring ownership.
It’s not easy to sell any business, small or otherwise. The process is complex in terms of logistics, best practices and even personal emotions for the owners and investors involved. Here are 8 unique steps you need to be aware of to help you sell your company resplendently.
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 is discussed in detail, and with examples.
Read about 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.
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.
Common business valuation methods include: calculating the value of the underlying assets, finding the liquidation value, and calculating the future income potential of the business (also called as Discounted Free Cash Flow to Owners).
Selling a small business fast requires the owner to take certain steps in going to market, finding the right buyer, and making preparations within the organization to be prepared for the sale.
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.
The purpose of this checklist is to help small business owners understand key topics when considering how to sell their business for the most money. Check out these 9 key items 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. Here's a checklist to prepare your business for sale.
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.
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.
It is better to be realistic when setting an asking price for your business. Make it right by considering all the key factors (13) when pricing your business for sale.
Intellectual property is a legal term which refers to intangible assets, such as patents and trademarks. It is what makes a business worth buying because customers are already drawn to it.
Business owners tend to believe that hiring an intermediary is a smart way to sell a company. Is it? In this article, you’ll find out all about the pros and cons of hiring a business broker. A 7-minute read.
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.
How do you prepare your business for sale? Here is a simple framework to highlight potential change actions that help to improve salability and value of your business.
The Sales Memorandum is a key document in the business sale process. It’s the written review of the business that prospective buyers seek.
Here are some pros and cons of selling a business with or without a business broker. Make sure you weigh up all options when valuing the business, promoting your sale listing, and managing legalities.
In this article we’re going to review some ways in which you can increase the value of your business right before you sell it, ultimately resulting in a better deal.
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.
Planning to sell an online/internet business? Here are six things online (e-commerce) business owners need to do in the run up to a successful business sale.
Selling a business is a huge step, and it's important to have the right mindset throughout the process. Try these mental preparation techniques to make the sale process seamless and emotionally appealing.
While there is always a market for selling your business, you may want to look for advice about ways to do it correctly, to make the most out of the sale.
If you are a business owner and retirement is near, you may consider selling your company. Here are a number of things you need to take care of during your retirement funding sale.
In this article, Justin Osborne shares his useful tips on how to sell a financial business from start to finish.
There are so many challenges to selling a business, but some of them have a much bigger impact. In this article, we explore the most common ones so that you can avoid them and maximize your ROI.
If you are thinking of selling your company, then there are some ideas to brainstorm. Here are seven important things to be careful about and pay attention to before selling your small business.
If you run your business without the mindset of selling it one day, you may be negatively affecting your chances of getting a profitable sale eventually, whenever you decide to put it on the market.
Finding a buyer is no longer just about looking at a company's profits. Today's investors are interested in putting their money in businesses that are also socially and environmentally responsible.
When selling your company, and make it happen fast, you may want to come up with incentives to persuade willing buyers to check your investment out.
Thinking about selling your business in lockdown? Even if your business (was) well-sellable, here are the challenges you’ll need to overcome to get it sold.
When it comes to selling your business to a supplier or vendor you must definitely seek to get the most value. You can’t just accept any deal out there but really consider a number of things way before you let it go.
You may wonder whether to sell your entire business or a portion of it. To sell a part of a business, such as a company unit, department, or a shop, you will be selling a list/portfolio of assets (tangible and intangible).
Going to Market
Where can you sell your business in 2020? Which websites to consider for an online listing and what are the criteria to compare them? This is a review of top business-for-sale marketplaces and websites.
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.
How to sell a business that is losing money? Read this guide about your options for sale in general, plus selling a business by an auction is discussed.
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.
As a small business owner, you can offer your business for sale by auction. Done right, auctions can gain sellers even higher selling price than their minimum asking price. The best part is that the terms of the auction sale are usually more beneficial to you, the seller.
Selling your business? Read this article about how companies with different type and size are typically marketed and sold. Online business-for-sale advertising platforms and marketplaces introduced.
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.
Read how to filter prospects from suspects during business sale process. What is effective communication, which information to provide, and when.
When selling your business, get started by thinking yourself into the mind of a potential buyer. What will be at the top of their list of considerations? Read how to prepare your business for a successful sale.
Sellers of their businesses often make common mistakes. Some of the top mistakes, such as incorrect valuation or lack of preparation, can be found in this article.
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 sale process you will be receiving enquiries from potential buyers. However, and as with so much else in life, it’s the detail that counts.
Do you own an established business that you are thinking about selling? Dreaming about retirement? If you are getting ready to sell and you are not quite there yet, then this article is for you.
When you advertise your business for sale it's important that you balance an effective marketing strategy with maintaining confidentiality. Here are some helpful tips to follow when you're writing your sale advertisement.
Lot of entrepreneurs in Singapore intend to sell their organizations, but many don’t know how to negotiate the best deal. Learn about Singapore and how to sell your business in this country.
In this in-depth guide, Leon Collier will show you how to sell your business quickly at the highest price. Strategies, tips, and FAQs are addressed in detail.
In this guide, we’re going to talk you through everything you need to know on how to define the worth of your online business and how to have the best-selling experience possible.
The market for buying and selling businesses has grown rapidly and got a life of its own. As a seller, there is a blueprint that you can follow to ensure that your business is marketable and that you achieve the best possible price.
In this post, I’m going to run through some key tips for marketing an ecommerce business for sale, setting out how you can get more eyes on your store and present it in a way that maximizes its perceived value.
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.
As the seller you may want to draft 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 provided.
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.
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.
Learn how seller financing works for an owner selling his/her business. Pros, cons, and risks addressed with owner-funded business sales. Tax benefits of owner financing addressed.
Learn how to sell your business tax-efficiently via installment sales, a common method of seller financing. Special aspects with sole proprietorship businesses, limited companies, and corporations are addressed in detail.
This is a guide to selling business assets vs stock (shares). Learn how it works with different types of business. Tax implications as well as seller interests vs buyer interest are discussed in detail.
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.
If you are a business owner and you are planning to sell your company, then you need to inform staff, i.e., your managers and employees about the intended sale. Read how to prepare your communication letter to the staff.
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.
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.
On the term sheet, the buyer will list all their conditions and terms for buying the business. It will include clauses such as price and payment terms. The term sheet shall be followed by seller and buyer if a sale were to take place.
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 to finalize the buy-sell agreement. Also known as Proposal to Buy a Business, or Offer to Purchase a Business.
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.
A lease-purchase (lease-to-own) is one of the most unique ways of selling a business to an interested buyer who might not have the means to buy at the moment but looking to own an existing investment.
Selling a business, required legal documents discussed: Non-Disclosure Agreement, Letter of Intent, Term Sheet, Business Sale Agreement, and Bill of Sale.
When selling a business, it is common for the buyer and seller to utilize the services of a third-party escrow agent. An escrow holdback is another type of account that is sometimes used for the sale of a business. Read more.
When selling a business, an Earn-out (or Earnout) is an arrangement in which the seller finances the purchase and the buyer's payments are based on the earnings/profit of the business. Read about benefits, pitfalls and tax implications that are related to earnouts.
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.
What happens when a business is sold to the wrong person? What does it mean to allow the wrong individual acquire your investment of many decades? Read the story.
In this post, Rodney Laws addresses a set of key tips for protecting your personal data, as well as important files while you’re selling a business.
There are lots of taxes involved that can impact the worth of the sale. Here are a few ways to reduce the amount of tax you pay when selling your business.
Capital gain tax occurs when a company owner sells its asset (business) for a higher price than they purchased it. Learn how to reduce (or even avoid) capital gain tax when selling a business.
If you are looking to sell your business this year, then there are a number of things you might want to consider. Of course, the selling process might not be clear as you thought it would, especially the legal considerations you need to pay attention to.
Read about in-exhaustive things expected in any background check not just of the potential business owner but corporate entity involved in the acquisition. Though screening a potential future owner of your company cannot be done slackly or hurriedly.
Creating guides to your business processes and your brand identity can raise value of your company before you sell it. And setting up a consultation service will yield additional income.