Protecting The Seller Note When Selling a Business
You have pride in your business, in what you have created and built over the years. When you sell your business, you do so wanting to see your company survive and thrive. There are more reasons too for not wanting a buyer to run the business into the ground, especially if you as the seller […]
How “Turnkey” Is Your Turnkey Business?
Are you getting ready to sell your business, but worry that a buyer may flounder and run the business into the ground as soon as you walk out the door? Is that one of the reasons why you are hesitant to even consider seller financing as a part of the overall sales package? If you […]
Financing the Sale When Selling a Business: Myths
Discarding Myths, Fairy Tales and Urban Legends About Seller financing when selling a business. Have you heard the one about the traveling salesman who goes out to a bar for a nightcap and wakes up in his hotel room with stitches on his lower back – and his kidney missing? Such urban legends – others call them […]
Repossessing Your Business After a Sale: Not as Bad as You Might Think
One common fear among business sellers considering seller financing when selling a business is the possibility, no matter how slight, that the buyer will default on the seller’s note and they will have to repossess the business and go through the entire sale process again. It’s a fair enough concern. After all, if you DID want to take […]
Benefits of Being the Bank for Your Business Sale
Deciding whether your business sale should be a cash sale financed by a bank or seller financed (or even some variation between those) is an important step in the process of preparing for sale. Odds are that if you are planning on selling your business, you picture yourself receiving a very large cashier’s check or wire […]
Seller Financing Series: Taxes, “Bad Books,” and Bridge Loans
Before you make any decisions on how to structure the sale of your business, educate yourself on the tax consequences, bridge loans and several tried and true methods of minimizing the amount of taxes you must pay on your sale proceeds. Take some time to meet with your CPA and your business broker to create […]
Seller Financing Series: What to Do With Debt When Selling Your Business
Another obstacle you may think exists to selling your business is making sure the buyer puts down enough money to retire existing company debt. I understand the concern. I had the same quandary when I sold my own business. We owned six vehicles with a debt of about $120,000. It would have killed my chances of […]
Selling a Business: Helping your Business Buyer Succeed!
As you prepare to sell your business, you need to think in terms of setting up the buyer for success. Inevitably there will be changes post closing- and many sellers worry that the buyer will want to make too many changes – but how can you avoid “bad” changes in your company, ones that could impair […]
Seller Financing Series: Protecting Your Seller Financing Investment With Covenants
You’ve worked hard to build your company, have it just the way you want it, and now that the time has come to sell it…well, you’re naturally concerned that the new buyer will come along and make a ton of new changes that may hurt the company. If you are providing seller financing, it feels […]
What Is Seller Financing for Business and How Does It Work?
As you work with your business broker to plan the details of a sale, it’s good to have an understanding of how seller financing works because that is part of a majority of business sales. If you are really interested in selling your business, then it’s important to be mindful of the “competition” in the […]