Step 3 of the sell a business process we talked
about finding and qualifying buyers up to the point
where the most qualified buyers came to visit your
business in person.
next step was for buyers to submit their Letter
Of Intent signaling their strong interest
in your business and the fact that you and the buyer
have agreed in principal on the price and terms that
will make up the sale.
this section I am going to get into the actual details
that make up the sale and how to negotiate these details
for your maximum benefit.
here's what we will cover:
To Structure Of The Sale Of A Business: When
you sell a business there are two different legal
structures the sale can take: an "Asset Sale"
and an "Entity Sale". Almost all sales of
truly small businesses (those with less than $2 million
in revenue) take the form of the "asset sale".
A lot of entrepreneurs are surprised to learn that
when they buy a small business they are not actually
buying the business - they are just acquiring a list
of assets that make up the business. Sure, that list
of assets may include the company name and the physical
location. So to the customer it will seem like the
exact same business.
from a legal standpoint the buyer is establishing
a brand new business entity. They'll just being using
the "stuff" that made up your business to
do it. In this article we will discuss how all that
we will discuss the most common types of agreements
that can be included in the sales contract: Non-compete
clauses, employment contracts and consulting agreements
to name a few.
Basics Of Financing The Sale Of Your Business:
I am sure some of you will want to skip this section
as you plan to sell your business for cash. And if
you can find a buyer capable of doing that, great!
But for the rest of you this is where we will go into
a detailed a discussion of down payments, interest
rates and the benefits of offering seller financing.
Ways To Protect Yourself When Using Seller Financing:
How to set up the financing to protect yourself legally.
Also, we discuss the importance of structuring the
repayments in a realistic fashion so the buyer is
actually able to make the payments.
To Use Seller Financing To Make The Deal More Likely
To Actually Happen Some advice about how to
effectively negotiate the financing and other aspects
of the sale so that you don't have to lower the selling
price. Sometimes financing the sale can be a blessing
in disguise because it forces you to negotiate on
things other than price. As long as you are talking
payment terms and interest rates you are not talking