Blog Library

6 Things You Should Do Now to Prepare for the Sale of your Business

Posted by Jane Johnson on Thu, Jan, 26, 2017 @ 07:47 PM

2016 was a hot year for small business sales – 7,842 transactions were closed in 2016, up 8.6% from 2015 and 4.6% from 2014, according to BizBuySell's 2016 Insight Report. According to the report, 2016 had the highest number of businesses changing hands since the report’s inception in 2007. Primary factors for the reported growth are attributed to an improving small business environment, more owners looking to sell, more qualified buyers on the market, and better financing options.

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Topics: business transfer, business transition, selling my business

Putting Together Your Business Transition Dream Team

Posted by Jane Johnson on Tue, Nov, 08, 2016 @ 03:03 PM

As an owner who is thinking about selling your business to a third party or transitioning the ownership to family or other insiders, it’s important to educate yourself about the process and work with professional advisors who specialize in business transfers and have the expertise to manage all facets of your transaction.

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Topics: business planning, business transition, selling my business, Business transition team

How to Plan a Successful Business Ownership Transition

Posted by Kathy Richardson-Mauro on Thu, May, 12, 2016 @ 03:51 PM

“While 54 percent of business owners plan to leave their business in the next 10 years, 72 percent [of those] have taken no exit planning action,” according to a recent study. For most business owners, their business is by far their largest asset, and not properly planning for its transfer can put them, and their employees and family members, at risk. Being prepared is the key to success. It starts with owner education, allowing enough time to plan, seeking the best advice, and creating a Business Ownership Transition Plan (BOTP). A BOTP is a comprehensive written document that outlines how and when the ownership of a business will be transferred to others, either internally or externally, in order to achieve the owner’s long-term financial and personal goals.

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Topics: Business Ownership Transition Planning, exit planning, selling a business, business ownership transition, selling your business, selling my business, deal structure, business transition plan

Would a Private Equity Firm Be Interested in YOUR Business?

Posted by Kathy Richardson-Mauro on Tue, Apr, 26, 2016 @ 08:23 PM

There are several different types of buyers in the business marketplace, including strategic buyers that are able to realize synergies through the purchase of your business, and financial buyers, such as private equity firms (PEFs) that are looking to invest in business to get a return on their money. While some financial buyers will want to buy 100% of your business, others will buy a controlling share and allow you to maintain some ownership as well so you may get the proverbial “second bite of the apple” when the business is sold again in the future.

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Topics: Selling Your Business Externally, selling your business, selling my business, selling your business to a private equity firm

Financial Considerations When Selling Your Business to a Third Party

Posted by Jane Johnson on Thu, Apr, 21, 2016 @ 10:14 AM

When business owners consider their selling options, the financial considerations are usually the focus because most owners believe that the higher the sales price, the better. In fact, most business owners have never stopped to consider how much money they really need to net from their business sale to achieve their financial goals. They have never done the math.

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Topics: Selling Your Business Externally, selling my business, process of selling a business, selling my business to a third party, selling to an outsider, selling my business externally

14 Things You Need to Know About Selling Your Business Externally

Posted by Kathy Richardson-Mauro on Wed, Apr, 20, 2016 @ 10:14 AM

Most business owners think that they simply will sell their business to a third party because they don’t have an option for selling their businesses internally and/or they think it will net them the highest dollar amount. While selling externally is often attempted, it is not often achieved. In fact, less than one in four of the businesses that go on the market for sale actually sell. Understanding the selling process, what buyers and lenders are looking for, and how to position the business can improve owners’ chances of success. But this takes time and effort.

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Topics: Selling Your Business Externally, taxes, selling my business, selling your business in 2016, selling to a private equity firm, taxes on sale of business, selling your business to a third party

Selling Your Business? Minimize Taxes and Preserve Your Hard Earned Wealth

Posted by Jane Johnson on Thu, Feb, 18, 2016 @ 04:48 PM

When owners are thinking about selling their businesses or transferring them internally, they don’t often realize just how much of their hard-earned wealth will go toward paying taxes. After all, the tax bite is often at least 30% and can be as high as 50% or 60% of the sale proceeds! However, there are tax planning techniques that you can employ before the transaction to keep taxes to a minimum and negotiating that can be done during the transaction to minimize taxes.

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Topics: Selling Your Business Internally, taxes, selling your business, selling my business, tax planning, protecting your wealth, selling your business to family, saving money on taxes

Business Transition Academy Offers FREE Three-Part Video Course: Cashing Out of Your Business – Key Concepts

Posted by Jane Johnson on Tue, Jan, 19, 2016 @ 09:17 AM

Interested in Learning More About What a Business Transition Plan Can Do for You?

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Topics: selling my business, selling your business in 2016, Cashing Out of Your Business, Free Business Transition Resources

Are You Prepared to Sell Your Business Before the Next Economic Downturn?

Posted by Jane Johnson on Wed, Sep, 30, 2015 @ 03:04 PM

We write a lot about the specific elements that need to be included as part of a business ownership transition plan and all of the financial and non-financial things that need to be considered as part of this process. The next crucial step is pulling all of those pieces together and executing your plan, when the time is right. As we talked about in our post, 

When Is the Right Time to Sell Your Business? It Might be Now! many owners think that they’ll just find a buyer when they’re ready to retire and live off the proceeds of the sale for the rest of their lives. However, there are a number of other factors that need to be considered, including market dynamics and whether or not the business is in good enough shape to go on the market. It’s not as simple as you may think, and being prepared is the best way to help determine the timing for your transition.
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Topics: Planning Your Exit Despite a Tough Economy, business transition, selling your business, selling my business, next recession, economic downturn

Lessons Learned: Which Business Transition Option Should I Pick?

Posted by Jane Johnson on Thu, Aug, 27, 2015 @ 11:31 AM

Having options is always nice. Choices broaden our opportunities. But they can also confound us immensely. We don’t want to live in a chocolate-and-vanilla world, but we can stand in front of the ice cream counter at Baskin-Robbins and stare at 66 flavors for 10 minutes and still pick our one favorite.

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Topics: Selling Your Business Internally, exit plan, selling your business, Leveraged Management Buyout, business transition lessons learned, selling my business, ESOP, Employee Stock Ownership Plan, business transition case study