Other Business Selling Issues

9. Important miscellaneous issues related to selling a business:
   
   
   1. An organized and neat appearance will create positive perceptions from prospective Buyers
   2. Leases and contracts should be reviewed for unusual terms and transferability
   3. Consider the necessity and value of you working in the new business. Buyers reward Sellers who help to reduce risk
   4. Deal with any contingent liabilities before you put the business on the market. A Buyer will always assume the absolute worst economic consequence of such a liability. The present Owner usually has the most leverage and should resolve the situation before putting the business on the market
      
      
10. Evaluate your attorney and accountant/ book keeper as to their suitability to assist you in selling your business. Each should understand your objectives and support your efforts. It is important that they commit to prompt responses when prospective Buyers enter the picture.
    

Your attorney, in particular, should have experience with the sale of businesses. These transactions require consensus-building skills rather than adversarial skills and attorneys, without experience selling businesses, can become an obstacle to completing the deal.

Remember that you will be paying by the hour! Don't be afraid to discuss the range of legal cost you might expect.

11. Obtain the necessary legal authorization to sell:
    
    
    1. Corporate Resolution (C or S Corp.)
       
    2. Agreement between Partners (Partnership)
       
    3. Member Agreement (LLC)
    4. No formal authorization required (Sole Proprietorship)
       
       
12. Prepare yourself to sell your business by educating yourself about techniques for negotiation and reading other materials specific to selling a business (as presented in the Education-section web site).
    

(Other Business Selling Issues)
Page 6 of 7 |  <<Previous  |  Next>>