• Wed, Sep 15, 2021
  • How To Sell Your Business: What To Do Before, During, And After The Sale
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  • Click here for a link to the full article by Kristin McKenna, published in Forbes on May 4, 2021.

    The time has finally come: you're ready to sell your business. Planning for the sale of a small business may seem daunting. Perhaps you're not sure where to begin or how to go about selling a business. To make the process as easy and profitable as possible, you'll want to start planning early. Having time on your side can really pay off when selling a business. Whether you're ready to retire or just move on to a new venture, here's a primer on how to sell your business. 

    How to sell your business: key steps before the sale

    1. Get organized and know your numbers
    2. Gather your team of advisors
    3. What's your business worth?
    4. Define your goals and financial needs

    Here are some other tips to consider before the deal closes: 

    • Get potential buyers to sign a non-disclosure agreement
    • Work with your business advisory team to make sure you're not disclosing more than you should early in the process
    • A letter of intent (LOI) is a mostly non-binding document outlining the proposed terms of the deal. The purchase is still far from completion!
    • Time is your enemy - changes inside the business (departure of key employees) or outside (regulatory risks, industry shifts) can kill the deal
    • Work with your M&A attorney and CPA to discuss the tax implications of different deal structures and your possible tax liability (examples: asset vs stock purchase, Section 1202 gain exclusion, state tax implications)

    Sold! What to do with the money from the sale of your business

    As a business owner, your focus has been on running and growing the company. When selling your business, it's imperative to take steps to plan for your personal financial future.

    Are you ready to put together your team of advisors? Contact me to discuss.

    Steve Niehaus, MBA, CBI, CM&AP

    [email protected]