https://cbimemphis.com Business Sales - Mergers & Acquisitions Fri, 16 Apr 2021 14:05:19 +0000 en-US hourly 1 https://cbimemphis.com/storage/2020/08/cropped-CBI-32x32.jpg https://cbimemphis.com 32 32 https://cbimemphis.com/are-you-ready-for-the-sale/ Fri, 16 Apr 2021 14:03:35 +0000 https://cbiteamnwa.com/?p=5476

Have you made plans for what your monthly income requirements will be for you and your family?

Have you a plan for how you will spend your time once the business is sold?

How long are you willing to commit to the new buyer to stick around after they business to help them “learn the ropes?”

Have you family members working in the business who will be impacted by the sale?

Do you have the time to screen and “vet” prospective buyers?

How will you confidentially market your business without disclosing to customers, employees, vendors, lenders that you are trying to sell?

Is your spouse/partner ready to sell? Do you have a buy-sell agreement?

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Have you got your financial information in good order to be able to withstand the scrutiny of a savvy buyer and their team of CPAs, Attorneys and Lenders?

What’s on your balance sheet?

How about the FMV (Fair Market Value) of your FF&E (Furniture, Fixtures and Equipment). Do you know all FF&E you have on hand? A physical walk through and inspection will be necessary to show a buyer what they are buying.

How about the value of your inventory, the items your company produces/provides for re-sale? Do you know how much is “good” and how much is “bad” inventory?

What about your vendors? Do you have a complete list of all vendors from whom you acquire your materials and supplies?

What about a complete customer list with concentration of sales for each?

Leases for real estate and equipment used in the business?

Copies of non-compete and compensation packages for key employees?

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Check the business sale market and your businesses position. Are businesses such as yours selling now and, if so, who are the buyers and how and why are they buying?

How are they paying for businesses such as yours?

Cash? Selling a business for all cash at closing is pretty rare and there are good reasons why that is so?

Stock? Smart business buyers will want to use their stock value to pay for your business. Why is that sometimes very risky for you and your business?

Owner Finance? Almost all “Main Street” business sales have some owner financing as part of the purchase price. Structuring to ensure you are paid is critical.

Third party financing? Banks don’t like business acquisition loans and as asset-based lenders, they will generally not finance the Goodwill of your business, something you must be paid for. How do you get paid for Goodwill?

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