Just Elementary, Inc. » Entries tagged with "Selling a Business"
Ramification of Depreciation Expense and Schedule in the Sale of a Business
There are many reasons a profitable business doesn’t show as much profit on the tax returns as the business actually generates, one of those reasons that will be highlighted here is depreciation. Depreciation is a ‘non-cash’ expense recorded on a tax return that reduces the taxable profit of a business. Depreciation is a write off associated with the capital expenditure on tangible assets. Tangible assets would be physical equipment used to conduct business including what is … Read entire article »
Filed under: Business Tips
Exit Strategy Planning: When to notify your Vendors, Customers & Employees that the company is being sold
Disclaimer: Consult legal professionals for legal advice. The information contained in this post is not legal advice, nor is it to be relied upon as such. Consult legal professionals for legal advice to ensure legal compliance. Selling a business can be a complicated process involving a plethora of moving parts that have disparate agendas, from a landlord, to a franchisor (if applicable), to equipment financing companies, etc. Vendors, Employees and Customers are also critical parties to … Read entire article »
Filed under: Selling A Business
How to Prepare Your Business for Sale
How To Prepare Your Business For Sale The key to the successful sale of a business is to think ahead, and the more time you allow for that thought process, the better the outcome will be. Planning ahead is paramount to not only selling your business more quickly and more easily than would otherwise be the case, but it also enables you to sell it for more money. The forward planning can be broken down into … Read entire article »
Filed under: Business Tips, Selling A Business
Increasing the Value of a Business: Exit Strategy Planning for Selling a Business
Want to make your business more valuable? A business owner should always have the long term in mind when operating a business. This means doing things to make the business more valuable upon transfer, whether it be by sale to an arms length third party buyer, or in some other fashion. Additional Text is below the embedded Video Here are some basic things to consider in regards to Increase the Value Of a Business Customers: • Minimize Customer Concentration: … Read entire article »
Filed under: Business Tips, Business Valuation, Selling A Business
Exit Strategy Planning – Training the Buyer of Your Business
Exit Strategy Planning for Selling Your Business – Training the Buyer of Your Business Another one of the important points to consider when preparing your business for sale and when negotiating the contract to sell the business to the buyer is the seller training you will be providing. Like everything else in business, there are no hard and fast rules, but there are important factors to consider when proposing seller training terms. Which items to offer training for … Read entire article »
Filed under: Selling A Business
Seller Financing Why & Why Not to offer it in Selling your Business
Given the serious tightening of lending criteria, we’re back to the good ‘ol days of using seller financing to sell businesses again. So, what are the things you should consider in deciding whether or not to offer seller financing? (A) Why you shouldn’t offer seller financing: You need all of the money upfront You have to payoff business debts You are concerned you won’t get paid back (B) Reasons you should offer seller financing: Make buyers feel the business offering is credible … Read entire article »
Filed under: Business Tips, Selling A Business
Selling a Business, Is the Inventory a Deal Killer
When selling a business that involves a significant amount of inventory, there are steps that can be taken to make the business easier to sell. What are some of the common issues that inventory creates that can be impediments to successfully closing a sale to a buyer? Too much inventory Too much inventory can cause the asset value of the business to exceed the market value of the … Read entire article »
Filed under: Business Tips
Non Compete Covenants in the Sale of a Business
During the course of negotiating a purchase and sale contract for a business, Non-Compete Covenants need to be addressed. Just for reference, Non-Compete Covenants are also referred to as Covenants Not To Compete. Let’s get down to it. What is a Non-Compete Covenant? In the case of the sale of a business, it is contractual covenant that dictates that the selling party will not compete against the buying party by opening or partnering in a competitive business. … Read entire article »
Filed under: Due Diligence, Selling A Business
Tips to make your business easier to sell or transfer to heirs or employees
If you are going to one day sell or transfer your business to heirs or employees via an E.S.O.P., then you need to consider factors that will make the business easier to transition to a qualified buyer or even your heirs. Here are 10 tips to consider. #1. Have a good lease that is reasonably assignable. If your lease is a problem, then renegotiate it. Difficult leases are a non-starter for good buyers, they don’t want an … Read entire article »
Filed under: Business Tips, Selling A Business
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