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Sell Your Business
It is more than just important to know how, when, and how much to sell your business for. There is a big difference between properly preparing your assets to be sold and putting a for sale sign on the front door. Knowing the difference can pay big dividends.
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Seller Financing |
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With as much as 90% of the sales of small businesses involving at least some seller financing, it may be unrealistic to expect to receive a lump sum payment. Yet financing can be tricky, as agreeing to a long period of payments entails the same type of risk as owning the business and depends on the business' future success. Alternatives may include getting the buyer to use non-business assets as security for the loan. |
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Employee Stock Ownership Plans (ESOP) |
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One way to sell the business to your employees is through an Employee Stock Ownership Plan (ESOP). ESOPs are tax-qualified employee benefit plans that invest primarily in stock of the employer. Significant tax advantages may be available to both an individual selling the business to an ESOP and the employees participating in the plan. The many tax incentives and benefits of employees having ownership in the business make such plans attractive even when business owners wish to sell only part of their businesses. |
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Sales Agreement |
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Checklist of items that must be on the written sales agreement. |
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Finding A Buyer |
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Once you've decided how much your business is worth, the next step is to find a buyer. |
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