Tag: Sell

How to Sell a Small Business Fast #business #insurance #quote

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How to Sell a Small Business Fast

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How should business owners prepare for this big event?

How to Sell a Small Business Fast

Matt Kelly, managing director of North Point Advisors, a San Francisco-based mergers and acquisitions advisory firm that specializes in restaurant and consumer brand transactions, says that the best way for business owners to achieve a successful outcome is to first be really clear on transaction objectives.

“No two transactions are alike. For some owners, success is selling 100% of a business and heading for the beach. Other owners want to sell a portion of their company but remain involved in helping the company achieve even bigger goals. When you know what you want to achieve, it’s easier to line up the right prospective partners,” commented Kelly.

Kelly also says that part of the process of preparing a company for a sale is for business owners to be honest about company weaknesses long before potential buyers ask tough questions.

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“Investors will spend several months pouring over a company’s business records and market position. They will find the problems. If business owners don’t have good answers, buyers can walk away or substantially lower deal pricin,” says Kelly.

Of course, when looking to sell a small business fast, the key to a lucrative sale is attracting interest from a number of potential business buyers or investors. There are two types of buyers for prosperous businesses: financial buyers and strategic buyers.

Financial buyers include private equity or buy-out funds that like to take controlling interests in companies that have the potential for another good growth spurt. Their typical investment horizon is three to five years, with IRR financial return objectives in the mid 20 range.

Strategic buyers tend to be longer-term investors and can include any business that would benefit operationally from owning all or a significant stake of a business. Often, strategic buyers are competitors, large customers or other businesses that need to expand their operating capabilities, intellectual property portfolio or customer relationships.

Here are four more recommendations to help sell your company fast:

Develop a target list of acquirers. Even if your company will be represented by an investment banker, it’s helpful to think about likely candidates to buy your business long before you want to sell your business.

The purpose of developing this target list is to start thinking like a buyer. What attributes of your business will make it more or less valuable to potential buyers? Is it your operating facilities, know-how, ability to serve varied types of customers, or financial performance? All buyers tend to bid up businesses with industry leading profitability and a narrow range of competitors.

Visit your accountant. Every business in America has Uncle Sam as a business partner. Before negotiating any deal with prospective buyers, it’s important to learn what types of transactions may boost your tax obligations. Ask your accountant if it is more advantageous for you to sell the assets of your company (often a preference of business buyers to reduce the risk of buying hidden liabilities) or sell shares of company stock.

Prep your company for sale. In the same way home owners spruce up their homes before talking to rental agents, business owners benefit when they have the opportunity to unload unprofitable customers, cut unnecessary expenses, and build up areas of perceived business value. Do everything you can to build consistency into your company’s financial and operating performance. Also make sure all tax obligations and filings are current and your accounting records are clean for potential buyer review.

Select your support team. Take good care interviewing law firms that will represent your company during sale negotiations. Also if you decide to hire an investment banker to solicit potential buyers, make sure the intermediary has the prestige and expertise to represent your company well. The key to a good intermediary is smart deal positioning and the ability to get return phone calls.

Well-respected investment bankers also help owners sort through their options without any pressure to make fast decisions. “The decision to sell a company or enter into long-term relationships with financial investors or strategic buyers is very personal. It can’t be rushed,” commented Kelly.





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Sell your business #small #business #websites

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Sell your business

Last Updated: 9 May 2016

There are a number of factors to consider when selling your business, one of the most important being how much you would like to sell your business for.

Selling your business can be a challenging task, so it’s important to get it right. Here are some suggested steps to guide you through the process.

1. Make sure selling is the right decision

If you’re thinking of selling because of financial problems or because you find it hard to comply with government regulations, consider whether getting help or advice might put your business back on track.

You ll also need to consider how selling your business will affect your personal and financial circumstances.

Read our deciding whether to sell or close page to find out what help is available, and to make sure you’ve considered everything.

2. Decide whether to use professionals

Consider using a reputable business broker or other professionals to help you sell your business, because the process can be time consuming and complicated.

Business brokers are professionals who specialise in buying and selling businesses. They can help you understand legal and government requirements and make the process of selling your business less stressful. The services of a broker may also not be as expensive as you think. Find out more from the Australian Institute of Business Brokers.

As you’ll need to provide your broker or other professional with quite a lot of information about your business, make sure you check the professional’s credentials to ensure they’re reputable before using their services.

3. Value your business

Valuing your business is about working out how much your business is worth so you can set the right price when selling.

Read value your business for some common methods of working out the value of a business. This may include assessing the value of your assets, estimating future profits and working out how much the goodwill that you have established is worth.

4. Find buyers for your business

You can advertise the sale of your business to potential buyers through a number of methods, including:

  • business brokers or real estate agents
  • advertising online
  • your existing networks (e.g. family, friends, or employees)
  • advertising in the newspaper
  • advertising in trade publications or using your industry contacts
  • word of mouth
  • notifying customers of your sale (as long as you’re confident it won’t harm your business if your customers know you’re looking to sell).

The way you advertise will depend on your business type, industry and contacts.

Check whether there are any requirements in your state or territory about what information you need to give potential buyers.

For example, if your business is in Victoria and is being sold for less than $350,000, you must provide a Vendor’s Statement (or Section 52 Statement) to all potential buyers. This statement gives recent financial information about the business and should be provided by your accountant.

5. Negotiate the sale

When negotiating the sale, make sure the information you give about your business is accurate and true. If you say anything or provide information that is later found to be untrue, it may be considered misleading or deceptive behaviour.

You ll need to agree with the buyer on a range of things, including:

  • the sale price
  • the deposit amount (usually 10% of the sale price)
  • the settlement period
  • handover training (if any) for the buyer
  • arrangements for existing staff.

You may need to compromise on some things to get the best outcome. For example, if you re keen to settle quickly, you could encourage the buyer to agree to this by offering a lower sale price.

6. Prepare the contract

Generally, an intermediary draws up the sale contract (except in NSW where a solicitor does it). Most small business owners will ask a solicitor to review the contract, and the contract will also be checked by the buyer s solicitor.

Solicitors should check that the contract doesn t include any false statements, and covers all aspects of the sale, including:

  • all the relevant assets that are being transferred, including property, equipment, fixtures, fittings, stock, and any rights to use any names
  • all the relevant liabilities, including creditors (people or businesses that your business owes money to) and the lease of the business premises
  • responsibility for employees and employee entitlements, including whether employees are to be transferred with the sale (if the new owner isn’t an ‘associated entity’ – related to the old business in some way – they don’t have to recognise some entitlements)
  • statements about what will happen if any issues arise (for example, the buyer decides not to proceed, inaccuracies are discovered in the contract, etc)
  • any restrictions on trading in your profession after the sale (to prevent you from competing directly against the new owner).

7. Take care of your employees

When you sell your business, your employees may either:

  • transfer with the business to the new owner, or
  • end employment with the business.

It’s important to communicate with your employees and let them know whether they’ll be transferring across to the new owner or ending their employment due to the sale of the business.

In both cases, a transfer of business ends an employee s position with you, the former employer, so you must give your employees notice of ending employment or provide payment in lieu of notice.

When employees transfer with the business, you’ll need to give all relevant employee information to the new owner. There are some employee entitlements that the new owner must recognise and others that the new owner doesn t have to recognise.

8. Deal with legal matters and tax implications of the sale

Consider any insurance requirements for your business, such as run-off cover (where you are insured for any legal claims that are made after you sell your business).

Also consider whether Capital Gains Tax (CGT) and Goods Services Tax (GST) applies to the sale of your business. For example, if your business is registered for GST, you may need to include GST in the price of individual business assets or repay GST credits.

If you are selling a small business, CGT concessions may be available.

If you cannot pay your taxes on time, you may be able to get help through an ATO payment plan .

9. Transfer your business to the new owner

Once your business is sold, you’ll need to transfer your business to the new owner. This includes:

  • transferring leases, licenses and permits
  • finalising tax returns, activity statements and instalment notices
  • cancelling your ABN and transferring or cancelling your business name.

10. Look after yourself

Selling your business can be an emotional time. After all, you ve probably put in countless hours, money and energy.

It s important to know that there is assistance available. These include:

  • financial advice through the MoneySmart website, to help you take care of yourself financially
  • career advice through the myfuture website if you’re looking for a new career direction
  • employment assistance through Australian JobSearch. if you’re looking to find a job.

The Department of Human Services can also offer employment and financial assistance.

What to do.

  • Contact us by phone, web chat or our online enquiry form for personalised business support.
  • Read Change of ownership .
  • Watch the Australian Taxation Office’s webcast on selling and closing your business .
  • Speak to a professional (accountant, financial advisor or business broker) for advice on valuing your business, finding buyers for your business and steps to transfer your business.
  • Visit the ACCC website for guidelines on advertising and promoting your business .
  • Contact the ATO for any tax related queries.

Was this helpful?

Thanks for your feedback. If you have any ideas on how we can improve, we’d love to hear them.

Please provide your comments in the feedback form .

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Businesses For Sale Spain – Buy a business or Sell a business #weekend #business

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Businesses For Sale

Selling a business? We can help you

Flexible packages or a limited free trial available

Featured businesses for sale

Successful Arab Baths In Eighting Century BuildingMalaga Historic building in excellent condition, In the historic center of Malaga. Huge growth prospects Price: €1,500,000 Unique Opportunity Business In Palma De MallorcaMallorca Located in the historical old town. Fitted with high end fixtures and fittings. Established Price: Contact Seller Well Established Home Furnishings Fitted KitchensMallorca Well equipped workshop with high quality machines. Prime location on entrance to industrial estate Price: €125,000 Benavista Bowls Club (The Green Bar) In EsteponaMalaga First class Bowling Club bar with great all year round trade. Sunny outside terraces Price: €575,000 Successful Laundry Business In South West MallorcaMallorca Long established. Busy modern and well equipped laundry, located in a busy holiday resort Price: €250,000

Mid Market businesses for sale

Luxury Beach Front Hotel In Malaga For Sale Spain International Car Circuit Business In Alicante For Sale Spain Plot In Eixample Izquierdo For Sale Spain English School: Company And Building For Sale Spain Established Leisure Group Business In Marbella For Sale Spain 3 UE Registered Brands Stock Goodwill For Sale Spain See more Mid Market businesses

About BusinessesForSale.com

Born out of one man’s need to sell a business, BusinessesForSale.com started in the mid-1990s as an online bulletin board.

Since those early days our passion for introducing people who want to buy a business to those who are selling a business has grown exponentially along with the site. BusinessesForSale.com has evolved into a truly global service that connects over a million business buyers and sellers each and every month.

For 20 years we have been helping business brokers and private sellers market their listings. From cafes to construction businesses, some of our most exciting business opportunities have included the makers of Big Ben’s clock, a Chinese toll road, a crocodile farm in Thailand and even a tropical island!

We have become the world’s largest marketplace advertising 69,082 businesses for sale in over 130 countries. The website is proudly run by our team of 32 based in London, Sydney, North Carolina and Mexico City.

We’re always looking to improve the site and our service so if you have any feedback or you are looking to sell your business, we’d love to hear from you. Contact Us

Other Great Stuff for Buying and Selling a Business

Businesses For Sale also offers:

Register as a Premium Buyer Contact new businesses for sale and let sellers know you are a serious buyer. Sell your Business We have millions of business buyers searching for businesses for sale every month. You could sell your business today! Business Wanted Reach thousands of sellers with a Business Wanted Ad. Email Alerts We’ll send you the perfect business opportunity the moment it appears on BusinessesForSale.com Find a business broker, accountant or advisor Directory of professionals dedicated to helping you buy the right business. Market Intelligence Centre Browse our survey responses and learn all you need to know about the state of the business transfer marketplace.

Our latest advice features

Top 10 escapist businesses Nicky Tatley lists her top 10 business for those looking to get away from it all The future of marketing your small business – our top 5 mobile apps BusinessesForSale.com reveals their favourite mobile marketing apps The Pork Crackling Company Started as a bet between co-workers the Snaffling Pig Co has now won investment via Dragons Den and co-founder Nick Coleman is as happy as a pig in mud. Due diligence when buying a business If you intend to purchase a business, conducting a due diligence process is critical to evaluate both risks and opportunities of the acquisition. See more articles





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Sell My Business For Free – Easily Sell A Business Online With Bizdaq #business

#sell my business

#

Sell Your Business. Free

Business agents take a hefty slice of your sale price as a commission fee. With Bizdaq you cut out the business transfer agent.

You’re in control all the way. You can send and respond to messages, arrange viewings at your convenience, negotiate offers and drive your sale towards completion. Imagine selling your business in double-quick time online for a great price, at the same time saving more than £11,000 – it’s all possible with Bizdaq.

“The last time I sold my business it cost me over £10,000. Using Bizdaq means I have an extra £10,000 in my pocket!”

Here’s How Bizdaq Helps Small Business Owners
Achieve a Fast Sale Get a Better Price

Completely Free To Sell Your Business

We built Bizdaq to remove the hefty cost of selling or buying a business in the UK. Our incredible platform is free to use from start to finish!

Fast Selling Process

You are instantly notified of any activity on your sale including viewing requests, messages and offers.

What do I need to know about selling my business?

Just because you run a successful business, doesn’t mean you know everything about how to sell one, right? This is why we’ve put together a comprehensive resource bank of advice and information to guide you through every step of the process, from planning your exit strategy to negotiating a sale. Tap into our expertise in our Knowledge section.

Our team have over 30 years experience helping small business owners sell, while maximising the value of their business, so we’re well positioned to help! You can benefit from our experience at every step of your sale with our comprehensive guides that simplify the process of selling a business. We truly believe that with our guides, any small business owner can sell their business on Bizdaq and save thousands on agents fees.

Our Expert Selling Guides

  • How to prepare your small business for sale
  • Top 5 financial details that your buyer will want to see
  • How long will it take to sell my business?
  • Three tips for a fast business sale
  • The definitive guide to selling your small business

Selling My Business Frequently Asked Questions

1. How can Bizdaq be FREE?

Bizdaq was built by a team of entrepreneurs who know how expensive and challenging it can be to sell a business. We wanted to provide somewhere for business owners to sell a business without the cost or hassle of traditional options. It’s free for sellers and free for buyers, no strings whatsoever!

2. Do I have to be a certain size of business to use Bizdaq?

Any micro to small and medium sized business owner can sell their business on Bizdaq. We generally recommend that any business in the UK with a valuation of between £5,000 and £2 million would benefit from selling with Bizdaq.

3. How long will it take to sell my business?

Typically it takes between 6 and 12 months to sell a business from putting the business on the market to completing the sale. Although with the right preparation you can achieve your sale in a shorter time frame – at Bizdaq we’ve sold businesses in as little as three weeks. We generally recommend that you price your business right, prepare your key document with your accountant as soon as you put your business live and generally look to present your business in it’s best light. If you’re unsure of how to price your business view our guide here or get an instant valuation of your business using our valuation guide tool here.





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Agreement to Sell Business – Free Legal Form #business #plan #layout

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AGREEMENT TO SELL BUSINESS

Agreement made this _________day of _________, 20__ by and between ____________________ and _____________________ (doing business as _____________________) of ________________________ ____________________ (hereinafter referred to as Seller ) and ________________________________ (hereinafter referred to as the Buyer ).

Whereas the Seller desires to sell and the Buyer desires to buy the business of a certain _______________________ now being operated at ____________________________ and known as ______________________ and all assets thereof as contained in Schedule A attached hereto, the parties hereto agree and covenant as follows:

1. The total purchase price for all fixtures, furnishings and equipment is $___________ Dollars payable as follows: (a) $____________ paid in cash; certified or bank checks, as a deposit upon execution of this Agreement, to be held by ________________________. (b) $___________ additional to be paid in cash, certified or bank checks, at the time of passing papers. (c) $_________ to be paid by a note of the Buyer to the Seller, bearing interest at the rate of _____ percent per annum with an option of the Buyer to prepay the entire outstanding obligation without penalty. Said note shall be secured by a chattel mortgage and financing statement covering the property to be sold hereunder, together with any and all other property acquired during the term of said note and placed in or within the premises known as __________________________ ____________________.

2. The property to be sold hereunder shall be conveyed by a standard form Bill of Sale . duly executed by the Seller.

3. The Seller promises and agrees to convey good, clear, and marketable title to all the property to be sold hereunder, the same to be free and clear of all liens and encumbrances. Full possession of said property will be delivered in the same condition that it is now, reasonable wear and tear expected.

4. Consummation of the sale, with payment by the Buyer of the balance of the down payment and the delivery by the Seller of a Bill of Sale, will take place on or before ______________, 20__.

5. The Seller may use the purchase money, or any portion thereof, to clear any encumbrances on the property transferred and in the event that documents reflecting discharge of said encumbrances are not available at the time of sale, the money needed to effectuate such discharges shall be held by the attorneys of the Buyer and Seller in escrow pending the discharges.

6. Until the delivery of the Bill of Sale, the Seller shall maintain insurance on said property in the amount that is presently insured.

7. Operating expenses of _____________________ including but not limited to rent, taxes, payroll and water shall be apportioned as of the date of the passing of papers and the net amount thereof shall be added to or deducted from, as the case may be, the proceeds due from the Buyer at the time of delivery of the Bill of Sale.

8. If the Buyer fails to fulfill his obligations herein, all deposits made hereunder by the Buyer shall be retained by the Seller as liquidated damages.

9. The Seller promises and agrees not to engage in the same type of business as the one being sold for_______ years from the time of passing, within a __________ radius of ___________________________.

10. A Broker s fee for professional services in the amount of _________________($________) Dollars is due from the Seller to_________, provided and on the conditions that papers pass.

11. The Seller agrees that this Agreement is contingent upon the following conditions: (a) Buyer obtaining a Lease on the said premises or that the existing Lease be assigned in writing to the Buyer. (b) Buyer obtaining the approval from the proper authorities (Town and State) of the transfer of all necessary licenses to the Buyer. (c) The premises shall be in the same condition, reasonable wear and tear expected, on the date of passing as they are currently in.

12. All of the terms, representations and warranties shall survive the closing. This Agreement shall bind and inure to the benefit of the Seller and Buyer and their respective heirs, executors, administrators, successors and assigns.

13. If this Agreement shall contain any term or provision which shall be invalid or against public policy or if the application of same is invalid or against public policy, then, the remainder of this Agreement shall not be affected thereby and shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed in triplicate on the day and year first above written.





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Sell a business or buy a business with #business #services

#business for sale

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Businesses For Sale

Selling a business? We can help you

Flexible packages or a limited free trial available

Featured businesses for sale

Fantastic Canal Side Pub In Wiltshire, Long EstablishedWiltshire An historic and very popular canal-side pub, set in a glorious location enjoying wonderful views Price: 450,000 Unique Online Recruitment BusinessLondon Up and running for 8 months with over 3000+ candidates signing up and 350+ clients and 124 roles Price: 1,500,000 Established Catering Hire BusinessBuckinghamshire Local catering equipment, tableware function furniture hire business based in Buckinghamshire outside Aylesbury Price: 35,000 e-Commerce Consumer Electronics BusinessLondon I will guarantee the return of your investment within 1Year if Im kept as your Business Development Manager Price: 200,000 Freehold Gorgeous Gift And Card Shop + FlatDevon Beautiful and lovely business in a gorgeous one of a kind 17th Century, well maintained quirky old building Price: 385,000

Mid Market businesses for sale

Provider Of CCTv And Digital Surveillance Solutions Business For Sale United Kingdom Manufacturer Glass And Glazing Supplier Business For Sale United Kingdom Specialists In Niche Passive Fire Protection Solutions For Sale United Kingdom Manufacturer Of Automated Electronic Test Equipment Business For Sale United Kingdom Multi Award Winning Creative Agency Business For Sale United Kingdom Profitable Office Commercial And Industrial Fit-Out Specialist For Sale United Kingdom See more Mid Market businesses

Featured Business Brokers

Click on a logo to view

Buy a franchise

About BusinessesForSale.com

Born out of one man’s need to sell a business, BusinessesForSale.com started in the mid-1990s as an online bulletin board.

Since those early days our passion for introducing people who want to buy a business to those who are selling a business has grown exponentially along with the site. BusinessesForSale.com has evolved into a truly global service that connects over a million business buyers and sellers each and every month.

For 20 years we have been helping business brokers and private sellers market their listings. From cafes to construction businesses, some of our most exciting business opportunities have included the makers of Big Ben’s clock, a Chinese toll road, a crocodile farm in Thailand and even a tropical island!

We have become the world’s largest marketplace advertising 69,082 businesses for sale in over 130 countries. The website is proudly run by our team of 32 based in London, Sydney, North Carolina and Mexico City.

We’re always looking to improve the site and our service so if you have any feedback or you are looking to sell your business, we’d love to hear from you. Contact Us

Other Great Stuff for Buying and Selling a Business

Businesses For Sale also offers:

Register as a Premium Buyer Contact new businesses for sale and let sellers know you are a serious buyer. Selling a Business We have millions of business buyers searching for businesses for sale every month. You could sell your business today! Business Wanted Reach thousands of sellers with a Business Wanted Ad. Email Alerts We’ll send you the perfect business opportunity the moment it appears on BusinessesForSale.com Market Intelligence Centre Browse our survey responses and learn all you need to know about the state of the business transfer marketplace.

Our latest advice features

The Pork Crackling Company Started as a bet between co-workers the Snaffling Pig Co has now won investment via Dragons Den and co-founder Nick Coleman is as happy as a pig in mud. Gender pay gap average still at 18% It has been over four decades since the Equal Pay Act, but Women still earn an average of 18% less than men according to new research. National Burger Day means business: Dazy Kitchen In the last part of our National Burger Day Q A, we speak to new London start-up Dazy Kitchen… National Burger Day means business: Chuck Burgers Days dedicated to food have become an integral part of the growing ‘foodie’ culture in the UK and the hamburger has become a staple part of western culture itself. See more articles

Business Tools





Tags : , , , , ,

Sell My Business For Free – Easily Sell A Business Online With Bizdaq #business

#sell my business

#

Sell Your Business. Free

Business agents take a hefty slice of your sale price as a commission fee. With Bizdaq you cut out the business transfer agent.

You’re in control all the way. You can send and respond to messages, arrange viewings at your convenience, negotiate offers and drive your sale towards completion. Imagine selling your business in double-quick time online for a great price, at the same time saving more than £11,000 – it’s all possible with Bizdaq.

“The last time I sold my business it cost me over £10,000. Using Bizdaq means I have an extra £10,000 in my pocket!”

Here’s How Bizdaq Helps Small Business Owners
Achieve a Fast Sale Get a Better Price

Completely Free To Sell Your Business

We built Bizdaq to remove the hefty cost of selling or buying a business in the UK. Our incredible platform is free to use from start to finish!

Fast Selling Process

You are instantly notified of any activity on your sale including viewing requests, messages and offers.

What do I need to know about selling my business?

Just because you run a successful business, doesn’t mean you know everything about how to sell one, right? This is why we’ve put together a comprehensive resource bank of advice and information to guide you through every step of the process, from planning your exit strategy to negotiating a sale. Tap into our expertise in our Knowledge section.

Our team have over 30 years experience helping small business owners sell, while maximising the value of their business, so we’re well positioned to help! You can benefit from our experience at every step of your sale with our comprehensive guides that simplify the process of selling a business. We truly believe that with our guides, any small business owner can sell their business on Bizdaq and save thousands on agents fees.

Our Expert Selling Guides

  • How to prepare your small business for sale
  • Top 5 financial details that your buyer will want to see
  • How long will it take to sell my business?
  • Three tips for a fast business sale
  • The definitive guide to selling your small business

Selling My Business Frequently Asked Questions

1. How can Bizdaq be FREE?

Bizdaq was built by a team of entrepreneurs who know how expensive and challenging it can be to sell a business. We wanted to provide somewhere for business owners to sell a business without the cost or hassle of traditional options. It’s free for sellers and free for buyers, no strings whatsoever!

2. Do I have to be a certain size of business to use Bizdaq?

Any micro to small and medium sized business owner can sell their business on Bizdaq. We generally recommend that any business in the UK with a valuation of between £5,000 and £2 million would benefit from selling with Bizdaq.

3. How long will it take to sell my business?

Typically it takes between 6 and 12 months to sell a business from putting the business on the market to completing the sale. Although with the right preparation you can achieve your sale in a shorter time frame – at Bizdaq we’ve sold businesses in as little as three weeks. We generally recommend that you price your business right, prepare your key document with your accountant as soon as you put your business live and generally look to present your business in it’s best light. If you’re unsure of how to price your business view our guide here or get an instant valuation of your business using our valuation guide tool here.





Tags : , , , , , , , , , ,

Sell your business #boston #business #journal

#selling a business

#

Sell your business

Last Updated: 9 May 2016

There are a number of factors to consider when selling your business, one of the most important being how much you would like to sell your business for.

Selling your business can be a challenging task, so it’s important to get it right. Here are some suggested steps to guide you through the process.

1. Make sure selling is the right decision

If you’re thinking of selling because of financial problems or because you find it hard to comply with government regulations, consider whether getting help or advice might put your business back on track.

You ll also need to consider how selling your business will affect your personal and financial circumstances.

Read our deciding whether to sell or close page to find out what help is available, and to make sure you’ve considered everything.

2. Decide whether to use professionals

Consider using a reputable business broker or other professionals to help you sell your business, because the process can be time consuming and complicated.

Business brokers are professionals who specialise in buying and selling businesses. They can help you understand legal and government requirements and make the process of selling your business less stressful. The services of a broker may also not be as expensive as you think. Find out more from the Australian Institute of Business Brokers.

As you’ll need to provide your broker or other professional with quite a lot of information about your business, make sure you check the professional’s credentials to ensure they’re reputable before using their services.

3. Value your business

Valuing your business is about working out how much your business is worth so you can set the right price when selling.

Read value your business for some common methods of working out the value of a business. This may include assessing the value of your assets, estimating future profits and working out how much the goodwill that you have established is worth.

4. Find buyers for your business

You can advertise the sale of your business to potential buyers through a number of methods, including:

  • business brokers or real estate agents
  • advertising online
  • your existing networks (e.g. family, friends, or employees)
  • advertising in the newspaper
  • advertising in trade publications or using your industry contacts
  • word of mouth
  • notifying customers of your sale (as long as you’re confident it won’t harm your business if your customers know you’re looking to sell).

The way you advertise will depend on your business type, industry and contacts.

Check whether there are any requirements in your state or territory about what information you need to give potential buyers.

For example, if your business is in Victoria and is being sold for less than $350,000, you must provide a Vendor’s Statement (or Section 52 Statement) to all potential buyers. This statement gives recent financial information about the business and should be provided by your accountant.

5. Negotiate the sale

When negotiating the sale, make sure the information you give about your business is accurate and true. If you say anything or provide information that is later found to be untrue, it may be considered misleading or deceptive behaviour.

You ll need to agree with the buyer on a range of things, including:

  • the sale price
  • the deposit amount (usually 10% of the sale price)
  • the settlement period
  • handover training (if any) for the buyer
  • arrangements for existing staff.

You may need to compromise on some things to get the best outcome. For example, if you re keen to settle quickly, you could encourage the buyer to agree to this by offering a lower sale price.

6. Prepare the contract

Generally, an intermediary draws up the sale contract (except in NSW where a solicitor does it). Most small business owners will ask a solicitor to review the contract, and the contract will also be checked by the buyer s solicitor.

Solicitors should check that the contract doesn t include any false statements, and covers all aspects of the sale, including:

  • all the relevant assets that are being transferred, including property, equipment, fixtures, fittings, stock, and any rights to use any names
  • all the relevant liabilities, including creditors (people or businesses that your business owes money to) and the lease of the business premises
  • responsibility for employees and employee entitlements, including whether employees are to be transferred with the sale (if the new owner isn’t an ‘associated entity’ – related to the old business in some way – they don’t have to recognise some entitlements)
  • statements about what will happen if any issues arise (for example, the buyer decides not to proceed, inaccuracies are discovered in the contract, etc)
  • any restrictions on trading in your profession after the sale (to prevent you from competing directly against the new owner).

7. Take care of your employees

When you sell your business, your employees may either:

  • transfer with the business to the new owner, or
  • end employment with the business.

It’s important to communicate with your employees and let them know whether they’ll be transferring across to the new owner or ending their employment due to the sale of the business.

In both cases, a transfer of business ends an employee s position with you, the former employer, so you must give your employees notice of ending employment or provide payment in lieu of notice.

When employees transfer with the business, you’ll need to give all relevant employee information to the new owner. There are some employee entitlements that the new owner must recognise and others that the new owner doesn t have to recognise.

8. Deal with legal matters and tax implications of the sale

Consider any insurance requirements for your business, such as run-off cover (where you are insured for any legal claims that are made after you sell your business).

Also consider whether Capital Gains Tax (CGT) and Goods Services Tax (GST) applies to the sale of your business. For example, if your business is registered for GST, you may need to include GST in the price of individual business assets or repay GST credits.

If you are selling a small business, CGT concessions may be available.

If you cannot pay your taxes on time, you may be able to get help through an ATO payment plan .

9. Transfer your business to the new owner

Once your business is sold, you’ll need to transfer your business to the new owner. This includes:

  • transferring leases, licenses and permits
  • finalising tax returns, activity statements and instalment notices
  • cancelling your ABN and transferring or cancelling your business name.

10. Look after yourself

Selling your business can be an emotional time. After all, you ve probably put in countless hours, money and energy.

It s important to know that there is assistance available. These include:

  • financial advice through the MoneySmart website, to help you take care of yourself financially
  • career advice through the myfuture website if you’re looking for a new career direction
  • employment assistance through Australian JobSearch. if you’re looking to find a job.

The Department of Human Services can also offer employment and financial assistance.

What to do.

  • Contact us by phone, web chat or our online enquiry form for personalised business support.
  • Read Change of ownership .
  • Watch the Australian Taxation Office’s webcast on selling and closing your business .
  • Speak to a professional (accountant, financial advisor or business broker) for advice on valuing your business, finding buyers for your business and steps to transfer your business.
  • Visit the ACCC website for guidelines on advertising and promoting your business .
  • Contact the ATO for any tax related queries.

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How to Sell a Small Business Fast #online #business #schools

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How to Sell a Small Business Fast

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How should business owners prepare for this big event?

How to Sell a Small Business Fast

Matt Kelly, managing director of North Point Advisors, a San Francisco-based mergers and acquisitions advisory firm that specializes in restaurant and consumer brand transactions, says that the best way for business owners to achieve a successful outcome is to first be really clear on transaction objectives.

“No two transactions are alike. For some owners, success is selling 100% of a business and heading for the beach. Other owners want to sell a portion of their company but remain involved in helping the company achieve even bigger goals. When you know what you want to achieve, it’s easier to line up the right prospective partners,” commented Kelly.

Kelly also says that part of the process of preparing a company for a sale is for business owners to be honest about company weaknesses long before potential buyers ask tough questions.

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“Investors will spend several months pouring over a company’s business records and market position. They will find the problems. If business owners don’t have good answers, buyers can walk away or substantially lower deal pricin,” says Kelly.

Of course, when looking to sell a small business fast, the key to a lucrative sale is attracting interest from a number of potential business buyers or investors. There are two types of buyers for prosperous businesses: financial buyers and strategic buyers.

Financial buyers include private equity or buy-out funds that like to take controlling interests in companies that have the potential for another good growth spurt. Their typical investment horizon is three to five years, with IRR financial return objectives in the mid 20 range.

Strategic buyers tend to be longer-term investors and can include any business that would benefit operationally from owning all or a significant stake of a business. Often, strategic buyers are competitors, large customers or other businesses that need to expand their operating capabilities, intellectual property portfolio or customer relationships.

Here are four more recommendations to help sell your company fast:

Develop a target list of acquirers. Even if your company will be represented by an investment banker, it’s helpful to think about likely candidates to buy your business long before you want to sell your business.

The purpose of developing this target list is to start thinking like a buyer. What attributes of your business will make it more or less valuable to potential buyers? Is it your operating facilities, know-how, ability to serve varied types of customers, or financial performance? All buyers tend to bid up businesses with industry leading profitability and a narrow range of competitors.

Visit your accountant. Every business in America has Uncle Sam as a business partner. Before negotiating any deal with prospective buyers, it’s important to learn what types of transactions may boost your tax obligations. Ask your accountant if it is more advantageous for you to sell the assets of your company (often a preference of business buyers to reduce the risk of buying hidden liabilities) or sell shares of company stock.

Prep your company for sale. In the same way home owners spruce up their homes before talking to rental agents, business owners benefit when they have the opportunity to unload unprofitable customers, cut unnecessary expenses, and build up areas of perceived business value. Do everything you can to build consistency into your company’s financial and operating performance. Also make sure all tax obligations and filings are current and your accounting records are clean for potential buyer review.

Select your support team. Take good care interviewing law firms that will represent your company during sale negotiations. Also if you decide to hire an investment banker to solicit potential buyers, make sure the intermediary has the prestige and expertise to represent your company well. The key to a good intermediary is smart deal positioning and the ability to get return phone calls.

Well-respected investment bankers also help owners sort through their options without any pressure to make fast decisions. “The decision to sell a company or enter into long-term relationships with financial investors or strategic buyers is very personal. It can’t be rushed,” commented Kelly.





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Know When and How to Sell Your Business #business #magazine

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Know When and How to Sell Your Business

Writer, Journalist, Storyteller

October 13, 2015

John West is a serial entrepreneur in the truest sense. Prior to his latest startup, he had already built and sold two companies in very different industries. And he says that while developing an idea to start a business takes time, selling that same business is just as complicated.

West started building Whistle Sports Network in 2008 after selling his second company, Silver Oak. After the Silver Oak sale, he decided to spend time with his children. As his children started watching sports, he started to notice that the media coverage, content and delivery weren t geared toward younger generations. West started to research the media industry and decided to launch a linear cable network. Today, Whistle Sports has 315 channels and 115 million aggregate fans and followers.

During a sale, business owners have key financial and emotional considerations, like figuring out what to do once they don t own that business and developing a personal financial plan. While the lump sum from a sale can be life-changing money, it s secondary to the work as an entrepreneur, according to West.

I ve never believed you should start a company to sell it, says West. You start a company to solve a problem and do something cool. You sell it based on how the markets are doing and how the industry is doing — you can t plan this.

Nadia Allaudin, senior vice president of Wealth Management at Merrill Lynch Global Wealth Management in Century City, agrees and says that there needs to be an understanding for the impetus for the sale or walking away. There needs to be a lot of conversations about how you re going to handle this.

Once a business owner receives an offer, whether expected or not, that s when the planning begins.

Buyers can be anywhere.

West started his first company, Enstrat, an environmental consulting firm, out of college in 1989. Soon after graduating Harvard Business School, he sold the firm to a member of his managerial team in 1996 because he wanted to make a change.

The business was profitable, so we were able to finance the sale through debt, says West.

Many companies are sold to key employees since these people know and understand the business and have a passion for it.

Entrepreneurs should think about that when they re hiring people and consider grooming employees, since they may be the people to take over your business in a few years, says Tim Sabol, private wealth advisor at Ameriprise Financial in Philadelphia.

In 1999, West went on to build Silver Oak, a company that helped state governments save money. His company created a niche and was earning about $23 million in revenues. After eight years, he accepted an offer from CGI in 2005. Three years later, he started Whistle Sports. Deals can take up to a year or two to close, which can be used to plan for what s next.

Most of the time, how long [a sale] takes hinges on who the buyer is — if it s an internal candidate or a competitor down the street — and it always seems to take longer than people expect, says Sabol.

Prepare for the exit.

Leaving a business requires understanding the business s value and worth. You may need multiple valuations depending on the buyer, nature of the business and the deal. Having clear books and records helps a buyer with due diligence, and you want to have years of financials readily available so you re prepared for that unexpected offer.

There are a lot of different business valuations companies, and you want to find one that s reputable and specific to your industry, so they know your business and the cash flow, says Laurie Barry, wealth advisor at UBS Financial Services in Chicago.

Negotiate your responsibilities.

As part of the Silver Oak sale to CGI, West stayed with the company for 18 months to manage the integration of Silver Oak into the bigger business and work on special projects.

A lot of times, the company wants you there to shepherd your old employees into the new system, says Sabol.

If you re asked to stay, inquire about the length of the commitment and the expectations of that position since this will affect your future plans.

Make sure you understand what those parameters are, says Barry. If you don t want to stay on, what are the ramifications of those as well. That s really important for the business owner.

Create a plan for your finances and time.

What you plan to do with your time and how your life will look is as important as the financial aspect of leaving your business. After selling Enstrat, West moved to New York to work as a management consultant. When that firm was sold, he then started Silver Oak.

I knew I wanted to do something on my own, so I came up with the idea for Silver Oak on napkins and planned the budget for the company, says West.

After selling Silver Oak, since he had started a family, he put half of the sale proceeds towards college funds and his retirement. Once he started Whistle Sports, he invested the rest into the seed round. He also had to budget for the years that he didn t take a salary along the way. For many serial entrepreneurs, what s next isn t to just go sit on the porch, at least not for a long time. And it s tempting to use the entire lump sum for a new business.

Do some analysis to figure out how much of the proceeds you should set aside for retirement, and with the balance of the proceeds, think about how much you can risk for the next deal, says Sabol.

While some business owners have a vision for what to do next, others may decide to take some time to figure out next steps. If you don t have a plan, rediscover strengths and build your network to make a transition into something new easier. Be sure to budget for these expenses, since just rolling with it often doesn t work.

When you re an entrepreneur, it defines a big piece of your identity, and when that goes away, it s definitely a transition, says West. I didn t appreciate that after selling the first company, but you have to find something else to focus on.

Don t ever go it alone.

Find a good set of advisors who you work well with and can give you great advice, says West.

Corporate accountants, lawyers and investment bankers can help shepherd your company through a sale, and a personal accountant and attorney can assist with your personal financial planning when you do receive that lump sum. Build a team of people who commit to your business like you do because as an entrepreneur, these people will help determine your success.

If you surround yourself with capable people with different strengths and weaknesses, you can get around any obstacle, says West. That sounds sort of clich , but it s the absolute difference.





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