Selling a Business: Issues to Consider

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Issues to Consider When Structuring a Business Sale

Of course, the cash received at closing is the single most important consideration however there are many other issues, which we encourage our clients to consider:

  • Any unusual business agreements, issues, or relationships that need to be addressed with the buyer before the closing?
  • Is there an interest in retaining any ownership?
  • Is there an interest in continuing to run the business post-sale? If so, what is the preferred amount of time?
  • Is there an interest in receiving a seller note as part of the overall sale proceeds?
  • Would you object to selling to a competitor, as they will know of your customers, your margins, your employees, and your method of operation BEFORE the sale is completed?
  • Is there a preference to sell to a buyer who will need your staff? If so, a competitor may not need them as your operation could be folded into their existing operation.
  • Any asset on the company balance sheet that is not essential to the operation of the business that you would like distributed to you?
  • Is there a Profit Sharing Plan distribution or rollover that needs addressing?
  • Are there any tax considerations from the sale that would be prudent to discuss with an advisor before the sale?