Selling your business – a team approach.

A saying often attributed to Abraham Lincoln goes: “A man who acts as his own lawyer has a fool for a client.”  This sentiment also applies to anyone selling a business.  To obtain a successful transaction with the least amount of drama and risk, it is usually best to employ a team of experienced advisors who know as much about selling a business as an experienced buyer (and his team) know about buying.

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A serious buyer is financially prepared

In today’s environment of tight money, you must be financially prepared to purchase a business and be able and willing to demonstrate your ability to buy.  No buyer wants to waste time investigating an opportunity that is beyond reach and no seller wants to waste time with a buyer without the financial resources to buy.

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Sellers: Make It Easy for Someone to Buy Your Business

Small businesses don’t go on forever.  Owners eventually retire or move on to other interests.  Businesses are passed on to children, sold, or simply shut down.  If you start to position your business for sale today, you will ultimately sell it more quickly and for more money, and make more in the time before you sell.

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Cash flow, Terms, and Pricing

A basic principle of pricing a small business revolves around the cash the owner receives from the operation of the business.  Often businesses are priced based on a multiple of cash flow: a “rule of thumb”.

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Are you serious?

At the beginning of a new year, many business owners ask themselves if this is the year to sell.  There are three good questions a business owner should consider before selling his or her business.  

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Why people buy businesses …

… and why someone may pay a higher price for yours.

The most obvious and most common reason is cash flow; but cash flow alone is seldom the sole reason people buy small businesses.  Usually there are many reasons, but they are almost always in these few areas:

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