Selling

The asking price should be based on a professional business valuation that considers factors such as the company’s assets, earnings, cash flow, growth potential, and market comparables. Working with a business broker like HPBB or an M&A advisor can help ensure an accurate and defensible valuation.

The typical steps include preparation (financial statements, legal documentation, etc.), valuation, marketing the business, screening buyers, due diligence, negotiating terms, and closing the deal. Proper planning and guidance from experienced advisors is crucial.

Focus on increasing profitability, formalizing operations and processes, solidifying customer relationships, ensuring compliance, settling disputes, and assembling comprehensive records and documentation. Presenting a well-organized, profitable business is key.

Seller financing, where you provide part of the purchase funds as a loan to the buyer, can make your business more affordable and appealing. However, it requires careful structuring and increases short-term financial risk. Many sellers are open to reasonably financing 10-30% of the sale price.

Business owners typically face capital gains taxes on the sale proceeds. Tax liability can be minimized through strategies like structuring the sale as an asset sale, utilizing available exemptions/deductions, deferring taxes via installment sales, or establishing an exit strategy well in advance. Early tax planning is advisable.