 |
Sell a business
If you are the owner of your own business, whether it be a Sole Proprietorship,
Partnership, S Corporation, C Corporation or an LLC or LLP, then you know what
its like to be the first one to arrive in the morning, the last one to leave in the
evening and to make sacrifices that may go unnoticed by your staff to keep the ball
rolling by keeping the invoicing active and the receivables flowing in. If your
business is a family business, then you may face some additional unique
challenges to continue as a healthy business entity.
Confidentiality
Some business owners are concerned about disclosing their private business
information to a business broker so we have developed a Seller Confidentiality Agreement
Form. This form ensures complete confidentiality between the business seller
and The MKL Team. You may download the Seller Confidentiality Agreement
Form here.
Family Business
Family businesses do not tend to outlive their founders. At any given
moment, 40 percent of family businesses are in the process of transferring their
ownership in some manner including outright sale of their business. However, many
of these transfers fail due to common triggering events like retirement, disability
or death of the business owner. A business that took decades to build can be
destroyed overnight if a plan is not in place timely enough to circumvent these
triggers.
There are many reasons business owners may decide to sell such as:
- Retirement
- Relocating to another geographical area
- Illness
- Boredom
- Divorce
a. Marriage
b. Partnership
Today may be the day when you decide that you would like to “take some money off the
table”… in other words sell all or part of the business you have built, take
the money and be able to move on to another phase of your life.
The MKL Team will sign a Confidentiality Agreement with YOU and give this to you to
show their sincerity in keeping your information private.
Selling your Business
Selling your business is not something that will happen overnight. This is a
sensitive complex process that when done right not only finds you the RIGHT
business buyer, but also protects you from worrying about the sale being
disclosed to your employees, suppliers, customers, clients, patients and competitors
prior to the time it is necessary for them to know.
Definition of a Small Business
The definition of a small business is any business with annual revenues of
$20,000,000 or less. The attributes of the perfect small business to sell are that
the business:
- Has a reasonable asking price.
- Has reasonable sales.
- Seller has discretionary cash flow of $60,000 or more.
- Seller has a compelling reason to sell.
There are two (2) types of business sales... do you know which is best for you?:
- Asset Sale.
- Stock Sale.
| Which is the best business sale type for
you? |
|
|
Which Businesses are eligible? |
What the buyer gets |
Sellers Tax Treatment |
| Asset Sale |
All |
All assets, but only
those liabilities specified in the contract |
Most gains taxed at
ordinary tax rates; gains on goodwill are taxed at capital gains rate |
| Stock Sale |
S and C corporations
only |
All assets and
liabilities |
Entire gain taxed at
capital gains rate |
The right way for you to sell your business depends on many factors that are part of
the business evaluation process that you should go through as part of your
strategic plan that will help you maximize the value of the
business you are selling. This is not something you should do on your own as
you want to make sure that once you have sold your business, you and your assets are
protected from any future problems relating to this sale.
Learn About the Business Evaluation Process
>
back to top
Contact The MKL Team >
|
|
Search Here for Local Insurance
Experts in your State and throughout the USA
|
|
