Archives for May 2017

5 Things You Need to Know About Confidentiality Agreements

Confidentiality is a major concern in virtually every business. Quite often business owners become a little nervous when it comes time to sell their business; after all, business owners usually want to keep the fact that they are selling confidential. Yet, at the same time, business owners want to receive top-dollar for their businesses and sell that business as quickly as possible. In order to sell a business quickly and receive top-dollar, it is usually necessary to present the business to a range of prospects. The simple fact is that you can't sell a business without letting prospective buyers know that it is for sale. All of this adds up to one simple conclusion: you will need a confidentiality agreement when selling a business. Let's look at a few of the key points your confidentiality agreement should cover. Type of Negotiations First, your confidentiality agreement should cover whether or not the negotiations are open or secret and exactly what kind of information can be … [Read more...]

Financing the Business Sale: 6 Questions to Know

How the purchase of a business will be structured is something that must be dealt with early on in the selling process. The simple fact is that the financing of the sale of a business is too important to treat as an afterthought. The final structure of any sale will be the result of the negotiations between buyer and seller. In order for the sale to be completed in a satisfactory manner, it is vital that the seller answers six key questions: What is your lowest “rock bottom” price? It is important for sellers to know what is the lowest price they are willing to accept before they begin negotiations. Far too often, sellers have not determined what price is their “lowest price” and this can literally cause negotiations to fall apart. What are the tax consequences of the sale? Just as sellers often don't know what their lowest price is, it is also true that sellers often don't think about the tax consequences of the sale. Interest rates are no small matter. It is important to … [Read more...]