OR
Why am I selling the business and what do I hope to gain?
|
RMBA has assisted many business owners to sell their businesses and turn their sweat and work into something else. Something else? Why not money or freedom or legacy? Because many motivations exist for selling and for every motivation a desired outcome is expected. As a broker, it is important to understand why, when, and on what terms so the desired outcome is achieved.
PITFALLS to avoid: Sales under duress is never good for seller. This means taking what you can get regardless of what you desire.
Undervaluing is common. Having the time to find the right fit for a properly valued business is critical.
Poor tax planning. What matters is usable money to the Seller. A tax assessment for any deal structure is critical.
Stressing out during the process. Selling a business is a process different from any other. We try to simplify the process and apprise Seller of what is happening and what to expect next. We require both parties to have legal counsel which on the surface may seem complicating, but in the end makes for a better transaction and helps avoid down the road legal issues.
Loss of confidentiality. This can cause hurt feelings, employee stress, plus harm relations with clients and vendors.
What should be done?
We need a PLAN. Planning helps avoid the pitfalls.
First, as a broker, RMBA must be absolutely clear on your motivation, timing and expectations. Do you need to maximize cash for purchase of a retirement home? Trip around the world?
Do you seek an annuity? Monthly payments for years to come with measured risk?
Do you seek a legacy wherein family shall receive portions of the proceeds in either cash or over time? Possibly a charity?
Do you seek to protect/reward long time loyal employees?
Are you faced with personal or family health issues that affect timing of the sale or use of the proceeds?
What options exist for structuring the sale? Real property for sale? Lease? Lease option?
Do we need to clean up records to stand the scrutiny of lenders?
Who are the owner/shareholders of the company? What are their expectations? Do issues exist that must be addressed before marketing?
Do you have a CPA/ financial planner? Typically the proceeds represent a large portion of seller’s net worth. Any sale should be in concert with long term financial plans.
We are often asked, "How much is it worth and how much do you charge?" The answer is: It is easy to determine an objective range of values for price. The skill lies in turning these values into your objectives. Our past clients will tell you we earn our fees and then some.
An adage exists in the business brokerage industry. Simply said- You name the price and I will name the terms. Terms and structure of an acquisition determine ultimate value to the parties.
Our process requires a clear understanding of motivations and the time to achieve them. With a good PLAN we can achieve your goals. | 
