{"id":560556,"date":"2016-02-17T02:47:50","date_gmt":"2016-02-17T07:47:50","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/10-tips-for-a-successful-sale\/"},"modified":"2022-01-31T12:43:56","modified_gmt":"2022-01-31T17:43:56","slug":"10-tips-for-a-successful-sale","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/10-tips-for-a-successful-sale\/","title":{"rendered":"10 Tips for a Successful Sale"},"content":{"rendered":"<div>\n<p>1.Sellers should find out the loan value of the fixtures, equipment and machinery prior to a sale. Many buyers will count on using it for loan or collateral purposes. No one wants to find out at the last minute that the value of the machinery won&#8217;t support the debt needed to put the deal together.<\/p>\n<p>2.Sellers should resolve all litigation and environmental issues before putting the company on the market.<\/p>\n<p>3.Sellers should be flexible about any real estate involved. Most buyers want to invest in the business, and real estate usually doesn&#8217;t make money for an operating company.<\/p>\n<p>4.Sellers should be prepared to accept lower valuation multiples for lack of management depth, regional versus national distribution, and a reliance on just a few large customers.<\/p>\n<p>5.If a buyer indicates that he or she will be submitting a Letter of Intent, or even a Term Sheet, the seller should inform them up-front what is to be included:<\/p>\n<ul>\n<li>price and terms<\/li>\n<li>what assets and liabilities are to be assumed, if it is to be an asset purchase<\/li>\n<li>lease or purchase of any real estate involved<\/li>\n<li>what contracts and warranties are to be assumed<\/li>\n<li>schedule for due diligence and closing<\/li>\n<li>what employee contracts and\/or severance agreements the buyer will be responsible for<\/li>\n<\/ul>\n<p>6.Non-negotiable items should be pointed out early in the negotiations.<\/p>\n<p>7.The sale of a company usually involves three inconsistent objectives: speed, confidentiality and value. Sellers should pick the two that are most important to them.<\/p>\n<p>8.A PricewaterhouseCoopers survey of more than 300 privately held U.S. companies that were sold or transferred pointed out the most common things a company can do to improve the prospects of selling:<\/p>\n<ul>\n<li>improve profitability by cutting costs<\/li>\n<li>restructure debt<\/li>\n<li>limit owner&#8217;s compensation<\/li>\n<li>fully fund company pension plan<\/li>\n<li>seek the advice of a consultant<\/li>\n<li>improve the management team<\/li>\n<li>upgrade computer systems<\/li>\n<\/ul>\n<p>9.Sellers should determine up-front who has the legal authority to sell the business. This decision may lie with the board of directors, a majority stockholder, and a bank with a lien on the business, etc.<\/p>\n<p>10.Partner with professionals. A professional intermediary can be worth his or her weight in gold.<\/p>\n<\/div>\n<p><a class=\"colorbox\" href=\"https:\/\/www.bigstockphoto.com\/search\/?contributor=Kzenon\" target=\"_blank\" rel=\"noopener noreferrer\">Kzenon<\/a>\/<a class=\"colorbox\" href=\"https:\/\/www.bigstockphoto.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bigstock.com<\/a><\/p>\n<p>Copyright: <a class=\"colorbox\" href=\"https:\/\/deal-studio.com\/10-tips-successful-sale\/\" target=\"_blank\" rel=\"noopener noreferrer\">Business Brokerage Press, Inc.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>1.Sellers should find out the loan value of the fixtures, equipment and machinery prior to a sale. Many buyers will count on using it for loan or collateral purposes. No one wants to find out at the last minute that the value of the machinery won&#8217;t support the debt needed to put the deal together. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":560557,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-560556","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-seller-articles"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/comments?post=560556"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560556\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media\/560557"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=560556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=560556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=560556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}