{"id":560568,"date":"2019-02-07T03:25:22","date_gmt":"2019-02-07T08:25:22","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbmadison\/5-big-questions-to-consider-when-financing-a-business-sale\/"},"modified":"2022-01-31T12:42:42","modified_gmt":"2022-01-31T17:42:42","slug":"5-big-questions-to-consider-when-financing-a-business-sale","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/5-big-questions-to-consider-when-financing-a-business-sale\/","title":{"rendered":"5 Big Questions to Consider when Financing a Business Sale"},"content":{"rendered":"
\"\"<\/p>\n

How should the purchase of a business be structured? \u00a0This is a point that you\u2019ll want to address early in the sale process. \u00a0For most people, buying or selling a business is one of the most, if not the most, important business decision that they will ever make. \u00a0For this reason, it is vital not to wait until the last minute to structure your deal. Let\u2019s turn our attention to the most significant questions that you need to answer when entering the sales process.<\/span><\/p>\n

1. What is My Lowest Price?<\/strong><\/p>\n

The first question you should ask yourself is, \u201cWhat is the lowest price I\u2019m willing to take?\u201d \u00a0If an offer is made, the last thing you want is to be sitting around trying to decide if you can take a given offer at a given price. \u00a0You need to be ready to jump if the right offer is made.<\/span><\/p>\n

2. What are the Tax Implications?<\/strong><\/p>\n

Secondly, you\u2019ll want to seriously consider the tax consequences of any sale. \u00a0Taxes are always a fact of life and you need to work with a professional, such as an accountant or business broker, to understand the tax implication of any decision you make.<\/span><\/p>\n

3. What are the Interest Rates?<\/strong><\/p>\n

The third factor you want to consider is interest rates. \u00a0If you get a buyer, what is an acceptable interest rate for a seller financed sale?<\/span><\/p>\n

4. Are there Additional Costs Involved?<\/strong><\/p>\n

A fourth key question to ask yourself is do you have any unsecured creditors that have not been paid off? \u00a0Additionally, you\u2019ll also want to determine whether or not the seller plans on paying for a part of the closing costs.<\/span><\/p>\n

5. Will the Buyer Need to Assume Debt?<\/strong><\/p>\n

Finally, will the buyer need to assume any long-term or secured debt? \u00a0The issue of long term and\/or secured debt is no small issue. Be sure to clarify this important point well in advance. \u00a0Also keep in mind that favorable terms typically translate to a higher sales price. <\/span><\/p>\n

Business brokers are experts at buying and selling all kinds of businesses. \u00a0When it comes time to structure a deal that benefits both the buyer and the seller, business brokers can prove to be invaluable. \u00a0At the end of the day, working with a business broker is one of the single biggest steps you can take to ensure that your business is sold and sold as quickly as possible.<\/span><\/p>\n

Copyright: Business Brokerage Press, Inc.<\/a><\/p>\n

cclimj\/BigStock.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

How should the purchase of a business be structured? \u00a0This is a point that you\u2019ll want to address early in the sale process. \u00a0For most people, buying or selling a business is one of the most, if not the most, important business decision that they will ever make. \u00a0For this reason, it is vital not […]<\/p>\n","protected":false},"author":2,"featured_media":560570,"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":[3,2],"tags":[],"class_list":["post-560568","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-seller-articles","category-selling-a-business"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/posts\/560568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/comments?post=560568"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/posts\/560568\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/media\/560570"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/media?parent=560568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/categories?post=560568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbmadison\/wp-json\/wp\/v2\/tags?post=560568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}