Information and Term Sheet

One of the first things a seller can to do to move toward a transaction is to put together, with your trusted advisors, an informational and/or term sheet that identifies the most important aspects of the business, and the starting point for negotiations with a prospective buyer. This sheet essentially identifies the seller’s fundamental statistics regarding which a buyer will be interested, and in addition, the ideal structure and terms to sell the business.

These documents serve the dual purpose […]

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Finding a Buyer or Seller for a Business

Finding a buyer or seller is often a matter of preparing to find one before you actually need to do so. If you operate with the expectation and intention of selling or buying, you can make yourself attractive and finding a complimentary partner will be easier.

One of the best things to do is to keep a file of persons who are involved in transactions regarding business well before you are ready to engage in a transaction. If you know […]

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Considerations for Buyers in Purchase of a Business

In contrast to sellers, buyers of a business have different concerns which are often in conflict with the concerns of the sellers. Buyers and sellers can set the tone of the interaction by either approaching the situation as an opportunity to help each other, or as an adversarial situation in which the parties are trying to get an advantage over each other.

Buyers have different motivations for purchasing a business unique to their stage of life. They may be looking […]

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Considerations for Sellers in Sale of a Business

Understanding the considerations of the buyer or seller of a business is key to determining whether the sale should take place, or whether it will be successful.

Sellers are primarily concerned with maximizing the sales price, making sure they will get paid, and limiting the taxes they will have to pay on the proceeds they receive. Other considerations often include concern about the employees, the legacy of the business, the survival of the business after they leave, and even the […]

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The First Natural Presumption about Exiting the Business: Sale

It seems that whenever a business owner is presented with the questions of what they will do to exit, the first thought is: Sell the business. However, even though the successful end of a business for a particular owner almost always involves some sort of sale, there are a lot of options and variations.

Often, owners think selling the business means selling to a third party who will take the whole thing off their hands for a nice sum of […]

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Exit and Business Succession Planning: The Death of an Owner

Estate Planning
Unplanned Inheritance

When an owner dies, without specific planning, their business interest becomes a part of their estate. Without a will or directive, the assets in the estate will be transferred in probate according to state law. This transfer could also result in tax consequences depending on the value of the estate.  As far as exit planning goes, this may work adequately for a family run business where the spouse or a single heir is sufficiently involved in the business, […]

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