Article Summary: 4 tips for compiling a list of buyers for your business | The Business Journals

Rachel Flaskey  Jul 7, 2016, 7:05am EDT

This article has been thrifted to just it's key points.  Very simplistic article, but two very important considerations when selling your business.  If you would like to read the entire article, click on link at bottom of the summary - Eric J. Gall

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A business sale will take up to a few months to more than a year.  Planning should start well before.  Two key steps in your plan are:

Compile a list of potential buyers

A key step in planning is listing the potential buyers. Consider the following:

• Family members?
• Current management or employees?
• Competitors?
• Private Equity Groups?
• Individual Investors?

2. What outcomes do employees face for each type of buyer?  Ensuring you are at peace with how they will be treated once the transaction is over is may be very important to you.  Remaining with the business for a period of time following the sale to transition new owners is one way to help manage post-sale employee relations.

Consider the tax implications

There most common deal structures are asset sales and stock sales:

• Asset sales are usually most tax advantageous for the buyer
• Stock sales are usually most tax advantageous for the seller. 

Both can command different prices for the exact same business simply due to certain tax benefits received by the buyer or seller.  How the sale is structured will generate tax benefits or liabilities. Work with your CPA or Tax Attorney to create a fair deal structure for your transaction.

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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com or my personal website at www.BuySellFLbiz.com.