Selling Your Business? You should consider these…….

1. Be flexible. If you are inflexible as to terms, many buyers will simply walk away.

2. Be prepared to accept a lower bid for lack of management depth, dependence on a small number of clients and lack of geographical distribution. There is generally a “small company discount” factor that buyers apply to companies with less than $3-5 million in EBITDA.

3. When you are about to get a letter of intent, make sure you let the buyer know what details you want included. These details might include timing, what liabilities you want assumed and due diligence procedures.

4. Be advised that many buyers will value Sub Chapter S corporations less than a C Corporation.

5. Make the company more visible by attending trade shows, running ads or tying up patents and trademarks. This will enhance the perceived value of your company.

6. Selling a company involves inconsistent objectives: speed, confidentiality and value– pick the two that are most important because sellers usually don’t get all three.

7. Remember that companies get stale after sitting on a shelf for a while. If you want to sell, move diligently towards that goal.

8. Don’t expect to win every point of contention. You want a deal, not a deal breaker.

9. Generally speaking, professional M&A advisors put upward pressure on valuations. Make sure to select an experienced advisor.

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