Sell a business
If you are the owner of your own business, whether it be a Sole Proprietorship, Partnership, S Corporation, C Corporation or an LLC or LLP, then you know what its like to be the first one to arrive in the morning, the last one to leave in the evening and to make sacrifices that may go unnoticed by your staff to keep the ball rolling by keeping the invoicing active and the receivables flowing in. If your business is a family business, then you may face some additional unique challenges to continue as a healthy business entity.
Some business owners are concerned about disclosing their private business information to a business broker so we have developed a Seller Confidentiality Agreement Form. This form ensures complete confidentiality between the business seller and The MKL Team. You may download the Seller Confidentiality Agreement Form here.
Family businesses do not tend to outlive their founders. At any given moment, 40 percent of family businesses are in the process of transferring their ownership in some manner including outright sale of their business. However, many of these transfers fail due to common triggering events like retirement, disability or death of the business owner. A business that took decades to build can be destroyed overnight if a plan is not in place timely enough to circumvent these triggers.
There are many reasons business owners may decide to sell such as:
- Relocating to another geographical area
Today may be the day when you decide that you would like to “take some money off the table”… in other words sell all or part of the business you have built, take the money and be able to move on to another phase of your life.
The MKL Team will sign a Confidentiality Agreement with YOU and give this to you to show their sincerity in keeping your information private.
Selling your Business
Selling your business is not something that will happen overnight. This is a sensitive complex process that when done right not only finds you the RIGHT business buyer, but also protects you from worrying about the sale being disclosed to your employees, suppliers, customers, clients, patients and competitors prior to the time it is necessary for them to know.
Definition of a Small Business
The definition of a small business is any business with annual revenues of $20,000,000 or less. The attributes of the perfect small business to sell are that the business:
- Has a reasonable asking price.
- Has reasonable sales.
- Seller has discretionary cash flow of $60,000 or more.
- Seller has a compelling reason to sell.
There are two (2) types of business sales... do you know which is best for you?:
- Asset Sale.
- Stock Sale.
|Which is the best business sale type for you?
||Which Businesses are eligible?
||What the buyer gets
||Sellers Tax Treatment
||All assets, but only those liabilities specified in the contract
||Most gains taxed at ordinary tax rates; gains on goodwill are taxed at capital gains rate
||S and C corporations only
||All assets and liabilities
||Entire gain taxed at capital gains rate
The right way for you to sell your business depends on many factors that are part of the business evaluation process that you should go through as part of your strategic plan that will help you maximize the value of the business you are selling. This is not something you should do on your own as you want to make sure that once you have sold your business, you and your assets are protected from any future problems relating to this sale.
Learn About the Business Evaluation Process >
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