A contingency in the sale of a business is a condition in the contract of sale or offer that must be resolved, satisfied or rectified by either a buyer or seller. If they are not satisfied then the sale will generally not go forward. Most...
The following is provided as a simple explanation of common leasing arrangements within a small business transaction. It is not intended to provide legal advice. The New Lease A new lease is created generally when the prior lease has expired or is about to and when there...
The cliché is that the key to business success is: location - location - location. If you own a business in which the location is an important reason for the success of the business, and you are considering selling, then the lease is a very...
This is a story based on a true incident - only some of the details have been changed. The buyer and seller were ready to close on a business when the buyer asked to look at the list of fixtures and equipment that were to...
Depends on whom you are asking. If you're the seller, you might say that the asking price is too low. The buyer would say, obviously, that the asking price is too high. How can they both be right? Who decides? Most sellers have an idea of...
What are the odds of your business actually selling once you have made the decision to sell? Well, if the annual sales of your business are $750,000 or less, research indicates that the odds of your business selling are only 18 percent. If your annual...
There was a study done, years ago, that showed that the reason businesses were for sale had a direct relationship to its probability of sale. Reason for Sale %Reason for Sale %Probability of Sale Retirement 10-15% 30-35% Health Problems/Death 15-20% 25-30% Partnership & Family Problems/ Divorce 5-10% 15-20% Burnout/Other Business Investments 15-20% 15-20% Under-capitalization 20-25% 10-15% Insufficient Profits 20-25% 5-10% Profit Motivated Only 5-10% 0-5% The above results point out the more...
Many people who are selling their business think that once they find a buyer, the business is sold. Unfortunately, the real work is just beginning. Once a buyer is interested, there are the inevitable questions that must be answered. After the questions are answered and...
Prepare for new management. As soon as you make the decision to sell, begin doing what you can to help the business run "on its own." The business should not, especially now, be just you! Accept the financing facts. You'll likely be financing the sale of...
Selling your business is a major decision! You have devoted your time, money and energy to building, running and operating your business. It may well represent your life's work. You have decided that now is the right time to sell, and you want the very...