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Selling Q&ATips for SellingWhy Intermediary's





Tips for selling


  • Sell when the business is doing well, not when it is declining or needs help.

  • Try to improve the financials - keep everything clean and detailed.  If you have been loading the business with personal expenses and removing "cash" from the business this is the time to correct it if you want top value for your business.

  • Make sure the business is presentable - clean, neat, orderly, and all maintenance is up to date.  A well cared for business will get a premium.

  • You can sometimes double the value you will receive for your business with a proper exit strategy

  • Come to grips with the idea of completely "cashing out" on a sale is a rare occurrence. It happens, but don't count on it. A portion of the sales price of virtually all businesses is financed.   There is a simple reason for this.  Buyers want to invest the money they have wisely.  If they can leverage their cash and finance a portion of the sales price, the buyer will be able to acquire a bigger business with more cash flow.  So, Sellers should understand that buyers want to optimize their investment and financing permits that to happen.

  • Continue to run your business in a normal manner.

  • Work with your intermediary to offer the business at a realistic price and with reasonable terms.  You need to provide as much information as possible so a professional marketing package, including a business profile, can be prepared on your company.  The quality of the business profile will greatly enhance the “saleability” of a business. A package prepared by Veracity will contain the financial, operational and historical information about the business.  Informed buyers make better offers.

  • Liquidate or set aside obsolete inventory and unneeded equipment before you place the business on the market.

  • If you plan to sell your business...do not be an C-Corp.  You will regret it at tax time.

  • Meet with your accountant and/or attorney to understand your tax ramifications of the sale.

  • Understand that unless you are selling a huge corporation, most small business transactions will be asset based sales.  Buyers do not want to incur the outstanding liabilities of your company.

  • Notify your intermediary of any material changes in your business.

  • Forward monthly financial statements as soon as they are completed.  This will keep your marketing package current.

  • Do not meet with potential buyers without your broker being present and avoid direct negotiations.

  • All offers and counter-offers should be in writing and should be presented by the intermediary.

  • Put yourself in the buyers shoes.  Look at the information you are providing and how the business is presented.  Would it make you want to buy?

  • Buyers will often want to change the business.  Do not take it personally as a rejection of your style of running things.  As a new owner they want to structure things in a way that works for them.  Making those decisions is why people become business owners.

  • Take this to heart..."NO deal is done until the cash is in the bank"  Many deals that look like they are done sometimes fall apart at the closing table.


Contact Information

Postal address
1304 23rd Street South, Fargo, ND 58103
Electronic mail
General Information: rklinger@seekveracity.com
Sales: sales@seekveracity.com
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