If a purchaser of a small business does not have all of the capital to purchase the business, the seller may offer seller financing/owner financing.
When selling a business, the purchase price is determined by the separate values of the various assets and liabilities acquired from the transaction. What does this mean? In a nutshell, this means that when you negotiate a sale price for a business, you and the buyer must agree as to what portion of the purchase price applies to each individual asset, and to intangible assets such as goodwill.
There are various reasons why people are motivated to have their own businesses. According to a study conducted by Guidant Financial, 55% of aspiring small business owners believe that having their own business is a great opportunity to be their own boss. The second out of the top responses is to pursue one’s passions in their own business.
We are currently in the midst of the silver tsunami. That is, entrepreneurs aged 55–73 years old who are part of the Baby Boomer generation, are now retiring from their businesses or are currently in the stage of transitioning their businesses.
In the spring of 2020, I heard a story on the radio about baby boomers that want to retire yet are struggling with exiting their small businesses. As an entrepreneur, this struck me as odd – how can this be an issue? A few hours later I was searching online for more information and was shocked at the magnitude of the issue.
Most small business owners aim to sell their business someday. According to a PNC Bank survey, 78% of owners plan to sell their business to fund between 60% to 100% of their retirement.
When was the last time you clicked on an advertisement while visiting one of your favorite...
Data also suggests that many businesses close due to personal reasons such as illness/injury, age, or selling the business.
When you exit your business may be based on a target date you set years ago based on careful...
If you do not have an exit strategy for your small business, we will explain why it is important to have one and why a sense of urgency to create one is important for all business owners.