Sale Process

Selling your business is a major decision. If you have already decided it is time to sell, you will most likely need the guidance of a professional business broker.

Sale process steps:

1. Detailed collection of information (financials, operations, lease, seller questionnaire, etc.)
2. Information analysis to determine business value
3. Marketing materials assembled
4. Business is marketed
5. Buyer inquiries and qualification
6. Sale terms negotiation
7. Due diligence
8. Closing

SBA Loans

An SBA loan is a government backed small-business loan that can help cover startup costs, working capital needs, expansions, real estate purchases and more. This type of financing is issued by a private lender but backed by the federal government.

You apply for an SBA loan through a lending institution like a bank or credit union. That lender then applies to the SBA for a loan guarantee

SBA has many different loan programs to meet different small business financing needs. Eligible businesses must be a small business under SBA’s size standards, be organized for profit, be an eligible type of business, and be able to demonstrate repayment ability. Additionally, lenders consider the applicant’s character and credit, management capability, collateral, and owner’s equity contribution. Look for the SBA Preferred Lender institutions, they get the job done faster since they have the authority to make final credit decisions on SBA-guaranteed loans.

Seller Financing

Seller financing means the business owner will act like a bank, and carry a part, or all, of the debt the buyer incurs while purchasing the business. Most of business sale transactions of closely-held businesses have some sort of seller financing included in the deal structure. There are many benefits to having that option on the table as a seller, and at times, it is inevitable in order to get the deal done.

Business Structures And Taxation

This is purely informational and should not be construed as legal advice. You should seek consultation with legal and tax experts before deciding on the business entity.

Business entity is an organization that is formed to conduct business. The type of business entity that is formed affects how a business is taxed and its exposure to liability.

Four main types of business entities: sole proprietorship, partnership, corporations, and LLC’s. Each one of these entities has its own benefits, as well as some negative consequences if not chosen correctly. Your personal accountant is a good place to start.