Early in a business sale you will want to address the structure of the purchase. Buying or selling a business is one of the most important business decisions a person will make. For this reason, it is important that you not wait until the last minute to structure your deal. Here are some significant questions that you will need to answer.
What Is My Lowest Price?
You need to know what the lowest price is that you can accept with a given offer. When the right offer comes in, you need to be ready.
What Are The Tax Implications?
You will want to consider the tax consequences of any sale. You need to work with a professional so that you can understand the tax implication of any decision you make.
What Are The Interest Rates?
You will need to know what an acceptable interest rate is for a seller financed sale.
Are There Additional Costs Involved?
Do you need to pay off any unsecured creditors? You will also need to determine if the seller plans on paying for a part of the closing costs.
Will The Buyer Need To Assume Debt?
Long term and/or secured debt are no small matter. Clarify this point well in advance.
The process of buying or selling a business requires dedicated, professional attention. EBIT will save buyers and business owners money by helping them avoid costly mistakes.