4.
Re: Accounting Firm For Sell Feb 7, 2008 4:53 PM
in response to:
FCPainter
I agree with painter concerning the idea of selling to a young accountant, provided that you receive a substantial amount (25% or more) down.
One of the most important factors in selling a business is confidentiallity. If clients hear that the business is for sale...bye-bye clients.
NO ONE should know that the business is for sale, or anything else about it until they have signed a non-disclosure agreement. Placing an ad in the newspaper that XXX business is for sale, immediately informs the customers of that business nad the business' competition of the sale. Most of the time, that very action (advertising that XXX biz is for sale) devalues the business.
Normally, the use of a business broker is the wisest move. Yes, there is a commission involved. But for this commission the biz broker guides the seller (or buyer) through the maze of all the considerations of selling (or buying). He can provide an accurate evaluation of the business in that community. He can protect confidentiality. He can find potential buyers, pre-qualify them, (eliminate unqualifed looky-Loos). He knows exactly what information should be provided initially, and what additional information should be provided as the potential purchase proceeds. He can act as an intermediary. He can minimize conflicts between buyer and seller. He can advise concerning non-compete agreements. He can arrange for escrow and contractural services through an attorney experienced in business purchase transactions.
Many times avoiding the use of a broker results in problems for the buyer, the seller, or both.
Of course, this is only my opinion.
