Exit Strategies
You know you want to get out of the business someday. Maybe it will be fore retirement purposes, or perhaps to just move in a different direction with another business. Maybe it will be for health reasons, or perhaps you will want to travel the world! Whatever the reason is, let's plan the strategy before you are ready to sell!
Buy Sell Agreements, Key Man policies, and more, are ready to be implemented as soon as you are ready to start planning. Contact us now!
Streamline your budget
Contact us today get your operating budget streamlined months or even years before deciding to sell! Showing increasing profits on your financial documents maximizes the value of your business and you can leave knowing you turned over a thriving business to a new owner. Need help with budgeting? Contact us for a spending plan appointment or preview our budgeting tutorials to do it yourself!
Monthly Payments In Your Pocket are GOOD!
If you are planning to seller finance, especially in today's market, you want a solid customer base as well as a streamlined budget. We can help you increase your base well ahead of the time of the sale, so your new buyer makes more tan enough money each month to keep your payment schedule met, and get you the balloon payment down the road with ease.
Your Business is Your Database!
You know a solid and retained client base is the life force of your business! Let us help you increase that base and put programs in place for customer retention so that your business will be worth so much more when you sell. Start early, well before selling to get this in place and watch your business sell faster!
SBA Loans
"SBA-Ability" is a tool to position the buyer and the seller. They open up the business for more buyers, because it
- reduces the amount of cash required
- gives a longer loan term, reducing cash flow requirements
- gives the buyer added comfort in the valuation of the business, as it is supported by a third party, the SBA lender
- loans can include working capital (7(a))
- For the Seller
- increases the value of the business, and seller gets more cash at closing
- increases the likelihood of a sale
- reduces amount of seller financing
- can provide up to 100% cash
- For the Buyer
- Increases likelihood of success of the business
- May only require a 10-15% cash injection
We will look at all financing options, including this one, when listing a business. If the business can qualify for an SBA loan, the purchase price is probably more realistic. If not, the price might have to be reduced or the seller must be prepared to finance the buyer and get less cash at closing.
With a streamlined budget, good profit on paper, a solid client base and a good exit strategy in place, the buyer will have a better chance of getting an SBA loan, so you have less or no seller financing at all!
One thing to note for preparation: SBA only considers tax returns and not profit and loss statements. If you plan on selling in the next year or two, the more income you show on your tax returns, the greater the likelihood of the business qualifying for an SBA loan. (NOTE: the buyer also has to qualify!)
