Summary of tax code changes in the American Taxpayer Relief Act of 2012
For inexperienced or first time buyers, having a buyer broker may give them confidence about moving forward on a business deal. Buyers should make sure they have the right broker representing them: buyer side brokerage is VERY different than seller brokerage. Seller side brokers’ job and fiduciary responsibility is clear to all parties: their job is to package, market and sell the business for the best terms agreeable to the seller. It may appear that a buyer broker is acting as the counter point but just be aware that you may be asking them for expertise beyond their skill set or creating a conflict of interest between their benefits and your needs.
Buying a franchise does not reduce risk or mitigate the need for a thorough analysis, but unfortunately many franchise buyers assume that a franchise is a low risk concept and the operational systems are a guarantee of success.
When is too late? If you have only weeks or months left before you are forced into bankruptcy there may be little a broker can do. A quick closing can still take many months between due diligence, financing and drafting sales agreements. Generally selling a business can take one to two years--especially if the business needs to be prepped. All things being equal, you will be better off selling your business before it peaks, rather than after.
We are continually meeting with business owners who have thought about, or are exploring, selling their business. While you may have good reasons initially to consider selling your business (retirement, health, loss of interest or to pursue a new opportunity etc) those reasons may not make you a “seller”. Meeting with a business broker can help clarify a variety of issues—and allow you to make an informed decision about selling.
Innovative, award-winning business has been involved in numerous nationally renowned projects.
This Maine-based manufacturer builds a patented watercraft.
