3 Strategies for Selling a Business
There are 3 Strategies for Business Sales:
1️⃣ Asset Sale - Imagine it as a fun shopping spree where buyers get to pick their favorite items without any worries about hidden surprises. Asset sales are a treat for buyers because they can choose to not take on any liabilities.
2️⃣ Stock Sale - Picture it like a garage sale where everything, including the rusty tricycle, is bundled together. It’s like a high five for the seller, because of the potential tax perks.
3️⃣ Merger: Think of it as teaming up with your new best friend to tackle a big project together. Or it could be more like a dysfunctional family reunion.
It’s important to know your options, and here’s why:
On one deal I worked on for the sale of a restaurant, the buyer wanted to pick and choose just the assets. He was over the moon when the seller agreed to an asset sale. They shook hands on it before either of them involved any advisors.
But there was a twist.
In the midst of due diligence, it turned out that without selling the equity, the seller wouldn’t be able transfer the permits, licenses and certain contracts that were essential to operating the restaurant.
In business sales, being flexible is your secret weapon. Whether you find yourself in the role of seller, buyer or intermediary, surround yourself with experts who understand the intricacies involved.