Ducey: On both sides you've got a lot of desire. On the
Ducey: Obviously you see some of the more sexy stories out there with the Internet companies and energy companies and things of that nature, but beneath that a lot of
If a business posted a loss in any given year, particularly during the recession, is there a way to improve how that looks to a potential buyer? Ducey: The longer you can prove that your revenues are back to where they were or as close to where earnings were in '06-'07, the better. If you're not there yet ... you may have to do some sort of earn-out where the value of your company will only be determined, let's say, three to four years after the purchase. Most small-business owners are not used to reading complex financial contracts. What's important to know?
Ducey: Most people only go through this once, so make sure you have an experienced team that will go through it with you. You'd be surprised how even one tax clause could make a tremendous difference to the value you're going to receive from selling your company. From a legal perspective, as much as you say "This contract or note is going to be secured by the assets of this business," do you really want your business back after this person has been running it into the ground the last 18 months? No. Make sure that your interests are aligned with the interests of the buyer. To contact the writer of this article, click here: Laurie Kulikowski. To follow Laurie Kulikowski on Twitter, go to: http://twitter.com/#!/LKulikowski >To submit a news tip, email: email@example.com.
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