How do I prepare to sell my business?

I’m Beth Cohn, I’m an attorney at Jaburg
Wilk and I work in the area of business transactions. Q: How do I prepare to sell my business? A: What people need to do first is to determine
whether they have a buyer for their business and a lot of times they’ll come in and they’ll
say I want to sell my business and I’ll say who are you going to sell it to? And they don’t really have an idea of how
to go about finding a buyer. Q: What if I can not find a buyer? A: Sometimes they will sell their business
and other times they can’t find a buyer so what they look at is they look at the possibility
of children coming into the business or they sometimes look at the possibility of employees
buying their business. Q: How should I transfer ownership to my children? A: Sometimes what they’ll do when they’re
transferring to their children is that they may sell interests in the business to their
children and what the parents will do is that they will decrease their own compensation
so that what they’re getting is payments for their business interests instead of getting
paid salary. And so that works out really well and it creates
the cash that the parents need and it gives the children the ownership in the business. Q: What are my options outside of family members? A: The two choices are to try to find a buyer
during their lifetime so that they can at least get the liquidity from the business
and enjoy that part of their efforts and labor or after they die, it’s sometimes very difficult
to sell the business because when the key person dies, a lot of times the value of the
business goes down significantly.

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