Blake (l.) and Lucci (r.) Selling a business can represent the pinnacle of a life’s work, provide the ability to diversify assets and the opportunity to create generational wealth. Preparation and planning will streamline the process and increase the likelihood of success. As any successful seller will attest, selling a business can be an all-consuming process, equivalent to a second full-time job for the owner and key executives. While daunting, we set forth seven proven strategies to prepare your business for sale that will reduce transaction expenses, maximize proceeds and increase the odds of closing. Before we present our list, sellers should be aware of an evolving trend in corporate transactions. In recent years, more buyers and sellers purchase representation and warranty insurance (RWI) to cover-post closing indemnification obligations. While RWI benefits sellers because it decreases the size of escrows and other holdbacks and limits sellers’ post-closure exposure, RWI carriers require buyers to conduct very thorough due diligence, increasing the diligence burden on buyer. The seven proven strategies are: 1. Advisers. Selling a business is a highly technical legal, tax and accounting exercise that requires experienced professionals who understand market terms and transactions. Some of the most expensive deals […]
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