A Boutique Firm Focusing on Consulting & Ventures

Share

Things to Check Off Before Positioning Your Company for Sale

Things to Check Off Before Positioning Your Company for Sale

There are several housekeeping items to do before selling your business.

You want to make sure the business is as transferrable as possible.

Some things you will want to do in advance while others you will postpone until you have a deal in hand.

A few things to make sure of are the following:

  • Do you own? If so, is the commercial real estate necessary for the deal? Are there restrictions of any kind preventing a sale?
  • Do you rent? If so, will the landlord let you out of the lease? Will they accept a buyer/tenant. I can’t tell you how important this is and you want to get ahead of this rather than try to be behind it. You do not want to line up a buyer only for the landlord to nix it. Landlords can blow deals. You want to know if you have an easy to deal with landlord or if they are difficult. If they are difficult, you might have to buy out the remainder of the lease (which could make the sale meaningless if the sale value is less than the remainder on your lease), or negotiate for a settlement. Otherwise, you might be able to have the buyer assume your lease and get a release form from the landlord upon assumption so you are not still on the hook after you sell.
  • Do you have any debt on the business? If so, this might have to be cleared before the sale. Otherwise, it can be cleared from the proceeds of the sale. Depending on the state, you may not be able to sell the business (legally speaking) if there are any UCC’s filed. UCC’s are like liens on the assets/business and they have creditor rights to be paid off. Run a UCC search on the business for $100-$200. If you have any UCC’s, try to negotiate a settlement where you get a UCC removal at the minimum and a “PAYOFF” upon payment as best case scenario. If you have multiple UCC’s this can complicate a sale, because you won’t know which lender will collect on the sale, especially if the sale is a liquidation worth less than the summation of the debts. Generally, UCC goes off of first in time rights, meaning the first to file gets seniority up to the dollar amount owed. Every situation depends on whether you should pay the debt off first, or wait until the sale goes through to pay them off. You also want to avoid capital gains tax and pay the debt off directly from the proceeds/escrow and eliminate any tax gray area.
  • Do you need authority or approval from anyone to sell? Such as a parent company, franchisor, or anyone else related to receiving royalties, rights, or anything else that would make you have to go through them first.

These are all things that can complicate a sale and each situation should be handled on a case by case basis. As professional business brokers, we can guide you through these navigational hurdles.

Please reach out to us if you are interested in working together by calling (800) 773-1523 or emailing acquisitions@jarbly.com. 

Share post:

Leader in Business Consulting with Expertise in Representing Sellers & Buyers on Deals

Jarbly is a leader in business consulting with expertise in helping with revamped strategies, enhancing valuation, positioning for an exit, and business and real estate sales.

Contact Us

* indicates required

SIGN THE NDA

View Listings

© 2024 JARBLY LLC is a national brand operating through itself as a Limited Liability Company in the State of FL and works with a number of professionals located throughout the country to provide client related professional services. JARBLY LLC does not guarantee the accuracy of any of the information disclosed in this website or any materials sent including listing information including but not limited to details surrounding a business or listing or property. It is important if you transact with JARBLY LLC in any capacity, you consult a legal professional. The officers, agents, directors, or principals of JARBLY LLC are not licensed attorneys. While the principal of JARBLY LLC is a licensed real estate associate, he is not an attorney. JARBLY LLC is not a registered broker-dealer under U.S. securities laws. For more details on the nature of working together please review our disclaimer at http://jarbly.com/disclaimer and make sure to consult professional legal counsel regarding transactions to be in compliance in accordance with relevant local regulatory and legal requirements.

This website from JARBLY LLC does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service by JARBLY LLC or any other third party regardless of whether such security, product or service is referenced in this website. Furthermore, nothing in this website is intended to provide tax, legal, or investment advice and nothing in this website should be construed as a recommendation to buy, sell, or hold any instrument or asset or to engage in any investment strategy or transaction.

This website is operated by JARBLY LLC with registered office in Boca Raton FL 33496, United States of America.

DAILY POST FROM JARBLY

Follow JARBLY.com for Daily Content on Business Advisement, Real Estate, Disruptive Ventures, etc.


UP TO DATE DAILY POST FROM JARBLY

Are you a realtor? Ever wanted to join a boutique brokerage with frequent 1 on 1 mentorship, connections, and a very personal experience.

Joshua Blank the founder of Trend came from big box corporate brokerages to form his own boutique brokerage called Trend Realty. Shortly after he created the brokerage, I joined immediately. I saw the writing on the wall. A better way to advertise and market as a brokerage for realtors as opposed to the burden all on the realtors themselves.
He saw the dinosaur thinking they deployed and how real estate was changing.
As Wayne Gretzky says, skate to where the puck is going, not where it is currently.
Long over are the days where someone calls a realtor to use that realtor. Real estate has changed because everyone has the apps on their phone and the market including the properties you have access to on MLS are also at their fingertips. They want to see a property they found. You have to be the realtor who gets in front of them when they’re ready to make a purchase. We have systems that deploy where the puck is going.
With Trend you get the following:
  • Access to High-Quality Leads that Get Texted to Our Agents
  • Proprietary Tech
  • Centrally Located Offices
  • Weekly Training
  • Full-Service MENTORSHIP with years of experience - assistance with showings, exclusive access to high profile professional networks
  • Weekly Zoom Calls focused on training, learning from experts
  • Survival Guide and Business Plan - A proven path to success
  • Social Media Expert on Staff
  • Transaction Desk File Review & Management
  • Assistance with Administrative and Paperwork
  • Agent Transaction Training - Videos, Facebook Group, etc.
  • Brokerage has Q&A videos and helpful toolbox kits to help agents.
  • Agent MLS Training - Videos, Facebook Group, etc.
  • Access to High Quality Title, Mortgage Services
  • Trend Facebook Group for Networking, Videos, and Questions
  • Trend pays their agents at closing, with their CDA program
  • E & O insurance on transactions
  • Zero Monthly Fees to Agents
  • Favorable Splits to Agents
  • Creative Structuring on Deals
  • Introductions to High Quality Mortgage Companies and Lenders to Get Deals Done that Other Brokers Wouldn't Be Able to Do
  • Motivation Including Weekly Progress
  • Business Cards, Marketing Materials, Promotional Assistance etc.
  • Off Market Deals and Commercial Opportunities
  • Seller and Buyer Leads of Businesses and Commercial Opportunities
  • Direct Access to Us for Qs and As to Help You on Deals and Scenarios
  • Training on Marketing, Systems, MLS Search

Looking forward to hopefully having you on the team and amplifying your real estate career.

JOIN THE JARBLY TEAM AS A REALTOR - COMMERCIAL AND RESIDENTIAL OPPORTUNITIES

This will close in 0 seconds

Play