Pittsburgh | Raleigh Business Brokers – Cashing Out?
Business owners have more options than they realize when it comes time to sell or “cash out”. The following article summarizes several. Taking the wrong approach could have serious financial consequences for both the entrepreneur and the company. So it pays to know the pros and cons of the several ways to cash out and to think carefully about which is the right fit for your business and you.
An outright sale is probably the simplest way to exit a business. This approach makes sense when an owner’s family members have no interest in taking it over or when the owner can’t figure out how to take the company to the next level or meet challenges that may have arisen.
There are two ways to cash out: An owner can sell the company’s assets outright, or he can sell his stock in the company (or units if it is a limited-liability company). Stock sales tend to benefit the seller, while asset sales are more beneficial to the buyer.
Asset buyers are getting the company’s physical equipment, facilities and customers, as well as intangibles such as trademarks and goodwill, and as a result are generally protected against prior claims against the business. For example, the previous owners would most likely be responsible if an environmental claim were made against their former property or if an employee hired on their watch filed some sort of lawsuit.
We have a strong backlog of buyers seeking all types of companies. Contact your Pittsburgh | Raleigh Business Brokers – TM Business Brokers to learn whether or not you have a sellable business. Do not make the mistake of relying on an adviser who does not sell companies for a living. You may be delaying the sale of your business for the wrong reasons.
Now may be your time. Contact the experienced professionals at TM Business Brokers to confidentially discuss “your” situation today!