Key Points to Note when Selling Your Business in Southern California
- Maintain at least three years of excellent books and records
- Interview two or three different business brokers, and choose one that understands your business
- Discuss the tax consequences with your advisors in advance – you don’t want a surprise!
- Ensure you have key employees in place to assist the buyer with the transition
- Discuss how you can enhance the value of your business with your broker – sometimes waiting an extra twelve months or so can add substantially to the value
- Make sure you tell your broker everything – surprises often kill deals
How To Maintain The Value of Your Business During These Difficult Times
- Manage cash flows with the utmost discipline
- Maintain gross margins wherever possible
- Keep Key Employees on the books
- Ensure you maintain accurate books and records
- Have a plan for how you will bounce back when the mess is over – i.e. Have a sales and marketing program in place to boost business
- Stay in touch with all key players in your sphere of influence
- Call us (no charge – no obligation – confidential) for a chat and a shoulder to lean on!
Different techniques to manage cash flow at this crucial time:
- Immediately eliminate non-essential expenditures and expenses
- Furlough non-essential employees
- Call your landlord and negotiate rent abatements/reductions
- Triage your accounts payable (honorably) – only pay the bills that absolutely must be paid. Call other creditors and explain your predicament, and keep them informed of progress. DO NOT IGNORE CALLS FROM CREDITORS – honestly answer their questions, do not tell lies, be direct.
- Manage your own personal expenses in the same manner as above.
- If you have accounts receivable, call your customers and be the squeaky wheel that gets paid. Be kind, but firm.
- Only take loans as a last resort -they are available (primarily based on two and half times one month’s payroll)
Business owners (or anyone that is interested for that matter) are welcome to ask me questions on how best to strategize getting through the many issues that are affecting them at this difficult time.
Issues such as:
- maintaining cash flow
- keeping key employees
- communicating with customers
- planning for when business returns to normal
- triaging your accounts payable
- accessing government assistance
These and many more issues can be addressed – stay safe!
Call or email with any questions or comments.