Selling or Buying a Small Business/Selling a Business

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Question
What is the most important thing to know when getting ready to sell your business?

Answer
The most important thing to remember is to have your financial statements in order and properly prepared by a competent professional. If you don't have proper documentation, it will be difficult to convince a potential buyer of the value of your business.

Make certain you can provide accurate P and L statements for at least 3 years, or less if the business has been operating for less than 3 years. In addition, have the necessary tax returns to augment what your P and L statements show.

Most business owners have a variation between their Profit and Loss docs and their tax returns. The difference lies in the discretionary income of the seller. The business broker who prepares your selling packet will go over this with you in detail, and provide a recast financial which shows the money your business is really making.  

Selling or Buying a Small Business

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Rhett Kniep, CBB

Expertise

I advise others on how to value a business, how to sell a business, and how to buy a business, and give guidance on critical issues such as negotiation and growth strategies. I have knowledge and experience in real estate investing, including company entity structures and raising investment funds.

Experience

I have been a licensed agent and broker for over 12 years, selling commercial real estate, residential real estate, and businesses. I am a licensed building contractor of more than 20 years, and have both designed and built commercial and business structures, in addition to selling them.

Organizations
California Association of Business Brokers, Contractor's State License Board, CA Association of Realtors, Better Business Bureau

Publications
The Contractor Investor, published by Phi Logos Publishing 2011, by Rhett Kniep (book on real estate investing for building contractors) Ezine Articles Diamond Author www.Centurion7.com Blog

Education/Credentials
Certified Business Broker, California Association of Business Brokers, AA communications and am a student at Lincoln Law School in Sacramento. I have done numerous trainings over the years in real estate investing, real estate sales, and marketing.

Awards and Honors
Stormy Sebring College scholarship, Service Award Good New Rescue Mission, Film School certificate

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