17 February 2021
Have you been approached to buy your company?
Have you been approached to buy your company? If you have here are some points to be considered.
You Have to Take Buyer Paper
Some buyers will make it seem like everyone takes Buyer paper as part of the purchase price. We often recommend against Buyer paper because it rarely comes with the appropriate protection. Also the inability of turning the paper back into cash.
Everyone That Makes an Offer Has the Money to Follow Through
Not all offers are the same.
If you take an unsolicited offer, and you aren’t using an advisor to check the credibility of the buyer, you might be getting a deal from someone who doesn’t actually have the money to buy the business.
Unfortunately, there are folks out there that call on business owners to get them to agree to a sale, and then once they have a price and some basic terms, turn around and try to find the capital to get it done. Alternatively, there are people who have friends and potential investors that have funds to invest in a deal that they like, but they don’t have an obligation to do so.
If you are an owner and you get an offer to buy your business, it is best to check it out with a trusted advisor, like CapEQ before you make any decision.
#business #entrepreneur #management
