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11 Effective Tips for Selling a Business

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11 Effective Tips for Selling a Business

Over 10,000 businesses are sold in the U.S every year, often because the owner has outgrown the venture.

Selling a business is a great way to make a profit and move on to larger projects. Perhaps you’re planning to sell, but you’re not sure how to get the most out of the process.

Sounds familiar? Don’t worry, we’ve got you covered. Here are 11 tips to guide you.

1. Determine Your Business Value

If you’re unsure how to sell a business, start by figuring out its value. This is where a professional consider your price-to-earnings ratio and calculates how much your assets are worth.

During this time, it’s wise to hire a mergers and acquisitions lawyer to spot any potential problems before they arrive. And, as a general rule, you should sell your business when it’s at its peak to make the sale worthwhile.

2. Hire a Business Broker

You’ll find that most sales companies are overseen by a business broker. It’s their role to optimize your listing to boost your business’s visibility and increase your chances of finding the perfect buyer.

Brokers know when to sell a business and take care of admin tasks so you can continue running the business. Further, these professionals can tap into business transaction databases so they can correctly value your business. Plus, brokers have the know-how to seal the deal within a deadline so your plans aren’t compromised.

3. Plan Ahead

When selling a company, it’s important to plan as early as possible.

Every business owner has invested their lives in their business, so it’s crucial to get the best deal for your labor. If you’re unsure about the process, ask your broker and they will give you an outline of what to expect.

4. Be Realistic

Regardless of how successful your business currently is, it’s important to ask for a realistic asking price.

Aside from the current profit, consider client relationships and how long it takes for a successful transaction. Don’t worry if you’re unsure, simply work with your broker to arrive at an agreeable price.

5. Know How to Negotiate

All businesses for sale require negotiation skills so you land a fantastic deal. Once you’re set on a realistic price, allow room to negotiate but don’t sell yourself short. You should also consider your business’s financial projections so you don’t undersell your business.

6. Prepare the Right Documents

Every sale requires a huge stack of paperwork, so be prepared to save time. You’ll need the last three years of your business’s receipts, so the new owner can access statements, balance sheets, and tax returns.

The documents should also list the assets included, whether there are any mortgages, and costs of licenses and loans. Further, include employees’ contracts and a description of your business’s operating policies so the buyer knows what to expect.

Note, this is the perfect time to check whether any appliances need maintenance or if there are remodeling projects, so you can get the most out of the deal.

7. Answer Buyers’ Questions Honestly

Before you have meetings with buyers, it’s crucial you know everything about your business. From financial records to issues with your business, make sure you’re honest about any questions buyers have.

Come equipped with facts and statistics so buyers know you’re transparent and feel more confident dealing with you.

8. Never Accept the First Offer

Sure, the offer may appear great but it could also be the adrenaline rush of securing a sale. The key to landing the best deal is to find as many buyers as you can as you’ll be surprised at how much the price fluctuates.

Once you’ve received several offers, then discuss each one with your broker and listen to their suggestion.

9. Don’t Neglect Your Business During the Buying Process

One mistake many business owners make is getting so excited about selling their business, that they completely neglect it. This is problematic because if your revenue plummets then the buyer may return and ask for a lower price.

Instead, decide who is going to negotiate a sale and which team member will oversee the business. But make sure it’s an employee you trust so you don’t miss out on your dream deal.

10. Handle the Profits

Several months before the sale, list your financial goals and consider any tax implications that arise from the sale. In general, most recently sold businesses carry a large tax liability so factor this ahead of time so you’re not lumbered with a massive bill.

Also, if you haven’t already, keep your expenses separate from your business’s. Most business owners charge items through their business account so note these down so the buyer gets a clear vision of your business’s revenue.

11. Have a Post-Sale Plan

Regardless of whether you’re retiring or changing careers, have a plan so you know what you’re doing once the business is sold. It’s important to have personal goals so you’re not bored or unmotivated.

Also, give yourself time before spending any profits from the sale. This is so you don’t overspend and compromise your financial goals.

Our Selling a Business Tips

Hopefully, after reading this article, you’re confident about selling a business.

Start by figuring out your business’s value, hire a broker, and plan so there are no nasty surprises that could ruin the deal. You should also keep your business running smoothly and be transparent with buyers so they trust you throughout the process. Good luck!

Did you find this helpful? Then check out the rest of our blog for similar content.

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7 Things To Ask Your Lawyer Before Selling Your House During Divorce

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7 Things To Ask Your Lawyer Before Selling Your House During Divorce

Most divorces end up including the sale of jointly owned properties from the union, and, sometimes, these properties include the family’s home. This can be a challenging process, unless handled with the right tact and legal strategy.

This post will reveal the top questions you’ll need to ask your lawyer before selling your house during divorce.

  1. How Will You Divide Personal Property?

Personal property refers to anything you own that isn’t real estate. How are you and your spouse going to share that?  If you have a pre-nuptial agreement, then you might be guided by it during the sharing process. But, if not, you’ll need as much guidance as you can get if you can’t reach an immediate consensus between yourselves.

If certain things hold different levels of importance to any one of you, then the one to whom a ring isn’t as important might decide to let the other have it. But, sometimes, it’s not that easy. If you can’t reach an agreement, your lawyer might be able to help you by guiding you according to the laws that might aid you in your case or by negotiating on your behalf, which is a good thing, given a lawyer’s negotiations experience is more than that of the average person.

  1. Who Will Live In Our Home And For How Long?

You may also need to ask your lawyer to help you decide who gets to stay in the house and whether they can keep doing so while the house is on the market. If you and your spouse have any kids who are in school, then the spouse with primary custody to the kids could stay in the house for the benefit of the children. In this case, it might also be a good idea to put off the idea of selling your home until the end of your children’s school year, so their academics won‘t be drastically impacted.

There might be other factors that might help direct the answer to this question, so have your lawyer help you through your unique situation.

  1. While Waiting For A Buyer, Who Services The House’s Mortgage?

Someone has to pay for your house’s mortgage while it’s on the market if it’s to stay up to date with its mortgage servicing. If only one spouse was making money in the marriage, yet it’s the dependent spouse that has to stay in the house while it’s on the market, then they might not be able to pay for the mortgage.

Working this out with your lawyer in advance helps you stay ahead of potential problems.

  1. How Will I Select A Real Estate Agent?

If you and your spouse have already agreed on which realtor you’ll be using, then it’s a good idea to include it in your separation agreement, so it’s clear. If, however, you can’t agree, then your separation agreement will need to include the criteria you’ll use for choosing. Your attorney will help you draft this criterion.

While your realtor will be representing both your interests, if one spouse makes the decision on who the realtor will be, they’re most likely to be met with resistance than if, say, one spouse makes a list of three to five realtors and the other spouse chooses a house buying company in Dutchess County NY, or wherever you live, that’ll act as your realtor from this list.

  1. How Will I Agree On The Level Of Repair Job Needed?

Determining how much your home needs for repairs can be a major area of disagreement before a spouse finally agrees to sell a house. One spouse might think that the house needs more work done before it’s market-ready. For this reason, it’s important to include in your separation agreements which repairs you’re going to prioritize. If you still can’t agree on these, then it might be a good idea to go with your realtor’s recommendations for repairs.

  1. Who Will Cover The Costs Of the Repairs?

If you’ve decided which repairs you’ll have done on the house, then the next step is to ask your lawyer to help you determine who will cover the cost of the repairs. If it’s going to be the both of you, then what percentage is each of you going to bring?  If only one of you can cover the fees upfront, then you’ll need to work out a payment plan to reimburse them after you’ve shared the proceeds from the home sale.

  1. How Will You I Share Proceeds And Liabilities From The Sale Of My Home?

Under normal circumstances, spouses should be dividing proceeds from home equally, but, sometimes, there might be special circumstances that require a more customized share distribution.

If, for instance, one partner took care of the bulk of all expenses connected to the house since the separation, that is, the mortgage and the repairs, then that partner might need to be reimbursed first before sharing can commence. All of this will need to be reflected in writing before your house goes to sell.

Conclusion

It’s easy for seemingly minor details to slip past you as you plan to sell your house and split your assets during a divorce, causing unnecessary stress for you and your family. Using this article as a checklist for questions to make sure you ask your lawyer, you can make sure nothing will ambush you in the future that you didn’t prepare for, leaving everyone involved on the solid legal ground.

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How to Become a Notary in 3 Simple Steps

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Being a notary can come in handy in many different situations. If you’ve wondered how to become a notary, the ease of the process might be surprising. It is possible to become a notary for less than $200 in most cases!

Becoming a notary can be a quick experience when you know what to do. Keep on reading to learn the three simple steps you need to become a notary!

1. Learn How to Become a Notary

When learning how to become a notary, you need to educate yourself as much as possible. What is a notary? A notary is a person who gets approved by the state to witness official documents.

The process might differ depending on the state, but most have training courses. Education is not always a requirement by the state, but it helps you understand the responsibilities.

You will learn all the laws concerning notaries. There will be various situations you face after becoming a notary.

Knowing the state laws will help you know what to do in each one. View here for more information on what notaries can sign. There may be times you get asked to sign something you can’t sign.

Check your state’s website for the latest training on becoming a notary. Take any available courses to gain all the knowledge possible on being a notary. You must understand what you can and cannot notarize.

2. Apply to Become a Notary

After your training, you can apply to become a notary. Most states charge an application fee. These days, many states let you apply online.

You can pay using a credit or debit card. It can cost as little as $20 but as much as $120 in some states. Your state website will have the exact amount you will need to pay.

When applying to become a notary, you will answer basic questions. Once you have completed the application and sent it in, you will have a short waiting period. That timeframe can be up to several weeks.

3. Getting Approved

After you get approved, you may need a notary bond and insurance for your state. You may also need to file your notary status at your local county office.

Once you learn how to become a notary and get approved, you can get your stamp. All notaries get recognized from their stamps. States have various restrictions on these.

You will get an official notary certificate from your state office. Notaries can get stamps from approved manufacturers, so check the state website for those. It takes less than a month from starting the process to get your notary stamp.

What Comes Next?

After you know how to become a notary, you can move to decide how to use your new skill set. Many people charge a small fee for their notary services. Following the steps laid out by your state is a straightforward process.

With a bit of money and training upfront, you can use your new abilities to make some extra income. All you need is a few supplies and the ability to go where needed! Follow our website for more articles on how to develop new skills!

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How Do I Choose the Best Divorce Lawyer in My Local Area?

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Very few, if any, of the around 2 million couples who marry each year go into the marriage expecting a divorce. The travails of adult life often put those expectations to the test. Spouses stop communicating, grow apart, or even become abusive toward each other. In face of that, a little under 750,000 couples do end up getting divorced each year.

If you think your marriage will go in that direction, you also probably wonder how you can pick the best divorce lawyer in your area. Keep reading for a quick guide to picking the best divorce attorney for you.

Ask Around, Quietly

This part of divorce planning is something that you must handle quietly. Reach out to close friends or family members who went through a divorce and that you can trust to keep quiet. Ask them about their divorce attorneys and whether they were satisfied.

This can help you narrow down the list of dozens or even hundreds of potential lawyers to a small handful. You should back these recommendations up with independent research on the lawyers to narrow the list even more.

If you can’t find specific recommendations for a lawyer, look for the best law firm for divorces.

Consultations

You should meet with at least a few of the candidates on your list for a formal consultation. A good consultation will often take several hours and get into the specifics of your case. You should expect to pay for this type of consultation.

While many lawyers will offer a free consultation, these rarely last more than 15 to 20 minutes. They are also largely useless for getting a feel for a lawyer’s personality and approach.

Ask Questions

While you likely lack the experience to dig deeply into something like legal strategy, you can ask questions that will inform your decision. A few common questions that can help you understand what kind of lawyer you are dealing with include:

  • What percentage of divorces do you settle without a court hearing?
  • What approach do you take in settling divorce cases?
  • What role can or will I take in settling the case?

If an attorney sees taking things into the courtroom as the first, last, and only option, you probably want someone else.

Discuss Fees

You should expect an hourly rate for a divorce attorney. The average hovers around $270 an hour, but the lawyers you meet with may charge more or less. Make sure you understand when and how billing will happen, as many divorce lawyers expect a retainer before they start.

Getting the Best Divorce Lawyer

Getting the best divorce lawyer isn’t the same as getting the most expensive or most recognizable divorce attorney. The best divorce lawyer is the one who will best serve your needs. For example, if you prefer avoiding the publicity of a court proceeding, you want someone who does everything they can to settle.

You also want a lawyer that you feel comfortable with personally. Divorce is an emotionally taxing process without adding someone you personally detest to the mix.

Looking for more tips on divorce or family law? Check out the posts in our Law section

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