Question: How can I maximise the amount of cash I receive when I sell my business?

1. Re-plan the sale of your business. This should not be a spur of the moment decision.

2. Recognise the importance of finding the right buyer.

3. Consider getting professional help.



Question: How do I legitimately minimise my tax obligations when I sell my business?

Question: When is the best time to sell your business?

Environmental/External Issues- Beyond our Control

Internal Issues-Within our Control

Question: When a business is sold, what liabilities are the buyer responsible for and which remain the obligation of the seller?

Though it is not possible to control the external environment, such as interest rates and strength of the economy, it is possible to plan for an orderly transition. Most businesses don't have a value that is set in stone. Instead they have a range of value. This means that different buyers will have different perceptions of the same business's value.Unless you have a background in taxes, legal issues and merger and acquisition work, you will probably unknowingly make a multitude of costly mistakes by trying to sell your business yourself. Those mistakes may cost you substantially more than any fees paid for competent professional assistance. Do some homework on various alternatives.Plan well in advance by reviewing your corporate structure on an ongoing basis.As one would expect, the tax rules make it difficult for any quick fixes that give rise to immediate benefits.So sit down with your professional advisor and review your current business structure and its appropriateness for your business's eventual sale.corporation's assets can result in proceeds being taxed at the corporate level as well as the individual level when the remaining proceeds are distributed to the stockholders. However, if the stockholders sell their stock, it is likely that capital gains provisions would apply.Yet after tax dollars in the sale of a corporation can vary between 45 percent and 85 percent of the sales price based solely on tax structuring issues. The earlier you start planning for the sale of your business, the more likely you will be to minimise tax obligations.The best time to sell your business is determined through a careful consideration of the factors that can and cannot be controlled to maximise the amount of cash you receive. These factors include:Clearly, we have enjoyed this scenario in the United States over the last few years. As a consequence, there has been a flurry of activity in corporate America as well as small business America. Well-run, sound businesses are selling relatively easily for nice multiples.However, all too often a business is allowed to stagnate or even decline because the owners have taken their foot off the accelerator. Getting "burned out" and other health issues are probably the most often cited reason for a small business owner wanting to sell. This is understandable, but also often controllable.A decision to sell can be very difficult for a host of good reasons. Most small businesses don't have boards of directors holding management accountable. However, sometimes it is prudent to seek outside objective advice from respected confidantes or professionals.While all transactions are unique, buyers will typically assume liability for the following: leaseholds related to real estate, unless they are relocating the business; accounts payable (and if they do they will also get the accounts receivable); advertising commitments such as Yellow Page contracts;Sellers will typically be obligated to pay off out of the sale proceeds the following: lines of credit;There is another issue related to liabilities. The seller is obligated to give the buyer strong "warranties and representations" (guarantees) that there are no undisclosed or unknown liabilities that might create claims against the assets being sold.