Thursday, October 18, 2012

Selling Your Business ? Too many choices | Opus Consulting Group

Selling Your Business ? Too many choices

Selling your business is a complicated task and?Opus Consulting Group?is here to help. Below is a brief overview of different sales options and strategies.

Outright Sale:
An outright sale involves selling to an outsider and can be accomplished in two general ways. You sell your stock or you sell your assets for cash. Generally a stock sale will benefit the seller as the purchaser is buying the company and with it future obligations.

Management Buyout:
A management buyout is a popular option as it bypasses having to find a buyer. However, it is more difficult to get funding for management buyouts and the sales price is usually smaller than the going market price. Another drawback is new owners (past management), might not run the business as efficiently calling the previous owner back into action.

Employee Stock Option:
Employee Stock options or ESOP?s are receiving big tax incentives and are becoming more popular. It?s a great way to reward hard working employees by allowing them to buy into the company. Then when they retire they can sell their stock back and cash out. This option is best for individuals with a strong tie to their employees.? A shortcoming of this option is a required third party assessment which usually means a lower sales price than the current owner would set.

Recapitalization:
A Recapitalization allows ?business owners to slowly move out of the business by restructuring and selling pieces of the company. This works well for both the buyer and the seller.? The seller can have an influx of cash from the transaction and the investors can gradually learn the business.

In each of these situations, the business will need to improve its value and its management. Opus can help prior to making a decision on which strategy to adopt and how to implement it. Opus will be along your side to achieve your goals and orchestrate the team that will implement the strategy, improve performance and maximize your desired outcome.

Contact?OPUS Consulting Group?so we can discuss your options. We are highly qualified to understand your business and create and?EXIT Strategy?that will achieve your personal and financial goals.

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Source: http://opuscg.com/selling-your-business-too-many-choices/

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