| 1. Are your company's recent sales and earnings | | | | corporate stock? |
| trends desirable? The ultimate purchase price is | | | | 7. Is the ownership willing to have their broker |
| significantly increased if the sales and the earnings | | | | discuss the company with the company's |
| have been growing over the past several years. | | | | competitors? Often this is an easier sale and for |
| 2. If your business lost its two largest customers | | | | more money but also there are additional risks |
| what percentage of its overall revenue would be | | | | (e.g. industry talk, customer information, product |
| lost? If there is a concentration of business with a | | | | or service pricing) not found when selling within |
| single or a few customers and they have other | | | | the unrelated private equity market. If a quiet sale |
| options it would be advantageous to dilute this | | | | is the goal then discussions with a competitor are |
| before selling your business. | | | | usually not recommended. |
| 3. If you, the owner, are involved in the business | | | | 8. Make sure the broker that you select is paid |
| is there an interest in continuing in that capacity or | | | | only when the sale is complete and with a fee |
| even a reduced capacity after the normal 1-2 | | | | structure calculated to incentivize an increased |
| year post closing transition? Are there qualified | | | | sale price. Only success is rewarded. Determine |
| management candidates within your company to | | | | who within the brokerage company will actually be |
| take over once you, the owner, retire post-sale? | | | | working on the marketing and the negotiations of |
| If not, such a suggestion outside the company | | | | your company. Associates are not senior |
| may be of importance. | | | | partners. |
| 4. If there is significant value in the company's real | | | | 9. Understand that for the time to complete a |
| estate it may be advantageous to distribute it to | | | | sale a reasonable target would be about 6 |
| the stockholders before selling the company and | | | | months. Is this a good time within your business' |
| have the company lease it back at market rates. | | | | seasonality or its industry cycle? |
| 5. Understand that the purchase price takes into | | | | 10. Is there someone within your company who |
| consideration that there will be no interest bearing | | | | can confidentially assemble the required financial |
| debt to be assumed by the buyer. | | | | data without disrupting the company's business |
| 6. What is the corporate structure and which | | | | and without exposing the process within the |
| would be preferred, selling the assets or selling the | | | | company? |