Financial Poise

Getting Started with Business Transition and Exit Planning

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You are a business owner. You have worked hard, possibly for decades, building your business. You are smart. But you have never sold a business before. You have questions. Lots of questions. Where do you start? To whom do you turn? Your lawyer? Your accountant? A business broker? An investment banker? Who will you sell your business to? What is your business worth?

Business Transition & Exit, or B-TEP, was built for you. This website offers plain English education about what you need to know to sell a business. B-TEP is not designed to obviate your need for a lawyer, accountant, and/or other professional advisor(s). However, it can help make you smarter about the subject – so you can find the right advisors, ask them the right questions, and better understand their answers.

You may choose to browse the BTEP website, “skipping around” to the topics that interest you. Alternatively, you may prefer to read a core group of articles in an order that BTEP believes will give you a solid framework from which to understand the process of selling a business. Click here to see our suggested reading order.

Core Articles

  1. When do I know it’s the right time to sell my business?
  2. Planning and Staging Your Company (and Yourself) for an Ownership Transition
  3. How to Find the Right Buyer for Your Company
  4. Turning Business Income into Retirement Income
  5. Family Transitions: The Good, The Bad & The Ugly
  6. What is ESOP?
  7. Why a Business Needs a Calculation of Business Value
  8. Assembling the Right Team for Your Transaction
  9. Leading the Process: Investment Banker vs. Business Broker
  10. Eliminating a Company’s Dependency on the Owner
  11. Are Your Internal Financial Operations Ready for a Sale?
  12. How is a Company’s Value Determined?
  13. What are the Common Methods of Business Valuation?
  14. Understanding EBITDA
  15. EBITDA vs. Cash Flow
  16. Applying Multiples in Determining a Company Valuation
  17. Choosing a Business Appraisal Professional
  18. Understanding the Value of Your Company’s Intangible Assets
  19. Valuing Your Company’s Online Assets
  20. What is the Best Process for Keeping this as Confidential as Possible?
  21. The Importance of a Company’s Management Team in the Sale Process
  22. The Letter of Intent – In Summary
  23. The Letter of Intent – In Detail
  24. How a Buyer Finances a Business Purchase
  25. Basic Legal Structures for Selling Businesses
  26. Should You Sell Shares or Assets?
  27. Differences Between a “Financial” & a “Strategic” Buyer
  28. When Should a Seller Sign a Letter of Intent
  29. Understanding the Purchase Agreement
  30. Purchase Agreement Essentials – Business Deal Terms
  31. Purchase Agreement Essentials – Closing Requirements and Mechanics
  32. Purchase Agreement Essentials – Disclosure Provisions
  33. Purchase Agreement Essentials – Risk Allocation Provisions
  34. Purchase Agreement Essentials – General “Boilerplate” Provisions
  35. Exemptions to General Rule that Seller’s Liabilities are not Acquired Unless Assumed in Asset Sales
  36. Will Private Equity Groups be Potential Buyers for my Company?
  37. What Would You Choose an ESOP Among the Variety of Other Transaction Strategies that Exist?
  38. What are the Tax Advantages to an ESOP?

How is B-TEP Different?

  • Unlike the vast majority of resources you will find on-line, B-TEP is not owned by an advisor trying to sell his or her services.
  • Unlike other resources you will find on-line, B-TEP is not “crowd-sourced.” In other words, B-TEP is not just a collection of articles contributed by anyone.
  • Unlike other resources, B-TEP is not “pay-to-play.” That is, B-TEP never asks an author to pay and will never accept an author’s payment before B-TEP will publish her or his article.
  • B-TEP is an on-line journal.
  • B-TEP is the result of contributions from many professionals from many firms. Any professional can submit an article, but not every article will be published. Before an article is published, the author is vetted and the article is reviewed and edited by B-TEP’s internal editorial team.
  • B-TEP is supported by advertising, but there is a wall between our editorial team and our advertising sales department. Moreover, the vast majority of B-TEP’s advertisers will never write for B-TEP and the vast majority of its writers will never advertise.

B-TEP is part of the Financial Poise family universe of on-line resources, devoted to educating business owners/executives, investors, and their respective trusted advisors. For more information, click here.

B-TEP’s home page is laid out in a rough chronological order. That is, as you go clockwise around the screen to the various circles you will come upon topics in the order in which you very may well want to address them as you think about and then work though the process of selling your business. We hope you enjoy our website.

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Financial Poise helps trusted advisors (accountants, attorneys, business brokers, consultants, financial advisors, investment bankers, etc.) by providing a meritocracy-based platform on which to demonstrate their thought leadership.

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