Part Three – Selling Your Trade Business
Series: How To Sell Your Trade Business
Guest: Brandon Jacob from Contractors Financial Opportunity
In the last episode of this series, Brandon shares the actual process involved in selling and buying a business. This process requires professionals who specialize in business valuations and transactions. If you want to sell or buy a business, you need to get in touch with attorneys, marketers, and consultants for due diligence and a proper and legitimate process.
If you are interested in selling and business deals, check out these other episodes:
- TSS158 – Structuring Your Financial Deals – [LINK]
- TSS205 – How to sell your value and maintain a solid sales process – [LINK]
About this podcast, ‘Selling Your Trade Business’
Podcast Highlights:
- 04:55 – The value of small businesses
- 07:30 – Pre letter of intent
- 10:40 – Importance of legal counsel
- 16:55 – Pros and cons of being approached by a buyer
- 19:34 – Seeking professional help
- 25:23 – Non-disclosure agreements
- 33:05 – Varying timeframes
- 38:04 – Negotiations
- 39:19 – Post letter of intent
- 46:24 – Different variables included in due diligence
- 49:52 – Difference between stock purchase and asset purchase
- 58:45 – Employment agreement
Brandon identified two phases of buying and selling a business. The first step is the pre-letter of intent, and the second stage is the post-letter of intent. The first phase signals how serious a buyer is to acquire a business. This pre-LOI phase has an expiration date. Thus, the buyer is required to decide within the given timeframe.
After the potential buyer and the seller signed the LOI, the prospective buyer can now analyze the internal operations of the desired company. Negotiations also happen during the post-LOI phase. It is also during this stage that non-disclosure agreements are crucial. These agreements protect everyone involved in the transaction.
Therefore, it is essential to seek the help of trained professionals, such as lawyers and consultants. It is also crucial to be highly prepared because this stage can be tedious. Everyone involved must strictly follow the process to avoid legal and business conflicts.
About Our Guest
Brandon Jacob is a Certified Public Accountant and the owner of Contractors Financial Opportunity, LLC. For over 20 years, his expertise has helped clients with business valuations and transactional support when it comes to selling their businesses. He also authored two books, For What It’s Worth and Operation Exit Strategy.
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