Congratulations! You have sold your business. You didn't get
all cash like you were hoping, but you did get a nice note secured
by the assets of your business and a personal guarantee from
the buyer and spouse. Now, what are you going to do?
- Do you have enough liquid cash for the down payment on a
new business, to make investments or pay off personal debts?
Can you borrow and use your note as collateral? Have you considered
converting the note from the buyer to liquid cash?
- If you are just starting to think about selling your business,
and perhaps want to sell it the quickest and easiest way possible,
offer to finance the purchase, and plan on selling the note after
the closing. If that is your game plan, you need to plan prior
to selling, or you may not have a note worthy of selling...
- At the minimum, be sure to observe the following. Missing
one will cost you later...
- For an investor to consider purchasing your note, at the
minimum they will need copies of:
- In addition, credit checks will most likely be done on buyer
and seller for
- If you sold a bad business, consider yourself lucky! Don't
plan on being able to sell the bad note that went along with
it. That is part of the price you paid to sell the business.
If you have a good note, there are buyers for it. They will look
more closely at the business, and parties to the business than
the buyer may have. If you would like someone to contact you
regarding selling your note, drop us an email.