Issue link: http://psai.uberflip.com/i/1084319
74 2019 INDUSTRY RESOURCE DIRECTORY environmental compliance? • What is the seller's reputation in the industry? • Are the seller's financials credible, accurate and reliable, and can they be verified? • Are any payables or receivables significantly overdue, and have any scheduled receivables been paid in advance? • Do any "off-balance-sheet" liabilities, such as extended lease commitments, accrued payroll, vacation or sick leave, exist and, if so, how much/many? • Is the seller's market expanding or contracting? Are the seller's customers knowledgeable and reliable or are they troublesome and/or slow-payers? Does the seller rely on any one customer or small group of customers for a significant portion of its revenues? • Are new or large competitors entering the local market? • Are the seller and the seller's business currently in compliance with all applicable laws, rules, regulations, codes and ordinances? • Are any proposed new laws going to affect the business, such as zoning changes, environmental laws, building and fire codes, use, height, noise, weight, capacity, lighting, security and/or other restrictions that will affect how the business operates in the future? In the end, only you can decide if the purchase makes sense in light of the information you uncover during your due diligence, the money you have to invest, and your overall business strategy. The goal is to make sure that whatever your conclusion, there are no "bad surprises" that could have been avoided with a better research and decision process. Selling Your Business There are a lot of reasons to sell your business. Regardless of your motivation, to get the most out of the sale and to be truly "out" of the business on closing day, you need to: • Know the value of what you are leaving • Determine the structure of your exit (selling the business outright, selling assets, transfer of stock, bankruptcy, etc.) • Know how to extricate yourself from relevant aspects of the company's operations and records The PSAI has not developed any specific tools to assist you in selling because there are many good ones already publicly available. • The Small Business Administration has an entire section of its website devoted to "getting out." You can find it at www. sba.gov/category/navigation-structure/starting-managing-business/managing-business/getting-out.The SBA also has a self-paced training course on the topic of closing/selling a business. You can find that here: www.sba.gov/tools/sba- learning-center/training/selling-your-business. • SCORE provides some excellent tools on valuing your business and selling it. You can find them at www.score.org/buying- or-selling-small-business. This site also provides suggestions for boosting the value of your business, best practices for selling, and important elements of the buy-sell agreement. In addition to these tools, it is critical to consult a financial professional, preferably a tax attorney, regarding the structure and tax implications of various deal structures you may consider. This one step could have a significant impact on your final financial outcome after your exit is complete. Planning for a sale. Before you get close to selling, it is important to do some thinking, research and planning so that you can enter any potential sales discussion with your eyes wide open. Although each company and seller is different, some common planning issues should be considered by virtually all potential sellers. You don't have to make final decisions about these things up front, but it's good to have a general idea of what you'd like to accomplish in terms of: • Sale price—how much and when the sale proceeds will be paid to you. • Continuation of the business—will it continue in its current form, be dissolved or be absorbed into the buyer's existing firm? • Your work future. Do you want to continue to work in the business or the industry after the sale closes? You will almost certainly be required to sign a non-compete agreement as part of the transaction. • Providing for your employees—such as continued employment, wages, salaries, insurance, bonuses, benefits, or promised promotions • Liability issues—usually involving efforts to avoid or limit existing and potential liabilities and eliminate personal guarantees of company debts and contract obligations. Buying or Selling a Portable Sanitation Business Better worksites. Better weekends. Better world. EXCLUSIVE MEMBERS-ONLY CONTENT REDACTED Join us now at www.psai.org for access to this valuable information.