By Leland Eidson, System Administrator/Closing Coordinator-Confidential Business Intermediaries/The CBI TEAM Northwest Arkansas

The closing table is like the finish line of a long complicated race. It takes a lifetime to build a solid business, and selling a business can seem like a marathon. While it’s true some deals are more like sprints, barreling towards the closing table at breakneck speeds, most deals go cross country. There are plenty of twists and turns, and often there are even a few hurdles to clear. This can be exhausting, and it takes time, but the CBI TEAM will be there every step of the way.

In more than 20 years in business, the CBI TEAM has learned that every race is different, and no two businesses take exactly the same path to the closing table. However, the one thing that’s true of every deal is that time is the enemy. There is nothing quite like time to make a person talk themselves out of a deal that’s going to work. Time spent scrambling to cover the details can be the difference between a successful transition of ownership and a complete shutdown. Sometimes it’s a kernel of doubt that with time grows to crippling heights, sometimes it’s just a matter of being too tired to go on. A lifetime of work ends without providing the return you as the business owner so richly deserve.

So how do you fight time? How can a business owner clear their path to the finish, and shave a few minutes off their lap times? The CBI TEAM has the answer.

It begins with a good start!

We’ve helped to sell hundreds of businesses, and we know exactly the types of hurdles a business owner is going to face when trying to sell. We know the questions buyers have, and we can help you be prepared to answer them. The CBI TEAM provides our clients with all the tools necessary to win the race and visit the closing table.

If you want to win a race, the easiest way is to get a head start and early lead. All CBI TEAM clients are asked to put together a financial document package, before we even talk about signing an agreement. In a free, no obligation consultation, your CBI TEAM Intermediary will take a look at the information you’ve provided, and give you an honest evaluation of how ready your business is to sell. We’ll get you prepared and organized, and together we can make the race a little shorter and a lot easier.

Ultimately, to paraphrase a sporting legend you lose 100% of the races you never start. The first step in the long race is get in touch with your local CBI TEAM office, and get your free consultation. No matter what happens next you’ll have the head start you need to make sure that this race is one that you can win. Call 877-582-5200 or email confidential@cbiteam.com today to take the first step towards the finish line.

This is a common question among business owners, and the answer may be this year.

Several months ago our managing partner, Mark Kincannon, wrote an article about an experience he had with a business owner who was selling his business. Mark helped the seller find a buyer and all parties agreed to the terms of the sale. The deal was almost done until the appearance of a last minute demand by the seller that the buyer could not satisfy. The deal fell through; shortly thereafter that same business owner had a health crisis and had to shut down his business without selling. The seller had missed his opportunity.

Here’s another similar story from a different article: John owned a successful business. A buyer offered millions to purchase his company, but John turned this offer down because he wasn’t quite ready to sell. When John was finally ready to sell, he could no longer find a buyer. Two years later his company declared bankruptcy. John had missed his opportunity.

These two stories are not uncommon occurrences, both for the Main Street small business owner as well as the larger M & A market. Entrepreneurship, while rewarding, offers no guarantees. Business owners must consider both their company’s future and their personal future when it comes to making plans to sell:

“Businesses that are in a position to do so may want to consider accelerating the timing for the sale of the business. At a minimum, each business ought to proactively prepare for its eventual sale–starting today.”

“Those who fail to plan accordingly may be forced to sell for a value lower than expected, take on unnecessary taxes, or even suffer an inability to sell the business.”

According to the same article where we found John’s story and the above quote, 2018 looks to be a continuation of a seller’s market. Let us know how we can help you prepare your business for sale this year. It is always a good time have a plan in place.

A bank ad caught my attention. They actually spent money to tell the public they were paying 2% on a certificate of deposit. 2%. Meh! I don’t think that keeps up with inflation, does it? How about getting 6 or 7% interest on a secured note? Does that sound better? Thought so.

Your business is a cash machine, producing income for you and your family as long as you are running the business. However, when you’re ready to sell, how do you keep the cash coming in? By selling to a third party who pays cash up front plus a seller note, generally at an interest rate that exceeds what you could get if you put cash in a CD at the local bank.

Generally, the note is secured by a lien on the business assets, and generally the note has a provision that gives you, the seller/lender, rights to inspect books on a regular basis to protect your payments from the business. Over the years, the CBI TEAM has become expert at structuring business owner financing to protect the seller and provide a stream of income for the seller to retire. Most often, the seller note is tied to the value of the goodwill of the business, something third party lenders like banks, are loath to do.

You, as the business owner and operator, know the goodwill of the business is measured in historic cash flow, and have reason to believe that the cash flow will continue as you identify and negotiate the sale of the business to a good buyer.

So, don’t fear owner financing. Embrace it as a way to provide yourself and your family with a stream of income after you exit the business.