Skip Navigation
(P) 800.279.7569

4 Important Questions To Answer Before Financing A Business Sale

Check out these four important questions you must answer before financing a business sale.

Check out these four important questions you must answer before financing a business sale.

Buying or selling a business is one of the most critical business decisions you’ll make, so it’s crucial to have questions answered ahead of time. You don’t want to wait too long to structure your deal, as this should be addressed very early in the sale process. Continue reading for four important questions that you should have answers to before financing a business sale.

What Is The Lowest Price I Will Accept?

When selling a business, you must have a price point in mind, specifically the lowest price that you are willing to accept. If you have a number in mind, you won’t have to take too much time to consider an offer. Instead, you can know right away if the price is acceptable or if you want to move on to a different buyer.

What Are The Tax Implications and Interest Rates?

You also want to think about the tax consequences of the sale early on in the process. Taxes should be worked out with your business broker ahead of time until you fully understand the tax implication of the decisions you make. You should also consider interest rates to know what an acceptable rate is for a seller-financed sale.

Are They Any Additional Costs?

Next, ask yourself if there are any additional costs involved, such as any unsecured creditors that haven’t been paid for. You should also determine if the seller plans on paying for part of the closing costs.  

Will The Buyer Assume Debt?

The last question to ask is if the buyer will need to assume any long-term or secured debt. This is an essential question because long term or secured debt is a big issue, and this should be clarified very far in advance.

Business brokers are professional and have the expertise needed to buy and sell any type of business, and they can be extremely beneficial when structuring a deal that benefits the buyer and seller. Be sure to contact a business broker before selling your business to ensure it is sold to a reputable buyer as efficiently as possible!

Sell With Atlantic Business Brokerage, Inc.

At Atlantic Business Brokerage, our mission is quite simple; we help sellers sell businesses, and buyers buy businesses! Over the past 30 years, ABBI has facilitated the sale of countless commercial properties, businesses, and franchised locations. With our unparalleled knowledge of the business purchase and sale industry and our network of contacts, we offer services to both buyers and sellers that no other brokerage firm can match.

Contact us to discuss your business buying and selling goals today at 410-561-9800, or Toll-Free at 800-279-7569. Email us at [email protected], and follow us online on Facebook and LinkedIn.


This entry was posted on Thursday, May 2nd, 2019 at . Both comments and pings are currently closed.