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Suggestions on Selling Your Service Firm

The difference between success and failure in selling a professional service business can come down to timely legal advice and practical business considerations. Stuart R. Kaplan, an attorney with the Pittsburgh law firm of Eckert Seamans Cherin & Mellott, LLC, offers key points for small-business owners to consider when they're planning to sell a firm:



- Clarify the deal
Avoid the common mistake of leaving key terms ambiguous or, worse, omitting them. State clearly what is being conveyed, what will be payable, and when. Among other details, sale documents should state which party will be entitled to post-closing income for pre-closing services. It should be stated clearly who will be responsible for the company's accounts Payable, employee benefits, deferred obligations, and contingent liabilities. Any terms used in a purchase-price formula, such as "gross billings" and "net income," should be defined as precisely as Possible.

- Avoid delays.
As a rule, it takes four to eight weeks to complete the sale of a service business once a purchaser has come forward with a letter of intent to purchase. Buyer and seller can drag out a transaction unnecessarily for weeks or even months. A seller can expedite the process by addressing the purchaser's requests for information about the business promptly and specifically. By the same token, the purchaser should not be allowed to peruse company books and records endlessly. Set a reasonable time limit based on the complexity of the deal.



- Check the status of your service agreements
Along with intangible assets such as goodwill, reputation, and trade names, a valuable asset of a service firm is its contracts to provide professional survices. However, often these contracts cannot be assigned to third parties, or assignment may require consents and approvals that can be difficult to obtain. Before you sign any binding agreements. te certain that you have the right to sell or assign your contracts to the purchaser.

- Be discreet
To the extent possible, avoid telling customers or clients aboul the sale until closing. If the purchaser tries to change significant terms or conditions at the last minute, you may feel pressured to accept an unfavorable deal because it Would he awkward to hack out without losing face.

ANNUITIES MEANING ULTIMATE ASSURANCE PROPERTY SETTLEMENT
WEALTHY AND SUCCESSFUL PEOPLE MILLENNIALS CHOOSE TO BUY HOME HOMEOWNER KNOW INSURANCE
ASK MORTGAGE LENDERS CAR ACCIDENT SETTLEMENT WORTH MORTGAGE APPLICATION
PREPARE INVESTING STOCK SHOPPING WITHOUT DEBT FACTORS AFFECTING HOME LOAN
CREDIT CARDS WITH NO DEBT PLAN FOR BUSINESS LOANS STEP BUYING INSURANCE
CHOOSING LIFE INSURANCE CHEAP CAR INSURANCE DEBT WITH CREDIT CARD
TYPE OF INSURANCE HOW TO REQUEST A CLAIM DEPOSIT BANKS OR TINSURANCE
NEED LIFE INSURANCE INSURE ASSETS AND LIABILITIES CONTRACT BUYING A HOUSE
HAPPY IF IN DEBT PAY CAR INSTALLMENTS MOST CAR INSURANCE TERMS
URGENT MONEY REQUEST LOAN SAVE MONEY IN STOCKS HOW TO HAVE A HOME
PLAN BEFORE RETIREMENT PLAN REPAYMENT CAREFULLY PLUNGING TO THE DEPTHS
CUT HEALTH CARE COSTS HANDLING EMPLOYEE DEPARTURE PUT ON RETAILERS' SHELVES
LOW COST PROMOTION GUIDE TO OFFICE COLLEAGUES GET TQM TRAINING
UNCONSCIOUS CREDIT CARDS HOME TO PAY OFF DEBT WANT MONEY TO INVEST
CREDIT CARD ADDICTION MANAGE CREDIT CARD DEBT INSURANCE AGREEMENT
LOANS FOR EDUCATION LEAD TO POVERTY WHAT IS PRIVATE FUND
OVERLOOK INSURANCE ALSO SAVING ON DEBT DO BEFORE RETIRING

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