Thinking of Selling

Be Ready for a Business Sale Buy – Out Terms

The reality in today’s SME businesses is that there is more uncertainty about the future profit outlooks than they have been in previous years. The reasons are varied and beyond the scope of this blog. But, uncertainty reduces interest, price and salability in SME businesses. The majority of SME businesses rely on the ownership/proprietorship to some degree for the profit levels achieved to date. ‘Buyout’ terms, in my view, are more about reducing the risk to maintaining profit levels than anything else.

The absence of the role and activities performed by the ownership/proprietorship is seen as a risk to the business operation in the hands of a business buyer.

The risk mitigation approach of business buyers is to have some arrangement in place with the outgoing ownership/proprietorship to ensure its future performance reflects the levels it presently enjoys.

‘By out’ terms can see the business ownership/proprietorship ‘tied to’ the business usually for any period up to 3 years. Business owners need to be aware that their commitment to their businesses can be longer than anticipated and plan the timing of their sale or exit from their business accordingly.

If you need more information or help, please talk to me

Graham Long

0428-649-791

Kevin Lovewell

M: 0401-308-385
E: Click here to contact Kevin Lovewell
Member & Registered Business Valuer
Australian Institute of Business Brokers

Graham Long

M: 0428-649-791
E: Click here to contact Graham Long
Member & Registered Business Valuer
Australian Institute of Business Brokers

Kevin Lovewell

M: 0401-308-385
E: Click here to contact Kevin Lovewell
Member & Registered Business Valuer
Australian Institute of Business Brokers
What others say about Kevin Lovewell

Graham Long

M: 0428-649-791
E: Click here to contact Graham Long
Member & Registered Business Valuer
Australian Institute of Business Brokers
What others say about Graham Long

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