Quote:
Originally posted by Don Plumley
Frankly, for a one person show, you would be better off finding someone to train and run the business, and have them buy it from you on an earn-out basis over a few years. For example, you could establish that after training and by providing some remote support, you would take a declining percentage of gross revenues or gross margin (not profit, too many variables) over 3 to 7 years.
Most business brokers are just real estate agents in disguise - they don't actively market the business but sign you up on an exclusive contract hoping to collect their cut. While there are exceptions, you'd be better off either a) marketing it yourself and finding an attorney to advise the transaction or b) finding a strategic buyer (competitor) with an adviser.
|
my experience is as a CPA working with smaller clients (bsns valued in the area of $50k to $3m or so) but i find the above advice to be absolutely spot on.
while there are exceptions (ie stupid buyers) to this i believe your best value is to find somebody who will get excited about your business and wants to come on as a manager (w/ maybe combo of % of profit) over a period of time while you stay on via phone/fax/email as an adviser. the promise from the start is that your new guy will eventually have an opportunity to buy you out for $$xx (maybe 1x's yrly profit? nothing too greedy) at no later than xxx date. YOU retain the right to fire the guy if he doesn't run the bsns right. Kinda like a rent-to-own.
you are looking for the guy that is fired up to do whatever work you do but doesn't have QUITE the level of entrepreneurial spirit it takes to start it all from scratch.