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Sellers Should NOT Ask for All Cash When Selling Your Business
It is important that a seller should NOT ask for all cash. These are several reasons why you should not ask for all cash when selling.
By: Daren DiSantis
1. It drastically reduces the number of prospective buyers in the marketplace and will therefore extend the time it will take to sell the business.
2. It gives the buyer the impression that the seller must not confident in the business.
3. It there a lending institution (SBA or other Bank) also providing funds to the buyer, they will not finance goodwill, therefore, if goodwill does exist in your business (and it almost always does), you and/or the buyer will have to finance the goodwill portion of the purchase price.
According to a recent article by Business Exchange Network it states, "In almost each and every business sale, a higher price can be obtained if terms are offered to the buyer. A buyer will want to discount the ultimate negotiated selling price for a cash sale. Since most small business sales don’t include the seller’s bank accounts or its accounts receivable, a buyer will want to preserve its down payment since additional cash will be needed as working capital to operate the business."
To learn more tips about selling your business visit Business Exchange Network at http://www.bizxnet.com/
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The BUSINESS EXCHANGE NETWORK Inc., is a mid-sized business brokerage firm representing companies and individuals primarily in the Mid-Atlantic and Eastern U.S.