“We believe in making businesses feel like they are our only client.”

Thursday, June 02, 2011

Our law practice frequently involves buying and selling businesses.  Over the years, I have spent many hours reviewing contracts, financial statements and various other documents on behalf of buyers evaluating the purchase of a business.

Everyone knows you fix up a car or house before you put it on the market.  I have done this many times myself.  When I am done fixing up the car or the house I frequently I wish I had maintained the property in such good condition before I decided to sell.   It almost makes me not want to sell.

The same is true for businesses.  When my clients come to me with the desire to sell their business, we first examine what we need to clean up.  Are there contracts that need to be renewed or tightened up?   Are there key employees who should have noncompetition agreements?  Are all licenses and fees paid up?

That part of the cleanup is relatively simple.   The more difficult issues involve cleaning up financial statements, policies and procedures, and old bad habits.   For example, small business owners have a tendency to be very generous with their own expense accounts.  Typically the incentive in a small business is to show as little profit as possible while maintaining the highest standard of living for the owners.   However, potential buyers want to see a healthy bottom line to justify a price.

So the moral of the story is to run your business every day as if you are ready to sell it.  Do the hard work of planning and running your business properly now.   I promise you it will pay off in the end.


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    J. Edward Enoch P.C.
    3540 Wheeler Rd, Ste. 312
    Augusta, GA 30909
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