| Selling a business can be a life changing event. | | | | Sit down with a competent financial planner if you |
| Depending on the deal, you may suddenly have a lot | | | | have not done so already. Your business was hard to |
| more money and free time. So what do you do now? | | | | build, so don't throw the money you've just earned |
| A beach on a tropical island may be nice for a while, | | | | away by taking unnecessary risks and paying high |
| but before you go there are tasks that you should do | | | | fees. |
| which are rarely discussed in the industry literature. I've | | | | Remove your name from any personal guarantees. |
| made a checklist of things to do after the sale. A little | | | | Often when signing a contract for the business, an |
| time invested right after the sale may allow you to | | | | owner gives a personal guarantee. I've seen an owner |
| avoid a great deal of trouble later. | | | | get hit up for collection on a contract for high speed |
| Make sure that you thank your employees. They have | | | | internet lines over three years after a sale based on a |
| enabled your success and who knows, one day you | | | | personal guarantee given as part of a contract that |
| may need their goodwill for something (a job | | | | was signed a year before the closing. |
| reference, collecting a receivable). | | | | Collect receivables that you have retained as soon as |
| If there is an adjustment made to the sale price based | | | | it is practical to do so. Receivables get harder to |
| on inventory levels, make sure that the inventory is | | | | collect as they age. |
| counted right before or immediately after closing. | | | | If you structured the deal as an asset sale, make sure |
| Don't forget the petty cash box. Empty it right after | | | | that the company name transferred to the new owner |
| the sale if there was an asset sale and you did not | | | | and that you're company (with little or no assets) has a |
| include cash in the sale price. | | | | new name. |
| Help the new owner smoothly handle the transition | | | | Pay any accounts payable for which you are |
| with your clients. Remember that the clients belong to | | | | responsible. |
| the new owner now, you need to let the new owner | | | | Distribute any cash or bank balances that were not |
| decide how to handle it. You need to do your best to | | | | included in the sale. |
| make it successful, but how it's handled is the new | | | | File a final tax return for the company. |
| owner's decision. | | | | Finally, dissolve the corporation. |