Business
FSBO
A large number of businesses change hands in For Sale By Owner
(FSBO) transactions. Some FSBO deals are to friends or family.
Some FSBO deals literally just walked in the sellers front
door. The reason for entering into a FSBO deal is not important.
What is important is that the seller and buyer are able to
successfully navigate all of the rules, regulations, and obstacles
that come with the sale of a business.
When the seller and the buyer come together
without the use of a broker, the biggest question they have
after shaking hands on the deal is, "Now what do we do?"
They may have agreed in principle to sell and to buy, but
they may not have thought about the "nitty-gritty"
that may get in the way of closing the deal. Did they agree
on:
- The value of inventory and if it was included in the
sale price.
- Who is to receive the accounts receivable after close.
- Who is responsible for the payables after close.
- Who is responsible for the building lease.
- Whether equipment will be purchased subject to existing
loans.
- The allocation of the purchase price based upon IRS regulations.
- Who was going to pay the attorney's closing fees.
This is only a partial list of some of the things that need
to be considered in an FSBO deal. It is possible that any one
of the above items could become a deal breaker.
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