192 - Buying and Selling a Business
On today's episode of the podcast I chat with Taylor Darcy, owner of Think Legal PC, about the legalities of buying and and selling a business.
Taylor works with small businesses to help them get started the right way to help them prevent disputes, or help get them out of disputes for the least amount of money as possible (or get them the most amount of money depending on what side he's working on). Taylor works on litigation, helping businesses file complaints or defend if there is a complaint against them, all with the goal of avoiding litigation if at all possible.
When selling a business, the value comes from systems. If you are the value in the business and you leave the business, then there's no value and the buyer isn't going to want it. The value of the systems is what will bring in a higher price.
Buying a business is a great way to get into entrepreneurship because you can use the assets of the business to finance the business. On the flipside, if you are selling a business, it is important to get an independent evaluation if you're even thinking of selling in the back of your head that you might want to sell someday. It helps set a baseline and get you to where you want to be. The most common price is about 3x your gross annual revenue.
When selling a business, ideally the intellectual property is protected. It's important to work as far in advance as possible. Put your systems in place, protect your intellectual property, engage a CPA for your books, an attorney for your corporate formalities, they better off you are going to be down the line.
Get in Touch with Our Guest
Taylor Darcy, owner of Think Legal PC
Visit the Think Legal PC website
Check out the Think Legal PC YouTube channel
Join Taylor's Facebook Group, Tactical Startup