How To Prepare My Business To Sell

Listen to Robert Hirsch from Freedom Factory talk about the steps you should take in preparation for selling your business. If you're interested in finding out how to get the maximum value for your business, contact Tyler Tysdal at Freedom Factory today.

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5500 Greenwood Plaza Blvd., Ste 230
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Phone: 844-MAX-VALUE (844-629-8258)
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How to Prepare My Business To Sell

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Read the Podcast Transcript below

Hi, Robert Hirsch from Freedom Factory here. And I want to talk to you about one of the most common questions that we get here, which is, how do I get my business ready to sell? Or I've decided I want to sell my business. Now what? Well, the first thing you need to do is to get your house in order to prepare your business to sell. So go and get two or three years of tax of tax records.

And financials and put those together. Get them from your accountant and get them ready to go. Second, if you haven't put together an operations manual, this would be a great time to do so. You know how your business works, you know how the different departments interrelate, but when you sell your business, we want to make it as easy as possible to transition to a new owner.

And that value is going to be reflected in the sales price. So go put your operations manual and new job descriptions together and get your house in order. And the third piece is find, you know, put your team together. Find a great broker and an appraiser. Get an idea of what your business is worth. Start to craft the story and figure out, okay, how are we going to take it to market?

When are we going to take it to market? You know, what's the current tax environment. You know, how can I recast my financials? And what I mean by that is really simple. They're going to, we're going to take your EBIDTA or your accountant can do the same thing, and we're going to translate it into seller's discretionary cash flow, which is.

A fancy way of saying all the money that your, that your business creates when you do your tax returns. It's a game of minimization, right? Tax evasion is illegal. Tax avoidance is very smart. So you're trying to pay as little tax as you can. Well, we need to translate that, you know, from some of your non-cash expenses, depreciation, you know, some of your discretionary stuff and add that back in to maximize the value accurately.

Flag all the value that your business creates, and that's gonna make a big difference. And finally, you know, what industry are you going to be in? How do we maximize your multiple? And there are ways to be able to do that. But think about what industry you're in. Figure out, you know, all your financials.

Put an operations manual together to make the transition as easy as possible. And all of this is going to be, is going to help you when you put the right team. Find the right appraisers, find the right brokers to help you prepare your business to sell, and if you need any help with this, give us a call here at Freedom Factory.

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What Contract Structure Should I Use to Sell My Business

Robert Hirsch, managing partner at Freedom Factory, founder of Freedom Factory, discusses the different types of contracts that you can use to sell your business.

What Contract Structure do I Need to Sell My Business

Stock Purchase Agreement or Asset Agreement? What's the Difference?

Read the Transcript Below

Hello, this is Robert Hirsch from Freedom Factory, and I want to talk to you about something that sometimes you get so involved in selling businesses that you don't realize that you have all these TLAs or three letter and acronyms that people don't understand. And so I just got a letter from one of my clients and he was talking about the difference between deal structure when selling a business.

And so we're going to cover what's the difference between a stock purchase agreement and an asset purchase agreement because they're, they're pretty fundamental and often in the LOI or the letter of intent, it's going to be listed whether they want to do a stock purchase agreement or an asset purchase agreement.

And so as both a seller and a buyer, often if you don't know which one to do, and I'll give you exceptions to the rule before we get through the entire video. But I like asset purchase agreements and there's some fundamental differences, and I'm going to go into those right now. So an asset purchase agreement means you're buying the assets of a company.

So you're going to set up another shell company and are going to buy the assets and you're going to put it in there. So. Uh, for example, when I was buying a, I personally bought a boat company I boat manufacturer for, for fly fishing. And many of you that know me know that I love to fly fish and we're up here in my mountain house right now and it's a raining day.

And I decided it's probably good to get some work done. So I bought it with an asset purchase agreement. And so when you do that, all you have to do is just get the assets of it and put it in there. So the differences are the liabilities of the old company. Don't transfer. So if they owe the bank $100,000 you buy the assets and you put them in there and they're unencumbered, and then they have to pay off the debt.

Obviously, if somebody has a loan on it, you can't sell the assets out from under them. So they're going to have to clear that debt with the proceeds and we can handle that in escrow. But an asset purchase agreement is means you're just buying the assets of a company. So it's not your job to find every liability that they have that sticks with the, with the other company.

So conversely, if you do a stock purchase agreement, now the due diligence is much harder. You have to find all the debts of the company, and often they, you can make promises or reps and warrants in the contract of what that means. But a stock purchase agreement means you're buying all the assets, all the liabilities of the company.

And sometimes you can do things like have the seller warrant certain risks and there's ways to do it, but stock purchase agreements are much more complicated. 80 to 90% of the deals that we see on high growth lifestyle companies are asset purchase agreements. Sometimes with our bigger companies, or they have a lot of IP or licensure, intellectual property.

And licenses. Stock purchase agreements make more sense. For example, uh, if you bought a company and it had a lot of licensure, let's take the boat manufacturer, right? We were licensed as a U S coast guard, uh, approved manufacturer. We were a boat dealer. We also were a car dealer because we had to put tags on the trailers for them to drive it home.

And we were ironically an auto manufacturer because we had to make the trailers and put a VIN on it. So that's a lot of licensure. It's a lot of one to three day classes, uh, that we had to take. So in that circumstance, when there's a lot of licensure, you can, if you want to, you can do a stock purchase agreement and the licenses transfer with the company.

Again, you have to be a little bit more careful about your diligence and making sure that you identify all the liabilities that the company might be exposed to. That includes environmental risks and business risks. So if you're not sure what to use, 80 to 90% of the. At the time, I would really recommend an asset purchase agreement.

If it's a company with less than $20 million in sales. There's obviously exceptions to it, and if you have any questions about what those exceptions are, what it looks like, why don't you just give us a, call it at freedom factory. You know, we have, you know, great middle of the fairway S PAs and APA has their stock purchase agreements and asset purchase agreements you can take to your attorney.

At Freedom Factory®, we have experienced and witnessed the explosive results of entrepreneurs aligning passion and purpose to create extraordinary value. However, most entrepreneurs have no idea how to maximize the value of their business and move on to the next chapter of their lives. That’s where we can help.

Freedom Factory® has radically disrupted the way high-growth, lifestyle companies are bought and sold, which historically was a horribly inefficient market. When I sold my first company in the 1990s, I went to several investment banks and sold my business to one of less than five companies they called. Looking back, I see exactly how much money I left on the table and knew that there had to be a better way. The bottom line is that entrepreneurs don’t speak banker, and bankers sure don’t speak entrepreneur.

https://tylertysdal.academia.edu/

Contact Tyler Tysdal at Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://freedomfactory.com/about-tyler-tysdal/

Freedom Factory Managing Partners

Tyler Tysdal https://www.linkedin.com/in/tyler-tysdal
Robert Hirsch https://freedomfactory.com/about-robert-hirsch

Who is Tyler Tysdal?

Tyler Tysdal is a lifelong entrepreneur who first discovered the joys and challenges of self-employment at the age of 14. Tyler Tysdal was a collector and trader of baseball cards and his budding entrepreneurial spirit spurred him to create Triple T’s Sports Collectibles, a national mail-order trading card and memorabilia business that found a wide audience through ads in trade magazines. While market inefficiencies were numerous in this pre-internet era, a young Tyler Tysdal experienced his first big business win with $14,000 a month of profit result. A lot of money for 14. It hit him during a ride with his mom to the post office to mail dozens of card shipments: He would likely be an entrepreneur and investor the rest of his career.

Additional Websites to Follow Tyler Tysdal

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https://tylertysdal.com/
https://sites.google.com/view/tylertysdal

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Additional News Sources:

https://www.globenewswire.com/news-release/2021/04/20/2213552/0/en/Award-Winning-Journalist-Natalie-Tysdal-Quits-News-Business.html

https://tricitydaily.com/tyler-tysdals-freedom-factory-teaching-entrepreneurs-secrets-of-selling-their-business-for-maximum-value/

https://tricitydaily.com/tyler-tysdal-talks-about-bitcoin-mining-and-cryptocurrency/

https://businessnewsideas.com

https://BEES.Social

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Big Mistakes Sellers Make Before Selling Your Business

Today's episode of the podcast, Robert Hirsch from Freedom Factory, discusses "Big Mistakes Sellers Make Before Selling Your Business."

 

Listen to the podcast, watch the video, or read the transcript below.

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Transcript of Podcast

Hey guys! Robert from Freedom Factory here, and I want to talk about something that comes up a lot when we start working with new sellers, and usually it sounds something like this, should I start a new revenue stream? Should I add a new channel? Should I build an affiliate program before I sell? And while this sounds like a good idea on the surface, in reality, not so much. And the reason for that is twofold. One, when you start a new revenue stream, it's going to burn as inefficiently as possible. And what I mean by that is your customer acquisition cost is going to be the highest and you're not going to add significantly to your bottom line.

Now, most of the time when you sell your business, it's a multiple of earnings. So you want to optimize for earnings. And so let's say for example you could build a new revenue stream, but you're not actually adding a lot of profits. Conversely, you could spend that same time taking your existing revenue stream and for example, let's say you can find an extra $200,000 in profitability through cost cutting on that.

Now that $200,000 in earnings, not only did you make that the first time, but if you sell for five times earnings, that's going to be another million dollars in revenue, or another million dollars in valuation to your business. And ultimately it's these little tips and tricks that make the difference whether you stick the landing or not, you're a business you've worked for years on, and it's the most important asset that you have.

And frankly, sticking the landing is just as important as building and creating a great company. If you have questions about this or anything else, why don't you give us a call it Freedom Factory. We look forward to speaking with you soon.

 

Thank you so much for watching. Please like and subscribe and we'll see you soon.

 

Contact Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver

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About Tyler Tysdal

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When Is the Best Time To Tell Employees That You are Selling Your Business?

When Should You Tell Employees When You are Selling Your Business?

At Freedom Factory®, we have experienced and witnessed the explosive results of entrepreneurs aligning passion and purpose to create extraordinary value. However, most entrepreneurs have no idea how to maximize the value of their business and move on to the next chapter of their lives. That’s where we can help.

Freedom Factory® has radically disrupted the way high-growth, lifestyle companies are bought and sold, which historically was a horribly inefficient market. When I sold my first company in the 1990s, I went to several investment banks and sold my business to one of less than five companies they called. Looking back, I see exactly how much money I left on the table and knew that there had to be a better way. The bottom line is that entrepreneurs don’t speak banker, and bankers sure don’t speak entrepreneur.

https://tylertysdal.academia.edu/

Contact Tyler Tysdal at Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/

Freedom Factory Managing Partners

Tyler Tysdal https://www.linkedin.com/in/tyler-tysdal
Robert Hirsch https://freedomfactory.com/about-robert-hirsch

Who is Tyler Tysdal?

Tyler Tysdal is a lifelong entrepreneur who first discovered the joys and challenges of self-employment at the age of 14. Tyler Tysdal was a collector and trader of baseball cards and his budding entrepreneurial spirit spurred him to create Triple T’s Sports Collectibles, a national mail-order trading card and memorabilia business that found a wide audience through ads in trade magazines. While market inefficiencies were numerous in this pre-internet era, a young Tyler Tysdal experienced his first big business win with $14,000 a month of profit result. A lot of money for 14. It hit him during a ride with his mom to the post office to mail dozens of card shipments: He would likely be an entrepreneur and investor the rest of his career.

Additional Websites to Follow Tyler Tysdal

https://soundcloud.com/tylertysdal
https://twitter.com/tysdaltyler
https://www.instagram.com/tyler_tysdal/
https://tylertysdal.com/
https://sites.google.com/view/tylertysdal

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Additional News Sources:

https://www.globenewswire.com/news-release/2021/04/20/2213552/0/en/Award-Winning-Journalist-Natalie-Tysdal-Quits-News-Business.html

https://tricitydaily.com/tyler-tysdals-freedom-factory-teaching-entrepreneurs-secrets-of-selling-their-business-for-maximum-value/

https://tricitydaily.com/tyler-tysdal-talks-about-bitcoin-mining-and-cryptocurrency/

https://businessnewsideas.com

https://BEES.Social

Listen to Freedom Factory's Latest Podcast

How to Identify Different Types of Buyers for Your Business

Freedom Factory can help you sell your business by finding the right buyer. They have experience in finding exactly the right fit so that they can market and sell your business for the best price.

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At Freedom Factory®, we have experienced and witnessed the explosive results of entrepreneurs aligning passion and purpose to create extraordinary value. However, most entrepreneurs have no idea how to maximize the value of their business and move on to the next chapter of their lives. That’s where we can help.

Freedom Factory® has radically disrupted the way high-growth, lifestyle companies are bought and sold, which historically was a horribly inefficient market. When I sold my first company in the 1990s, I went to several investment banks and sold my business to one of less than five companies they called. Looking back, I see exactly how much money I left on the table and knew that there had to be a better way. The bottom line is that entrepreneurs don’t speak banker, and bankers sure don’t speak entrepreneur.

Contact Tyler Tysdal at Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/

Freedom Factory Managing Partners

Tyler Tysdal https://www.linkedin.com/in/tyler-tysdal
Robert Hirsch https://freedomfactory.com/about-robert-hirsch

Who is Tyler Tysdal?

Tyler Tysdal is a lifelong entrepreneur who first discovered the joys and challenges of self-employment at the age of 14. Tyler Tysdal was a collector and trader of baseball cards and his budding entrepreneurial spirit spurred him to create Triple T’s Sports Collectibles, a national mail-order trading card and memorabilia business that found a wide audience through ads in trade magazines.
While market inefficiencies were numerous in this pre-internet era, a young Tyler Tysdal experienced his first big business win with $14,000 a month of profit result. A lot of money for 14. It hit him during a ride with his mom to the post office to mail dozens of card shipments: He would likely be an entrepreneur and investor the rest of his career.

Additional Websites to Follow Tyler Tysdal

https://sites.google.com/view/tylertysdal/podcasts
https://twitter.com/tysdaltyler
https://www.instagram.com/tyler_tysdal/
https://tylertysdal.org/podcasts/

Watch Podcasts from Tysdal and Hirsch on Instagram

Additional News Sources:

https://tricitydaily.com/tyler-tysdals-freedom-factory-teaching-entrepreneurs-secrets-of-selling-their-business-for-maximum-value/

https://allthetopnews.com/

https://futuresharks.com/freedom-factorys-tyler-tysdal-and-robert-hirschs-podcasts-offer-valuable-insight-for-entrepreneurs/

Award Winning Journalist Natalie Tysdal Quits News Business

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Watch the video or listen to Robert Hirsch in the Podcast.

 

Contact Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
Freedom Factory

Freedom Factory Managing Partners

Tyler Tysdal

Tyler Tysdal, Managing Director, Freedom Factory

Robert Hirsch

Entrepreneur, Investor, Speaker, Artist

Visit His Website

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Tyler Tysdal’s Freedom Factory Teaching Entrepreneurs Secrets of Selling Their Business for Maximum Value
Freedom Factory is a business brokerage founded by Tyler Tysdal and managing partner Robert Hirsch. Together they are educating entrepreneurs on how to sell their business for maximum value with their podcasts and videos.

Freedom Factory is located in the Denver Colorado metropolitan area and is helping business owners across all 50 states. Together Tyler Tysdal and Robert Hirsch are combining their over 20 years of experience to assist business owners in properly valuing their business as well as teaching them the steps on getting their business ready to sell. It takes careful preparation and proven strategies that they have learned and used over the years.
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Tyler Tysdal and Robert Hirsch Helping Entrepreneurs Sell their Business for Maximum Value
Tyler Tysdal, a seasoned investor, and entrepreneur has been helping young entrepreneurs sell their business for maximum value. He has achieved great success in the investment sector and showed the world the importance of making the right decision in the financial as well as the business sector. By utilizing his lifelong experience in the entrepreneurial world, Tyler Tysdal has been reaching to people who struggle to make the right decisions in the entrepreneurial sector.
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At the most basic level, a yield farmer may relocate assets around within numerous various DeFi protocols, regularly functioning to find the pool that is using the most effective yield from week to week. Using a proper method will make certain that you have maximum gain from yield farming. Also when you obtain rewards in the kind of the cryptocurrency you had actually purchased the top place, there are opportunities to earn much better. Returns from a Yield Farming project will certainly be in the type of the cryptocurrency you have currently transferred. Entrepreneurs in the crypto market will recreate typical financial tools within a decentralized setting, outside of the control of any kind of business or federal government. Next up is yearn.finance, which functions to relocate users' funds between different lending and also liquidity protocols to get the best interest rates. You can develop complex chains of investments by reinvesting your reward tokens right into various other liquidity pools, which consequently provide various reward tokens. Another incentive to include funds to a pool could be to collect a token that's out the free market, or has low quantity, by providing liquidity to a pool that rewards it. Balancer is a liquidity protocol similar to Uniswap and also Curve.

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Tyler Tysdal and Robert Hirsch are Helping Entrepreneurs Maximize The Sale of Their Business

Who is Freedom Factory

Freedom Factory is Helping Fellow Entrepreneurs With The Biggest Deal Of Their Life

At Freedom Factory®, we have experienced and witnessed the explosive results of entrepreneurs aligning passion and purpose to create extraordinary value. However, most entrepreneurs have no idea how to maximize the value of their business and move on to the next chapter of their lives. That’s where we can help.

Freedom Factory® has radically disrupted the way high-growth, lifestyle companies are bought and sold, which historically was a horribly inefficient market. When I sold my first company in the 1990s, I went to several investment banks and sold my business to one of less than five companies they called. Looking back, I see exactly how much money I left on the table and knew that there had to be a better way. The bottom line is that entrepreneurs don’t speak banker, and bankers sure don’t speak entrepreneur.

Contact Freedom Factory

Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver

Freedom Factory Managing Partners

Tyler Tysdal

Tyler Tysdal, Managing Director, Freedom Factory
https://freedomfactory.com/about-tyler-tysdal/

Robert Hirsch

Entrepreneur, Investor, Speaker, Artist

Visit His Website

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Freedom Factory is a business brokerage in Denver Colorado metropolitan area. But it is working and helping businesses across the country. It is co-founded by Tyler Tysdal and Robert Hirsch. Both of them have experience of over 20 years in this very field, which has helped them reach the maximum audience.

Their company, Freedom Factory, is helping entrepreneurs learn some efficient and very much needed business secrets. Together, Tyler Tysdal and Robert are teaching entrepreneurs how to sell their businesses for maximum value. They have podcasts and video lessons as well that are guiding entrepreneurs in selling their businesses.
https://www.theamericanreporter.com/through-freedom-factory-tyler-tysdal-is-helping-entrepreneurs-learn-some-business-secrets/

Tyler Tysdal, a Denver-based Broker, Points Out the Important Success Strategies for Beginner Brokers

Tyler Tysdal, a business broker, has enlisted the important strategies that every beginner should use to offer excellent services to its clients. The demand for business brokers is rising across the world and so is the competition in this very sector. In order to build a name in the world of brokerage, it is crucial on the part of every business broker to rely on certain success strategies to yield good results.

Before we delve deep into this subject, it is important for you to know a little about Tyler Tysdal. He is a successful business broker who is helping businessmen get the right value for their businesses in the market. Popularly known as Ty Tysdal, he is a Denver based business broker who along with his friend, Robert Hirsch, is providing his brokerage services at Freedom Factory.
https://www.californiaherald.com/tyler-tysdal-a-denver-based-broker-points-out-the-important-success-strategies-for-beginner-brokers/

https://tylertysdal.org/tyler-tysdal/

How to Prepare Your Business To Sell https://www.academia.edu/video/jYGwOl

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