There will inevitably come a time when you’re ready to move on from owning and operating your small business. When that time comes, you’ll need to determine your best option for exiting your business. In many (if not most cases), that will mean preparing for someone to acquire your business. Today’s post details some of the considerations and steps you can take to better position your business for a successful acquisition.

The Bigger Your Company, The Less Options You May Have

I know, it seems counterintuitive. But if you think about how many people are willing or able to pay $1M versus $10M for your “small” business, it’s easier to see that the larger your company, the fewer potential buyers there may…

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When purchasing a small business, many buyers overlook one important aspect of the deal: transferring intellectual property rights. Typically, IP rights include copyrights, trademarks, patents, and other non-disclosure rights. I’ve highlighted three basic questions you should always ask before you purchase a small business.

Can you and do you want to transfer the business’ trademarks?

In some situations even if the trademarks are transferable, you may not want to transfer them. For example, the business’ logo may infringe on rights of another business. You obviously wouldn’t want to transfer ownership and risk being held liable for trademark infringement once you own the logo.

In other instances, the trademarks may not be transferable if the seller does not have the right to transfer…

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Washington state continues its effort to be one of the more corporate-friendly states by passing a bill that streamlines the process of converting one business entity to another. Senate Bill 5999, which was signed into law by Governor Inslee on March 27, 2014, amends Washington’s Limited Liability Company Act and the Business Corporation Act to allow conversions of Washington LLCs, corporations, and limited partnerships. What’s more is that the bill also allows entites formed in another state (“foreign entities”) to convert into Washington LLCs and corporations.

The bill is set to be incorporated in the Revised Code of Washington in early July 2014. Stay tuned for the updated RCWs!

Why Would You Convert Your Business Entity?

Depending on your type of business and…

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At some point during the life of your business, there’s a good chance that you’ll need to figure out the value of your small business. Valuing a small business is not an easy task, and there are often pitfalls if you don’t have business valuation experience. Knowing the basics of business valuation will help you understand how to value your business or at least how your business may be valued by a valuation professional. Today I’ve highlighted some of the main points from a recent post on the iVLG blog that discusses business valuation basics.

What is Value?

According to most, including the IRS, value is the price a willing buyer would pay a willing seller (when there are no other circumstances…

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