Friday, May 19 2023
How To Sell Your Payroll Service
Selling your payroll service is a life-changing event. And while most owners are successful entrepreneurs, the majority of them have limited experience when it comes to selling their business.
10 'Must Read' Tips BEFORE Selling Your Payroll Service.
#1: Hire A Broker Who Knows The Payroll Industry - The vast majority of owners in the payroll industry don’t know where the landmines are when selling their business. A broker can help you in these key areas:
#2: Retain Experienced Legal Counsel - This may be a once-in-a-lifetime event for you, and you need to make sure you choose an experienced attorney.
#3: Update Your Corporate Files, Records, And Agreements - A review (and clean-up) will save you some significant time and costs with a buyer.
#4: Re-Examine All Contracts - From lease contracts, employment contracts, loan agreements, shareholders, and vendors, all need to be reviewed for termination wording, etc.
#5: Create An Internal Team - The selling process takes a lot of work, and you will likely need help from people familiar with the business, i.e., CFO, spouse, HR manager, etc. In some cases, your internal team is given a bonus if they stay on for X weeks post-closing.
#6: Consider Your Tax Issues - Take a moment to consider if there are any major financial and/or tax consequences – and then work with your tax and legal advisors about how best to maximize your situation.
#7: Determine A Post-Closing Employment - Depending on how your deal is structured with a buyer, you may want to stay on a consultant to maximize retention.
#8: Pay Attention to A Buyer’s LOI - The LOI is often the primary document you will enter into with a buyer. While most LOIs are normally “non-binding,” it’s an important document because it sets out the parties’ general expectations. IMPORTANT: Review your LOI with your key advisors before signing it.
#9: Your Staff – Based on how your deal was structured, you need to know what will happen to your employees post the sale.
#10: Know The 'Restrictive Covenants' - Restrictive covenants are the details in your LOI/Purchase Of Sale agreement that could present you from starting a new business, contacting past clients and referral partners, to hiring past employees. Talk with your attorney(s) about your plans so they negotiate them into the purchase agreement.
About The Author:
Glenn Fallavollita is a highly acclaimed keynote speaker renowned for delivering invaluable sales and marketing advice to business owners and sales leaders, enabling them to win more payroll sales and produce more referrals from their database of clients and referral partners.
Additionally, Glenn is the president of SellMorePayroll.com and Drip Marketing, Inc. and has written 50+ whitepapers and three sales/self-marketing books, Supercharge Your Payroll Sales NOW!, Stop Whining AND Start Selling, and Drip Marketing: A Powerful New Marketing Strategy That Gets Prospects To Buy From You. He also writes blogs for LinkedIn and other national websites.
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