Maybe the best place to start defining a MOU (Memo of Understanding) or LOI (Letter of Intent) is by explaining what it is not.  It is not a contract and thus legally binding but more like an outline to a potential offer. It’s like getting a coffee with someone your interested in dating.  Is that coffee a date or just a meeting will really depend upon where it goes from there.  For me, it’s more like my personal […] Continue Reading…

When negotiating your business sale price the discussion about a non-compete agreement will eventually happen.  A non-compete agreement is illegal in California but legal in most other states, so you will need to check your state laws when negotiating this.   Like most laws in California, there are two exceptions to the non-compete laws and that is between partnerships and when a business owners sells their company.  The law allows for a non-compete if the business owner sells […] Continue Reading…

According to the Webster dictionary the definition of negotiating is “ to confer with another so as to arrive at the settlement of some matter” or “to arrange for or bring about through conference, discussion, and compromise”.    This is very important to understand since many sellers believe that once a price has been agreed upon then the negotiations are over.  On the contrary, every buyer considers the escrow process a series of negotiations […] Continue Reading…

Let’s make sure that everyone is starting on the same page here when it comes to selling your business.  It is not the business valuation or sales price that you should be concerned about when it comes to exiting your business.  It is the actual, after-tax CASH, in your hand and let’s go play, money.  Straight and clear to the point here, stop worrying about how much your Company is worth and start […] Continue Reading…

I had an epiphany today!  I know that may sound stupid, but I needed to share.  It reminded me of when I was a kid, and I saw my kindergarten teacher at the grocery store.   It was weird to see her because I never envisioned her as a person with a life, but rather only as my teacher.  When I saw her in the store it was so out of context that I was taken […] Continue Reading…