A BORSA Plan Can Help You Sell Your Business

For your small business to have achieved the success you are currently enjoying you no doubt spent years exhausting your time, energy and money. That being said you might feel a bit hesitant when looking to put it on the market, but the good news is that now is a great time to sell. According to BizBuySell, an online business marketplace, 2008 sale prices were much higher compared to 2007. What accounts for this trend in a time of economic downturn? Supply and demand. As simple as that answer may seem, it is no less true. Overall, the total number of business for sale nationwide has declined due to business owners waiting for the economy to improve so that they can sell at a higher price. In turn, more employees are facing layoffs and are looking for new ventures. Supply is down, but demand is up, which allows sellers to gain the upper hand.

In an ideal market, selling would seem like a breeze, but unfortunately some budding entrepreneurs cannot afford to purchase a business at this time. If you have the perfect buyer lined up, but then hit a snag when said buyer does not have the dough, all is not lost.

The DRDA/CPA firm has the solution to your problem with a powerful financing alternative that just about anyone can use to purchase a small business. This innovative concept is called a BORSA (Business Owners Retirement Savings Account) plan. What makes a BORSA plan unique is that it utilizes the retirement funds you have stored in a retirement account such as a 403(b), 457, or IRA rollover. You can access these accounts before the specified age of withdrawal without incurring penatlies, taxes or distributions.

By discussing alternative financing options with a potential buyer you are closer to sealing the deal. One of the many knowledgeable DRDA/CPA team members will gladly educate you as to the benefits of a BORSA plan so that you can pass it on to buyers.

A few quick tips for selling your business:

Destroy Debt – Pay off as much debt as you can handle, but start small. Paying off even small debts will clean up your books and get them ready for a buyer’s review.

• Rev Up Revenue – Continue putting your marketing plan into action to bring in customers so that your business will continue to flourish and attract buyers.

• Know Your Market – Every city sees a downturn differently, so do a little research on businesses sold in your area to see how well you may fare in marketplace.

Now that you have an idea of what it takes to sell a business, get buyers' attention by offering them a purchasing solution. In addition to savings money or an SBA loan, a BORSA plan is a smart, hassle-free source of start-up capital. To learn more about how a BORSA plan works so that you can enlighten prospective buyers, contact DRDA/CPAs at 281-954-6040. Don’t let a sell slip through the cracks, call today!