How to Sell a Business in Oregon

There is no sales tax in Oregon, thereby making it an attractive state if you plan to buy a business. However, when you consider selling a business in Oregon, there are still a few unique considerations that must be dealt with because of the regulatory requirements of the state such as the registration of the business with the Secretary of State.

Key Takeaways

• Maintaining complete and accurate financial records is one of the most important elements when you sell a business Oregon. This is the basis for a correct valuation especially when methods such as market, income, and asset-based approaches are used.
• Due diligence in the business sale ensures that the interests of both parties are taken into account. This is done in the sales structuring phase whereby business owners as sellers can sell the business according to their target price and buyers can purchase at an acceptable price.
• Documentation is essential in the negotiation process. Hiring the help of professional business brokers will aid in a faster and more efficient selling process.

Preparing Your Business For Sale

The first step in sales preparation is always to make sure that the business records are well-kept, especially when it comes to financial transactions. This is especially important when it comes to the valuation of the business.

The valuation methods professionals use when valuing your Oregon business are either the income approach, asset-based approach, or market approach. When the financial records are maintained accurately, valuation will be smooth and correct.

Once the value of the business has been determined, the next step is finding qualified buyers. With an excellent marketing plan, advertising your business for sale will be a breeze. Hiring professionals who have vast experience in selling businesses can help you screen potential buyers thoroughly.

Structuring The Sale

“How do I structure the deal when I sell my business in Oregon?” This is perhaps the most commonly phrased question by business owners who plan to sell.

Determining the value of the business and finding qualified buyers are done efficiently with a carefully structured sale. This means transparency of business records that will help buyers ease into the business should they consider buying. This will anyway be part of the due diligence process. You must be prepared to deal with the legal considerations when selling a business in Oregon. This includes the necessary permits, licenses, and agreements.

Part of structuring the sale is to provide buyers with financing considerations of your Oregon business. In selling your business, always look at ways for potential buyers to look at your business as a lucrative and smooth business transaction.

Negotiating The Sale

Finally, when a buyer and seller agree to conduct business together, back-and-forth negotiations are inevitable. Naturally, business owners will want to make the most of the sale and buyers want to get as much value for their money as possible.

Included in the negotiations are the payment terms and schedules and transition support. New management will need the help of the old management to ensure the continuous operations of the company.

One of the most effective negotiation strategies in closing the deal is to have professionals represent you such as business brokers who are equipped with the right skill to close the deal.

FAQ

Q #1: What are the considerations on how to sell a business in Oregon?

A #1: Factors include the valuation of the business, the structure of the sale, and negotiations before closing the deal.

Q #2: What role do business brokers play in selling a business in Oregon?

A #2: Business brokers ease the burden of sellers in the sales preparation, correct business valuation, finding potential buyers, and negotiations. They ensure that the interests of both parties are taken into consideration.

Q #3: What should I consider when selling an Oregon small business?​

A #3:  Ensure your business complies with all local, state, and federal regulations. Verify that all licenses and permits are still valid and transferable. Consider the market conditions to determine the optimal time to sell.

Q #4: Are there specific Oregon regulations I should be aware of when selling my business?

A #4: Familiarize yourself with relevant statutes, such as ORS Chapter 56, which outlines the duties of the Secretary of State regarding business sales.

Conclusion

On average, the timeline expectations when selling a business in Oregon take 6-10 months. Preparation, marketing, and closing the deal can all take 3 months, depending on the market conditions. Recent surveys indicate a positive outlook among downtown Portland Oregon businesses, with improvements in safety and cleanliness contributing to renewed confidence in the area’s economic future, making it an ideal time to sell business Oregon.