30) Reviewing John Dini’s “11 Things You Absolutely Need to Know About Selling Your Business”

John F. Dini’s Biography

John F. Dini is widely recognized as one of the nation’s leading experts on small business ownership. He is a consultant and coach to hundreds of business owners, CEOs and Presidents of companies. John is an outlier in coaching business owners, having achieved the incredible feat of delivering over 11,000 hours of face-to-face, personal advice to entrepreneurs.

Mr. Dini is the author of Hunting in a Farmer’s World, Beating the Boomer Bust and 11 Things You Absolutely Need to Know About Selling Your Business, now in its second edition. He is a serial entrepreneur currently operating his 12th company, and has conducted business in all 50 United States, Canada, South America, Europe and Asia.

John founded and operates the most successful peer group franchise in North America, overseeing 15 monthly meetings of business owners’ groups under the auspices of The Alternative Board®. He has a BS in Accounting, is a Certified MBA, and holds six additional certifications in exit planning, business brokerage, behavioral analysis, medical practice management, facilitation and coaching.

Mr. Dini writes numerous articles on small business topics for newspapers, magazines, and in his own blog “Awake at 2 o’clock?” at www.awakeat2oclock.com. He speaks frequently to business groups and national associations, and is a 11-year member of Jim Blasingame’s “Braintrust.” He also appears regularly on “The Small Business Advocate” nationally syndicated radio program as an expert in the issues of small business ownership.

11 THINGS You Absolutely Need To Know About Selling Your Business Book Review

In 11 THINGS you Absolutely Need To Know About Selling Your Business, Dini starts off by helping you answer one of the universal questions that many exit planning books ask: When should I sell my business?

His answer, however, is different than most. According to Dini, it’s time to START planning for the sale of your business the first time you have a rough day and think… “I don’t want to do this any more.”, or the first time that you look at your employees and wonder… “Are they better off than I am?”, or the first time you look at an opportunity to grow and think… “Being bigger would just mean more work and more responsibility.”

From there, he moves on to the 11 things you must know to complete the process.

11 THINGS You Absolutely Need To Know About Selling Your Business Outline

Chapter 1. When Should I Sell My Business?  
Chapter 2. The Boomer Bust?  
Chapter 3. The First Thing You Need to Know: Understand the Process of a Business Sale
Valuing Your Business
Setting Your Price
Defining Your Strategy to Sell
Preparing the Information Package
Advertising the Business for Sale
Dealing with Interested Prospects
Negotiating an Offer
Obtaining Financing for the Buyer
Due Diligence
Closing the Sale  
Chapter 4. The Second Thing You Need to Know: What Will You Do Tomorrow?  
Chapter 5. The Third Thing You Need to Know: Value and Pricing
What is my business worth?
Sale Price Assumptions
Fair Market Value
Valuation Methods
The Income Method of Valuation
The Asset Method of Valuation
The Market Method of Valuation
Seller’s Discretionary Cash Flow
Factors Influencing Price
The Dismal Ds
Disappearing Cash  
Chapter 6. The Fourth Thing You Need to Know: Buyers
Internal Buyers
Entrepreneurs
Professional Investors
Industry Buyers
Strategic Buyers
Fantasy Buyers
Targeting Your Buyer
Advertising the Sale
Web Based Listings
Print Advertising
Video Presentations  
Chapter 7. The Fifth Thing You Need to Know: Presentation is (Almost) Everything
Curb Appeal
Financial Records
Projections
Supporting Documentation
Presentation as Marketing  
Chapter 8. The Sixth Thing You Need to Know: Taxation Drivers
Stock vs. Asset Sales
Corporate Structures
Real Estate
Asset Allocation (IRS Form 8594)
Intangible Assets and Goodwill  
Chapter 9. The Seventh Thing You Need to Know: Financing
Financial Data
Buyer Financing
Non-bank Lenders
The U.S. Small Business Administration
Loan Approval  
Chapter 10. The Eighth Thing You Need to Know: Seller Notes
Financing the Entire Sale
Collateral and Security
Earn-outs
Lender Demands for Seller Financing
Whose Money is It?
Chapter 11. The Ninth Thing You Need to Know: Business Brokers
“I’ll sell it myself.”
Qualifying a Broker
Broker Fees
Exclusivity and Co-brokerage
Buyer Representatives  
Chapter 12. The Tenth Thing You Need to Know: Doing the Deal
Managing the Closing Process
Letters of Intent
Definitive Purchase Agreements
Contingencies and Conditions to Close  
Chapter 13. The Eleventh Thing You Need to Know: The Roles of Professionals
Damaging Your Interests  
Chapter 14. The Other Thing