Guidance for Entrepreneurs on Selling a Business Featured on Kauffman's eVenturing(TM) Site.

KANSAS CITY, Mo. -- For most entrepreneurs, deciding whether and when to sell their business is one of the toughest calls. To help them evaluate their options, Kauffman eVenturing(TM) (www.eVenturing.org), a Web site for growth-oriented entrepreneurs operated by the Ewing Marion Kauffman Foundation,

"Emotions can run high when an entrepreneur contemplates whether it's time to sell his or her company," said Judith Cone, vice president of Kauffman Foundation's entrepreneurship initiatives. "That's why it pays to step back to fully understand your true goals, gather key data and objectively analyze your decision."

This new collection, written by financial experts and several entrepreneurs who have successfully sold companies, offers business owners practical guidance on timing and other difficult issues, such as deciding who to sell your company to, whether to seek a buyer yourself or use an investment banker, how to get the best price once you do decide to sell and how to tell your employees. Following are some highlights:

--"Communicating an Acquisition to Employees" by Bill Carpenter, former CEO of TEAL Electronics and chair of the San Diego Social Venture Partners, recounts his experience in selling TEAL and how his decision to keep his employees informed about the impending sale allayed their concerns and kept everyone on board.

--"Preparing Your Company for Exit" by Robert M. Okabe, managing director, RPX Group LLC, notes that preparing for the sale of a business is similar to raising capital, combined with aspects of a strategic review. All require thorough preparation, including a business plan, cash flow projections, demonstrating Sarbanes-Oxley compliance practices, financial statements, compiling tax records and more.

--"Strategic or Financial Buyer Options" by Robert Muir, partner, Prometheus Equity Partners Pty Ltd, recounts his experience selling Ceramic Research Inc. to a strategic buyer in order to gain access to markets critical to the company's future growth. He also evaluates the plusses and minuses of seeking private equity financing.

--"Using Investment Bankers to Sell Your Company" by James Geshwiler, chairman of the Angel Capital Association and managing director of CommonAngels, provides helpful guidelines for entrepreneurs who decide to retain an investment banker to handle the sale of their business, covering such issues as how to determine whether they'll be better served by selecting a large or small IB firm, a generalist or industry specialist and what level of attention their deal is likely to get.

--"Responding to an Unsolicited Buyer" by Andre P. Galliath, president of Ceramic Products Group, Dover Corporation, provides insight on how entrepreneurs should vet unsolicited offers to sell their businesses, discarding those that are simply looking for bargains or quick resale opportunities. He notes that the best queries are those from a company with acquisition criteria that will benefit both parties.

--"Is it Time to Sell?" by Thomas L. Churchwell, managing partner of ARCH Development Partners L.L.C., outlines the common situations that trigger the decision to sell a business and counsels entrepreneurs to prepare themselves ahead of time by asking probing questions, such as: "Why am I really doing this? and "How do I really measure success?"

--Tools and Templates: Included are an array of practical tools to help entrepreneurs who decide to sell their companies, such as explanations of common tax issues, potential litigation traps, and key terms and conditions every entrepreneur should understand before a sale.

"This collection is a valuable resource for entrepreneurs who have reached the crossroads in deciding whether or not they should sell their business," observed William Payne, a Kauffman Foundation entrepreneur-in-residence. "It will help entrepreneurs understand common practices, anticipate issues that may arise during negotiations, and prepare themselves and their employees for the sale."

The Kauffman eVenturing site is dedicated to serving the needs of growth-oriented entrepreneurs. Every month, a new collection of articles on key themes of interest to entrepreneurs -- such as finance and accounting, people and human resources, sales and marketing, products and services, operations and the entrepreneur (e.g., strategy, culture, leadership) -- is featured on the site. The collections contain a mix of original articles and a carefully reviewed aggregation of some of the 'best of the best' existing Web material on the topic at hand.

To read the full collection on "Selling Your Business," please visit the Kauffman eVenturing site at www.eVenturing.org.

About the Kauffman Foundation

The Ewing Marion Kauffman Foundation of Kansas City is a private, nonpartisan foundation that works with partners to advance entrepreneurship in America and improve the education of children and youth. The Kauffman Foundation was established in the mid-1960s by the late entrepreneur and philanthropist Ewing Marion Kauffman. Information about the Kauffman Foundation is available at www.kauffman.org.