Q: How long will it take to sell my business?
A: On average, between six to nine months to sell most businesses to find the right match of the right buyer for the right business. Keep in mind that an average is just that.
Some businesses will take longer to sell, while others will sell in a shorter period of time. There are many buyers looking right now, but your business must be the exact one that appeals to the buyer at this exact time. Not only must your business be just right, the price and terms must fit into our buyer's ability.
We will make every effort to bring interested and qualified buyers to you as quickly as possible.
Q: What is the value of my business?
A: Ultimately a business is only worth what the market will pay. This will be dependent upon a number of factors:
How much are the assets of the business worth?
How much positive cash flow does the business generate?
How stable is the goodwill of the business?
What opportunities are there to expand the business?
How stable is the workforce?
Does the business have security of premises?
How dependent is the goodwill upon the current owner?
In summary, valuing a business is multi-faceted, and no set formula works for all.
Determining the value of the business is the first step in preparing the marketing plan.
Q: What happens when there is a buyer for my business?
A: When a buyer is sufficiently interested, we will assist in the preparation of a written offer to purchase. This Purchase Agreement will spell out the buyers offer in detail. The offer will contain several contingencies that the buyer feels must be met before the transaction goes to actual closing. We will present all offers to you for consideration until you find one that is acceptable to you. This is a contract and you will have the right to accept, counter or reject. It is important to know that time is important and this contract will expire if you do not respond. If you accept the offer, or you counter it and the buyer accepts your counter, be prepared to do some fast work to remove the contingencies.
Q: When should I tell everyone about the sale of my business?
A: Although it may sound cold, experience has shown that it is best to tell everyone about the change after the closing. The transfer of ownership should appear seamless, with no real change in relationships. Most employees will stay with the new owner, vendors will accept the continuation of agreements and customers will not notice any difference. Of course there are exceptions: a key employee may need to know to assist in the training, suppliers may need to approve the credit of the new buyer, written agreements will need to be approved by the vendors and the buyer, leases will need to be approved, permits and licenses put in place, utilities transferred and other situations that may arise pertaining to specific business requirements.
Q: Do I need to use a lawyer? An accountant?
A: It is strongly advised that both the buyer and the seller make use of appropriate professionals.