What You Should Know About Selling Your Business.
Selling your business is a major decision! You have devoted your time, money and energy to building, running and operating your business. It may well represent your life’s work. You may be deciding that now is the right time to sell, and you want the very best professional guidance you can get. This is when working in tandem with a professional business broker can make the difference between just getting rid of the business and selling it for the very best price and terms!
The following are some of the most common questions asked by sellers. The responses are based on both experience and knowledge. If you have any question that we have not covered, please don’t hesitate to ask us.
Q: What Can Business Brokers Do - And What Can't They Do?
Business Brokers are the professionals who will facilitate the successful sale of your business. It is important that you understand just what a professional business broker can do, as well as what they can’t. As your business broker we can help you decide on how to price your business and how to structure the sale so that it makes sense for everyone – you and the buyer. We can find the right buyer for your business and work with you and the buyer in negotiating and coordinating every step of the way until the transaction is successfully completed.
We will also help the buyer with all of the details of the business buying process. A business broker is not, however, a magician who can sell an overpriced business. Most businesses are saleable if priced and structured properly. You should understand that only the marketplace can determine what a business will sell for. The amount of the down payment you are willing to accept along with the terms of the seller financing can greatly influence not only the ultimate selling price, but also the success of the sale itself.
Q: How Long Will It Take To Sell My Business?
It generally takes an average of six to eight months to sell most businesses. 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. The sooner we have all of the information needed to begin the marketing process, the shorter the time period should be. It’s also important that the business be priced properly from the start. Some sellers, operating under the premise that they can always come down in price, overprice their business. This theory often ‘backfires’ because buyers often will refuse to look at an overpriced business.
Q: What Happens When There Is A Buyer For My Business?
When a buyer is sufficiently interested in your business, we will help in the preparation of an offer or proposal. This offer or proposal may have one or more contingencies. Usually they involve a detailed review of your financial records and may also include a review of your lease arrangements or property ownership documents, operating procedures, or other pertinent details of the business. We will present the buyer’s offer or proposal to you for you consideration. You may accept the offer, or you may make a counter proposal. You should understand, however, that if you don’t accept the buyer’s proposal, the buyer can withdraw at any time.
We will submit all offers to you for your consideration. At first review, you may not be pleased with a particular offer; however, it is important to look at it carefully. It may be lacking in some areas, but it might also have some pluses to consider. There is an old adage that says “the first offer is generally the best one the seller will receive.” This does not mean that you should accept the first, or any offer – just that all offers should be looked at carefully.
When you and the buyer are in agreement, we will work with both of you to satisfy and remove any contingencies in the offer. It is important that you cooperate fully in this process. You don’t want the buyer to think you’re hiding anything. The buyer may, at this point, bring in outside professionals to help them review the information. When all of the conditions have been met, final papers will be drawn and signed. Once the closing has been completed, money will be distributed and the new owner will take possession of the business. As your business broker, we will work with you throughout the entire sales process
Q: What Can I Do To Help Sell My Business?
You can cooperate fully with all professionals that you may be using. A buyer will want up-to-date financial information. If you use accountants, work with them on making current information available. If you ware using attorneys, make sure they are familiar with the business closing process. You might also ask if their schedule will allow them to participate in the closing on very short notice. Times\ is of the essence in any business transaction. The failure to close on schedule permits the buyer to reconsider or makes changes to the original proposal.
Q: What’s Selling My Business Going To Cost Me?
A: Transworld has no upfront fees. We will analyze your company and go through the entire process with no cost to you. Your only obligation is when we find a buyer for your business. We traditionally receive our payment at closing.
Q: How Do I Determine What My Business is Worth?
A: The analysis of your business’ value or worth is another crucial function of the business intermediary. “The Market” makes the final determination of value. At Transworld, we have tremendous experience in valuing almost any business. Our estimates of value are not “certified business valuations” although we can provide this service for a fee. However, our experience and volume of comparable businesses allows us to give the business owner a very good estimate of value
And, finally, your team of advisors must all be working towards the common goal of selling you business for the best price and terms available in the marketplace, and closing the sale as quickly as possible! Remember that as your professional business broker, we are on your side. Only by working closely with us can we best handle your business interests.