I Dont Want My Employees, My Customers And My Vendors to knowing I’m Considering Selling?
Virtually every business seller doesn’t want his employees, customers or vendors to know that his business is for sale. Confidentiality is, perhaps, the most critical issue for any business broker and we take every precaution possible to protect that confidentiality including requiring signed NDA’s before releasing any information.
How Long Will It Take To Sell My Company?
There is a great deal of variation in the time frame, but, if we had to pick an average time, eight to nine months may be close. While this may sound like a long time, all of the facets of selling a company, including listing the business, finding buyers, interviewing buyers, writing contracts, due diligence and finally the closing process are all time-consuming.
Can I transfer a Lease to the new owner?
Transfer of a lease is crucial to the success of any transaction – it will be almost impossible to conclude a sale unless the lease can be transferred. A landlord’s rights regarding transfer will be specified in a clause in the lease. You may be required to remain as a guarantor of the lease and sometimes there may be a charge by the landlord for the transfer.
I Take Cash at my Business And its Not Always Recorded, How do I Include it to Value My Business ?
It is very, very difficult to prove to a prospective buyer that you have earned income that has not been reported. The only suggestion here is if you are not reporting income stop right now and maintain accurate records including all income. There are some businesses that do sell in spite of this fact.
What’s does Selling My Business Cost Me?
We operate a No Sale No Fee policy – payment is only made when the business is sold and we are paid at closing.
How Do I Determine What My Business Is Worth?
We will work with you to analyse your business’ value but the “Market” makes the final determination. Our estimates of value are not “certified business valuations” but we can arrange this service for a fee.
I Own The Property Where My Company Is Located, Do I Have To Sell That As Well?
This can be handled in many ways. Often the property is sold as a separate listing. However, the company owner will frequently retain the property, obtain a long term lease and earn an ongoing cash flow stream. Also, the property can aid a buyer’s ability to finance the business.
I Keep A Lot Of Cash, Inventory, And Receivables In My Business, What Generally Happens To Those Items?
Most small businesses are sold with the seller retaining cash and accounts receivable. A working level of inventory is generally granted to the new owner.
I Owe A Lot Of Money For Various Things That My Company Acquired Over The Years. What Happens To That Debt?
Most often, the company is sold free of all debt. This means that the former owner will be responsible for accounts payable as well as all long-term debt.
What Records Are You Going To Need From Me To Help Sell My Business?
The lack of good business records is the single most common reason for a business sales deal to fall apart. We can’t emphasize enough the importance of maintaining good books and records before selling. This includes accurate financial statements, cash register receipts or whatever records are necessary to prove income and expenses. Of course, current tax returns are a must. However, we are used to selling businesses that may have less than adequate records.
How Far In Advance Should I Start Planning My Exit Strategy?
Today, no later. Even if you think you are not ready to sell your company right now you can’t start preparing too early. One of our experienced agents will be more than happy to meet with you to help you to start thinking about your exit strategy.
Do I Need An Attorney And An Accountant To Sell A Company?
Buying or selling a company can be a complicated venture. While some companies are sold without the help of accountants and attorneys, we strongly recommend that both the buyer and seller engage professionals.