Sell Your Business FAQ
Why should I use a Business Broker to sell my business?
Business Owners who have sold a business in the past will likely tell you it is a long, stressful process. Selling your own business can actually hurt the value of your business as it takes your focus away from the day to day operating of your business at a critical time when you should be increasing or at least maintaining your current business. When a Business Broker assists you in the process it can pay off in more ways than just the price obtained. Business Brokers will help properly value your business, reach out to buyers they already have, reach a larger number of new buyers, allow you to continue running your business rather than taking your focus away, maintain confidentiality and most importantly assist with the closing of your transaction based upon experience and training. The most common mistake potential Sellers make is comparing the selling of their business to selling a house. Unlike realtors, we keep your listing entirely confidential and work with you each step of the way until we sell your business.
Why biz values.com?
With unsurpassed experience, offices across the U.S. and the globe our “buyer reach” is unique. Our Business Brokers are experts in the field of business evaluation, business sales, business marketing and buy/sell negotiations to satisfy both buyers and sellers alike. We customize our marketing based on business type and aggressively seek out qualified buyers.
How is my business for sale kept confidentially?
Unlike the sale of a home or even commercial building businesses do not have a “for sale” sign. We use “Blind Marketing” and work under a strictly confidential process; all buyers are required to sign a Buyer Confidentiality Agreement prior to detailed information about your business being provided. This helps to prevent employees, suppliers, customers, and competitors from finding out that you are selling your business.
How will my business be advertised?
We create a custom marketing plan specific to your business. Once we analyze and evaluate the business we reach out to our custom proprietary database of qualified buyers. This can include “cold calling,” email, print, social media, industry-leading websites, and executive off-line marketing strategies.
How do I know how much my business is worth?
Bizvalues.com proven methods of valuing and marketing will put your business in the best possible position to sell. We utilize technology and our experience to determine to price.
How long will it take to sell my business?
The average properly priced business tends to sell in approximately 90 days however this time frame can vary greatly based on the income of your business (and how easy it is to prove), type of business, the terms offered and the area in which your business is located. We can provide you with more information on your local market.
Will Buyers be visiting my business?
After a Buyer has signed an NDA (Buyer Confidentiality), reviewed initial information and expressed further interest in your business we will schedule an appointment for a buyer to visit the business at an appropriate time and day suitable for business.
How do Buyers write offers to buy my business?
Most Buyers looking at your business will be represented by a Professional Business Broker who will assist them in writing an offer that expresses their price, terms, contingencies (if any) and request for further documentation (if any). The offer will then be presented to you for your approval by bizvalues.com and your Broker and/or the Buyer’s Agent. If a buyer is not represented, we will prepare a Purchase Agreement.
Who will handle all the inquiry calls on the sale of my business?
Bizvalues.com is experienced with interviewing potential buyers and understanding who goes to the qualifying level and who is not ready to move on.
Who will handle the negotiations on the sale of my business?
We are negotiating experts. We will work with you and handle the “back and forth” process which is part of every transaction.
How long will I have to train the person who buys my business?
This is a negotiable point that we end up working out between both parties. Some types of businesses only require a week or two of training while other more complicated businesses may require a longer familiarization period. If a longer period is required we often find that Sellers will negotiate a consulting fee for extended training periods.
After I sell my business can I open another one at some point in the future?
All Buyers will ask that you sign a covenant not to compete within a certain area and/or time period. This is standard procedure outlined in the Purchased Agreement.
Will I need to finance part of the purchase price of the business?
There is no requirement that you “seller carry” on your business however in today’s market it is very common that Buyers will ask for some type of Seller Carry Note. We also work with SBA and lenders and in many cases to “pre-approve” the business for lending which in reality opens your business to a larger pool of Buyers.
When should I notify my employees that I am selling the business?
While you may have a close relationship with your employees it has been proven time and time again that the best time to tell your employees is when you introduce them to the new owners. This may be difficult for you emotionally, however, experience dictates that silence is the best practice. The exception to this rule would be if a “key” employee is part of the negotiation for the Buyer to keep them on after the sale is complete. In this case, there may be some advance notice required to this person and this person alone. We will guide you through the proper timing for this very important part of the business sale- timing is everything!
Do we qualify the Buyer by checking their credit?
We do not check the credit of Buyers however through the offer and acceptance process you may request that the Buyer provide you with a copy of their credit report. This is not often asked of the Buyer as the property owner and/or landlord will likely be obtaining a credit report for their review.