Selling a Business: Frequently Asked Questions
You likely have extensive experience in operating your business; you know what it takes to make it successful. However, you have likely never sold a business before; this can place you at a competitive disadvantage when you negotiate with experienced buyers. Secondly, in order to maximize the selling price of your business, staying very focused on your business sales and profits just prior to its sale is of extreme importance. Spending many hours with prospective, unqualified buyers can divert your focus from your business. Many owners experience frustration, expense and time involved in trying to sell their business. Furthermore, it is very hard for you to maintain confidentiality when you attempt to sell a business on your own. Other owners have lost key employees and important customers because they did not maintain confidentiality in selling their business. Finally, you do not have access to a large number of qualified buyers. Many owners end up selling their business for much less than they could have by working with a business broker.
Experts say that business owners should begin preparing their business for sale the day they start the business! A wise owner will create an Exit Plan three to ten years in advance of selling the company. Doing so builds value in a company and gives the owner personal freedom to invest time in other priorities; time with God, family and friends. We never know when a business opportunity may come to us to sell our business; we want to be ready when it comes. Preparing a business for sale helps you to own the business, rather than the business owning you!
The best time to sell is when things are going well in your business; rising sales, profits and a positive forecast for the future. The time to sell is when you love the business; you don’t have to sell! You are in a position of strength. However, virtually any business can be sold. We can help you identify and effectively market the positive aspects of your company.
Many factors come into play regarding the length of time to find a buyer. They include: the price of your business, the type of business, your willingness to finance all or part of the purchase price and the market conditions. On average, it takes 6 to 18 months to find a buyer for a business. However our most recently sold businesses took less than six months to sell. Needless to say, establishing a fair price and offering better terms will reduce the time to sell your business.
There are a number of factors that impact the value of your company; cash flow, asset values, financial history, condition of equipment and premises, competition, location, and the economy. Empire Business Brokers will work with you to understand the value and enhance the saleability of your business.
Owners who have successfully sold their companies through a business broker cite the following advantages; 1. They stayed focused on managing their business during the selling process, thereby keeping their net profit up and maintaining the maximum sales price. 2. They maintained confidentiality about the sale therefore not alarming customers and employees, or giving a market advantage to a competitor. 3. They had professional assistance from the business broker through the selling process.
Empire Business Brokers have been serving buyers and sellers of companies for over 24 years. You will appreciate a number of benefits offered by Empire:
- Exit Planning
- Business Coaching and Value Enhancement
- Buyers who have been interviewed and screened
- Pricing and financing knowledge
- 24 Years Experience
- Advertising & marketing experts
We are experts in providing maximum exposure to buyers, while keeping the sale of the company confidential to employees, customers, and competitors. We will market your business to our large database of qualified buyers. We advertise on the internet, our large list of business buyers, CPA’s, Financial Advisors and other professional firms, social media followers of 13,000 connections, on our Empire Business Brokers site and eight business listing networks, giving your business exposure to the world wide web and a tremendous amount of internet users. Additionally, we may run generic ads in news outlets and business journals.
Lastly, for certain types of businesses we market to strategic buyers and venture capital groups.