Business Sale – Better with a Business Broker

Business Sale - Better With A Business Broker: International Business Brokers Association Mollie Horning/ March 08, 2017 March 8, 2017 – INDEPENDENCE, OH – So you’re going to sell your business. How are you going to keep your focus while undertaking what might be the biggest financial transaction of your life? And how are you going to make sure you maximize your selling price or get a fair deal on what you’re buying? There’s so much that goes into selling or buying a business. That’s why the International Business Brokers Association (IBBA) is launching a campaign called, “Better with a Business Broker.” “We want to raise awareness among business owners of the value and expertise that business brokers provide,” explained Kylene Golubski, Executive Director of the IBBA. “All too often business sellers think they can do it alone, or that having an accountant or attorney handle the paperwork is good enough. But there is so much more than paperwork involved; especially if the … [Read more...]

Why is seller financing so important to selling my business?

Surveys have shown that a seller who asks for all cash, receives on average only 70 percent of his or her asking price, while sellers who accept terms receive on average 86 percent of their asking price. That's a difference of 16 percent! In many cases, business opportunities that are listed for all cash just don't sell. With reasonable terms, however, the chances of selling a business increase dramatically and the time period from listing to sale greatly decreases. Most sellers are unaware of how much interest they can receive by offering seller financing (financing the sale of their business). In some cases it can greatly increase the amount received. And, again, it tells the buyer that the seller has enough confidence that the business can, indeed, pay for itself. … [Read more...]

What happens when there is a buyer for my business for sale?

When a buyer is sufficiently interested in your business for sale, he or she will, or should, submit an offer in writing. This offer or proposal may have one or more contingencies. Usually, the contingencies concern a detailed review of your financial records and may also include a review of your lease arrangements, franchise agreement (if it is a franchise for sale and there is a franchise agreement), or other pertinent details of the business. You may accept the terms of the offer or you may make a counter-proposal. You should understand, however, that if you do not accept the buyer's proposal, the buyer can withdraw it at any time. 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 seriously 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 … [Read more...]

What can I do to help sell my business?

A buyer will want up-to-date financial information about the business for sale. If you use accountants, you can work with them on making current information available. If you are using an attorney, make sure they are familiar with the business closing process and the laws of your particular state. You might also ask if their schedule will allow them to participate in the closing on very short notice. If you and the buyer want to close the sale quickly, usually within a few weeks, unless there is an alcohol or other license involved that might delay things, you don't want to wait until the attorney can make the time to prepare the documents or attend the closing. Time is of the essence in any business sale transaction. The failure to close on schedule permits the buyer to reconsider or make changes in the original proposal. … [Read more...]

What can business brokers do – and, what can’t they do?

Business brokers (or business intermediaries) 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. They can help you decide how to price your business for sale and how to structure the sale so it makes sense for everyone -- you and the buyer. They can find the right buyer for your business, work with you and the buyer in negotiating and along every other step of the way until the transaction is successfully closed. They can also help the buyer in all 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 … [Read more...]

How long does it take to sell my business?

It generally takes, on average, between five to eight months to sell a 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. The sooner you have all the information needed to begin the marketing process, the shorter the time period to sell your business should be. It is also important that the business for sale be priced properly right from the start. Some sellers, operating under the premise that they can always come down in price, overprice the business opportunity. This theory often "backfires," because buyers often will refuse to look at an overpriced business for sale. It has been shown that the amount of the down payment may be the key ingredient to a quick sale. The lower the down payment, generally 40 percent of the asking price or less, the shorter the time to a successful sale. A reasonable down payment also tells a potential buyer that the seller has confidence in the business's … [Read more...]