A. Yes. In many cases the confidentiality of both sellers and buyers is important during the transfer of a small business, and is one of the many reasons to work with an experienced and professional Business Broker. All information received will be held in the strictest confidence and is shared with interested parties only after a confidentiality agreement has been signed and a strict set of qualification criteria has been met. We usually recommend that you do not disclose the pending transaction to vendors, employees or customers until the appropriate time. The appropriate time can vary from case to case, but generally it is after the closing process has been completed. However, we are accustomed to working with clients that have varying levels of concern regarding confidentiality, therefore we adjust our marketing programs to address each individual assignment.
Q. How much is my business worth?
A. Valuing a Businesscan be complex and is dependent upon many factors. We can assist you by offering our "Brokers Opinion of Value", or we can arrange for a formal, report based Business Appraisal depending upon your individual needs. When a formal Business Appraisal is desired, we use the services of the largest third party valuation company in America. They perform thousands of business valuations per year and have access to the largest database of closed transactions in the country. These extensive and detailed reports not only help with the decision to sell or not at this time, but also justify the offering price to prospective buyers if and when you do choose to go to market.
Q. How long will it take to sell my business?
A. There is a great deal of variation in the time frame, but the average time to sell a small business is approximately 6-12 months from listing-to-close.
Q. I have a long term lease with my landlord. Should I be concerned about its transfer?
A. Transfer of the lease is usually critical to the successful transfer of the business. Working with the landlord to enable a smooth transition is an important part of the process leading to a successful transaction.
Q. What generally happens to the cash, accounts receivable and inventory when I sell?
A. Small businesses are usually sold with the seller retaining cash and accounts receivable. A working level of inventory usually conveys to the new owner.
Q. What records do you need to prepare my business for sale?
A. The lack of properly maintained records is one of the more common reasons for an unsuccessful transaction. It is hard to over emphasize the importance good books and records can make in achieving a successful business transfer. This includes financial statements, receipts and whatever is appropriate for your business. Of course, tax returns are a must. However, we are accustomed to working with businesses with less than ideal records.
Q. How far in advance should I start to prepare for the sale?
A. The sooner the better. Even if you are not sure if this is the right time to sell your business, we can analyze the present value and marketability of your company, and determine the most productive and cost effective changes you can make to prepare your business for a future sale if needed. We provide you with the tools to make an informed decision. Whether your plans involve selling your business now or in the future, we can help.
Q. Do I need an attorney or an accountant to sell my business?
A. While some businesses are sold without the help of attorneys and accountants, we always recommend that both seller and buyer engage professionals at the appropriate time.
Q. What is your fee structure?
A. Our success fees are based on a percentage of the selling price, and are earned when your business sells. Ask about our "Flex-Fee Program" that results in significant savings and fees much lower than most Business Brokerage firms.
Q. Should I be concerned about confidentiality?
