Frequently Asked Questions & Answers about selling a business
Shouldn’t I try to sell the business myself and save money?
No, because it’s a lousy idea! Most for sale by owner businesses are over-priced and never sell. With an FSBO situation, there is a large risk of confidentiality violation which could destroy the business. Most buyer queries are from time wasters and it takes practice to sift through them. Selling a business is time-consuming and under an FSBO strategy, the business value could decline. Negotiations can be sensitive and impassioned and experienced intermediaries can manage them better than an owner. There are much more complex reasons an owner shouldn’t attempt to sell the business themselves.
What are the benefits of hiring a business broker?
Understanding how to sustain confidentiality is top of the list. Other advantages include:
- Experience in managing the complexity of business sale deals
- Maximizing sale profits
- Streamlining the sales procedure to minimize business interruption
- Getting past the emotional issues that inevitably come up
- Helping to minimize other advisory costs
How should I select a business broker?
This is a good question, as it is an important decision with profound implications. You want a broker with proven experience, not someone who just hung out a sign on their door yesterday.
Beware of generalists, you need to make sure the broker is the right fit for your business. You want a broker who concentrates on selling the type of business you own, be it a tech company, a restaurant, or a graphic design firm. Also of importance is whether the broker you decide to work with typically handles sales of your category. If they are used to managing £10 million deals and your deal is £2 million, they are likely not going to give your deal the attention you would like.
Are real estate brokers also business brokers?
Most real estate agents are not business brokers, but having said that, some are. The representation and selling of a business compared to real estate require completely different strategies to the sale process. For example, in most cases, keeping confidentiality is of the highest importance in business sales, but not a problem at all in real estate sales. If you have a business you feel is of value, don’t engage someone who deals in real estate transactions.
Some business brokers have real estate licenses for the purpose of selling any real estate that may come with a business. But they only make use of the license when an owner wants to sell or lease the building that houses the business they are selling.
What about a multi-listing sales services?
Confidentiality is a critical consideration. Selling a business is not the same as selling a house. Disregard the idea of selling through a multi-listing service. It’s a bad idea.
My business is fairly new and I still have some of my business loan to pay off. Can I sell it?
George Beamish from The Debt Line says there are several ways to sell a company with debt. You can sell the company on with the debts, in which case the seller may set a higher price for the company and settle the deficits in the process of the sale, or they will set a more economical price and pass all liability for them onto the new owner.
Why should I use Your Company to sell my business?
Another great question! We are glad you asked.
- We provide a no-fee, no-obligation evaluation service to give a broker’s estimation of value.
- We identify the barriers you face to a successful sale.
- We identify possibilities to raise the value of the business.
- Experience counts and we have plenty.
- We will be honest regarding the strengths and weaknesses of your business.
In short, we know how to sell your business at its maximum value while reducing the need to implement seller financing.