Q. Is there a fee or other expense due before I sell my business?
A. We do not charge a sellers fee unless and until you complete the sale of your business. All sellsers fees are usually paid at the closing table, deducted from the gross proceeds of the business sale.
Q. How long does it take to sell a business in NE FLorida?
A. The overall average from listing a business for sale to closing is about 6-8 months. Some businesses sell faster than others and some take much longer. Keep in mind that this time frame includes the total time from listing yor business to closing, and includes marketing, finding and qualifying buyers, negotiating the contract, due diligence, financing, etc.
Q. What is my business worth?
A. Valuation is a crucial step in the selling process. We will conduct a comprehensive analysis of your business and your financial statements. We use the Market Data Method to determine the best, most achievable sales price in the market based on an analysis of sales data from comparable companies. In the end, “The Market” will determine the value, but setting the right listing price will help you to effectively market and sell your business.
Q. What if I have been taking cash out of the business?
A. It is often very difficult to prove to a buyer that you have income that is not documented in your company’s financial statements. And there’s an old expression – you can’t have your cake and eat it too! The bottom line is that bank financing is based on business tax returns. However, we can in many cases help you to get at least some of the added value that additional revenue would bring to your company.
Q. What records are needed to sell my business?
A. Conducting a thorough business valuation and preparing a comprehensive file to present your business to prospective buyers are key to the success of the sales process and the due diligence review. You should give us copies of your business tax returns and/or financial statements for the last three years and the current year, copies of important documents like leases and franchise agreements, a comprehensive list of all of your equipment, furniture and fixtures, an inventory report and other relevant documents important to understanding your business.
FAQ’S – FOR BUSINESS BUYERS:
Q. How do I find the right business for me?
A. The first steps to finding the right business to buy are to outline your requirements (revenue, net income, location, type of business, etc.), determine how much you can invest in a business, and then develop search criteria to identify potential opportunities. We will work with you with the objective of matching you to the best business opportunity available, at each step in the process. A key factor to your success as a business owner will be finding a business that you can develop a passion for – something you will want to work hard for – not only to make money but to enjoy doing it. People do better when they love what they do!
Q. How can I finance the business acquisition?
A. The most common ways to finance the purchase of a business include equity credit, owner financing and SBA financing. The method you use will depend on the size of the business, the quality of the documented historic earnings and the owner’s willingness to provide financing. We can also assist you with putting money in a 401k account to work purchasing a business with no tax penalties.
Q. How do I know the business’s financial results are accurately represented?
A. Once you determine that a business fits your requirements and you have negotiated a contingent purchase contract you will have the opportunity to conduct a due diligence review of the business. During due diligence you will have the opportunity, yourself or with a CPA, to review the detailed financial records, invoices, bank statements, contracts, leases, etc. that will help you to determine the accuracy of the business records. Generally, any significant discrepancies between the financial results as presented and the underlying proof documents is reason for you to either revise or cancel the purchase contract with return of your initial deposit.