Frequently Asked Questions
What is my business worth?
A business is worth the value of it’s assets plus an amount of goodwill derived from the future earnings potential. Many business owners throw around the buzz word “earnings multiple” when talking about business value however, this multiple was determined using more complex calculations. The first step to knowing what your business is worth is to speak to us. Contact us today for a no obligation chat.
How long will it take to sell my business?
A business may take up to 2 months before it is ready to be put in the market. This will depend on how fast our clients get back to us with the information we need. Once the business is ready to go on the market, it usually takes between 4 to 12 months before the business gets sold.
Do you have a ready pool of buyers?
We are in touch with buyers who are looking for businesses that match their criteria. Unfortunately, it is not as simple as matching a business before we have done a valuation and “packaged” the business. A business is a complex entity that require deep study of financials and the business to ensure that it is ready to be presented to a buyer. We will not present a poorly prepared business to any buyer.
What kind of financial information will you need?
Most buyers will require at least 3 years of financial statements prepared by an accountant. Ideally we should have 5 years. The financial statements need only be a Compilation (notice to reader). For businesses over $1 million in value, it is essential to have an Accounting Review Engagement done for at least the most recent year. The reason is because many buyers finance the purchase with debt and the banks require this accounting assurance level.
What will I need to do during the sale process?
When you choose to work with us, we do all the heavy lifting. As a client, the initial stage where we are gathering business and financial information from you might take up a couple hours of your time over a span of 1-2 weeks. Once the market goes on the market, we make sure to screen buyers and meet them first to weed out tire kickers. Once we feel a buyer is serious, we arrange a buyer and seller meeting. At this meeting, the seller answers buyer questions under supervision of our broker. The buyer is also able to tour the premises. Over the entire marketing process, a seller may meet up to 2-8 buyers until an offer is obtained. A seller’s time is minimal during the marketing phase but increases during due diligence and closing.
What is it like working with you?
We are easy professionals to work with and are always on top of our game. We never pressure you to make any decision and respect the fact that to us, its just a commission, but to you it is your life’s work. Remember, we have been business people too and understand you.
I like to consider working with you. What is the first step?
The first step would be to contact us and have a chat over the phone. We know you are a busy person as we are and want to make sure that there is a potential right fit for us to work together. If the call goes well, we schedule a no obligation meeting to discuss in more detail and learn about your business.