|
|
|
|
FREQUENTLY ASKED QUESTIONS Why should I use an intermediary instead of selling it myself? Selling your business is typically a once in a lifetime activity for the business owner. Your expertise is in operating and running your business, ours is with selling businesses--not real estate. This is not the time to be "penny wise and pound foolish". Using a professional can assist you in the valuation process, screening buyers, arranging financing, working with attorneys and closing the deal. There are many places where a deal can fall apart, our focus on closing the deal can help you get a deal back on track and work through the many emotions associated with a selling your business. Also, we screen and qualify buyers to present only those that are serious about buying your business. Ask any owner who tried to sell their business on their own, there are many "tire kickers" and "perpetual buyers" in the marketplace. They will tie you up, waste your time and distract you from your business. Let us take that burden off your shoulders. How do I determine the value of my business? Valuing businesses is more of an art than a science. From applying "Rules of Thumb" to an in depth analysis, Sunbelt can assist you in calculating the value of your business. Simple formulas or pricing comparisons typically used in real estate cannot be applied in valuing businesses. For more information on a formal third-party valuation, please see the valuation page of this web site. Business Valuations How do I interpret the financial information of my business? Proper interpretation and presentation of the financial information is one of the most important first steps in the selling process. Typically, the financial statements of a small business are prepared for tax purposes. They are not prepared for the selling process or obtaining a loan. As a result, they do not accurately reflect the true profitability or cash flow of a business. The Sunbelt professionals work closely with you to "recast" your Company's financial statements so that potential buyers or lenders accurately interpret the economic value of your business. We will work with you to quantify the discretionary pre-tax cash flow that would be available to a buyer or to service the debt. How long does it take to sell a business? The business sale process generally takes from 3 to 18 months depending on various factors. The most typical range is from 6 to 12 months. It is important to work with multiple buyers throughout the closing process. This helps prevent you from starting from the beginning, should negotiations fail for any reason. Is seller financing required? Nearly all small business transactions involve some seller financing. It is the "glue that binds" the seller to deal to help achieve its long-term success. Banks typically do not want to lend for business acquisitions. Banks look for security on their loans, and goodwill is typically the largest asset in the sale of a business. Goodwill is generated from the cash flow earned by the business from serving its customers. As banks do not have the expertise of running businesses, they are hesitant at foreclosing on a business for fear of closing the business. Banks prefer to use hard assets as collateral. Seller financing fills the void between the selling price and the amount the buyer has as a down payment. Sunbelt also works with one of the largest SBA lenders in the country. We can work with a seller to prequalify a business to increase the cash available to the seller at closing. How long must I train the buyer? A thorough training and transition period is crucial for the success of the sale of the business. The length of time is dependent upon the skills of the purchaser. The more familiar the buyer is with the industry, the less time they will need from the seller. The transition period involves training relative to the details of the business, as well as transitioning the relationships with customers and vendors. Initially, a full-time "hand holding" period is needed by the buyer. This is typically followed up by a part-time or phone availability period from the seller. Buyers typically look for a 1 to 3 month period to be included in the purchase price. A longer transition period can be arranged for remuneration. How do I get started? As a seller, call us to arrange a confidential meeting at a time and location that is convenient for you. We can provide you with a worksheet to help you calculate the recast cash flow of your business. This is the first step in calculating the value of your business. Once this worksheet is completed, we will work with the outside valuation firm to calculate and prepare a formal valuation for your business. Obtaining a formal valuation will expedite the sale of your business as it is a third party determination of the value of your business. This will provide comfort to the potential buyer as to the value of the business. With the valuation in hand, we will finalize the listing agreement and begin marketing your business. We will screen and present to you qualified buyers. It is that simple. As a buyer, call us to arrange an orientation meeting. We will ask you to fill out a Background Form that will provide us with information on you. This will allow us to better help you and your family with finding the right business opportunity for you. After we have a chance to review the Background Form, we will call you to arrange a confidential meeting. Before we provide you with any detailed information on a business, we will ask you to sign a Non-Disclosure Document as the sale of most businesses are done on a very confidential basis.
|
|
Send mail to
comments@easyspan.com with
questions or comments about this web site.
|
