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FAQs:
How will my business be valued?
That depends on your business itself. We can establish a range of values quickly based on our extensive database of completed transactions.
How much does a valuation cost?
A valuation is part of the package that I provide for free. This can save you thousands of dollars you might spend with another brokerage firm. In addition we offer an independent and more detailed appraisal from an firm that specializes in business appraisals, for a moderate fee. During the process we will establish a relationship and you can decide whether or not to hire me as your agent. You should carefully consider hiring any company that charges you a fee up front, or that agrees with whatever number you have for the value of the business and then wants payment.
If I hire you, what is the commission rate?
Commissions are always negotiable, so there is a wide range of fee structures available with different agents. Our standard fees (as a percentage) decline with the price of the business. A substantial effort in time and packaging will be made to market your business effectively.
My friend hired a business broker and wasn’t satisfied with his level of service or knowledge. What is different about you?
It doesn’t take anything more than a real estate license to become a business broker. It pays to interview more than one when you decide to sell your business. Never be pressured, the decision is yours and once you choose, remember that you will be dealing with that person for several months as the process proceeds. Check out the broker’s qualifications, licenses, professional credentials and education. Ask for references. Ask to see samples of the packages developed by the broker.
I want to sell my business in six months to a year. When should I start to prepare?
The best time to prepare for the sale of your business is as soon as you know you are going to sell. Talk to your accountant and attorney to get advice. Contacting a business broker early will help you do the right things in preparing your business for an easy sale.
How do I get the best value for the business?
Offer at a fair price, have all of your finances together. Avoid presenting the buyer with any surprises. First and foremost develop an effective marketing strategy. Knowing who your buyer will be and how to contact him will result in a successful transaction. An ineffective marketing strategy is a waste of time.
My business is not making any money, can it be sold?
Maybe. Some businesses are simply too small or do not have assets attractive to a buyer. Some businesses sell even without profits. I might be able to help you.
Can I avoid taxes on the gains from selling my business?
You can’t. The IRS will always get their fair share. However, a good broker will help provide information to your accountant and attorney that will help them to keep that fair share to a minimum. The tax structure of your company (ie. sole prop, C-corp, S-corp or partnership) the balance sheet and ownership structure all contribute to the complex process of getting the most money into your pocket.
What is the difference between a Stock sale and an Asset sale.
Taxes and liabilities.
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