Seller FAQ
Frequently Asked Questions
What can I do to help sell my business?
A buyer will want up-to-date financial information. If you use accountants, you can work with them on making current information available. If you are using an attorney, make sure they are familiar with the business closing process and the laws of your particular state.
How long does it take to sell my business?
It generally takes, on average, nine months to sell most businesses. Keep in mind that an average is just that. Some businesses will take longer to sell, while others will sell in a shorter period of time. The sooner you have all the information needed to begin the marketing process, the shorter the time period should be. It is also important that the business be priced properly right from the start. Some sellers, operating under the premise that they can always come down in price, overprice their business. This theory often “backfires,” because buyers often will refuse to look at an overpriced business.
What happens when there is a buyer?
When a buyer has a strong interest in your business, they will typically submit a written offer or letter of intent. This proposal often includes one or more contingencies, most commonly related to a detailed review of the company’s financial records. Additional contingencies may involve reviewing lease agreements, franchise agreements (if applicable), and other material aspects of the business.
As the seller, you may accept the offer as presented or respond with a counterproposal. It is important to understand, however, that until an agreement is finalized, the buyer may withdraw their proposal at any time if the terms are not accepted or if contingencies are not satisfactorily addressed.
Why should I go to a business broker?
A professional business broker adds significant value on the sell side by positioning your business effectively and exposing it to a broad pool of qualified buyers. Brokers often have access to buyers you would not reach on your own and understand how to market businesses discreetly while maximizing value. In fact, many transactions result in buyers pursuing opportunities different from what they initially sought, allowing brokers to match your business with motivated buyers who recognize its true potential. By managing outreach, screening prospects, and guiding negotiations, a business broker increases both the likelihood of a successful sale and the quality of the outcome.
