Seller – FAQ

Seller

How long will it take to sell my business and how long is your contract?

According to the Business Brokerage Press, the average time for the sale of a small business was 212 days from the date of listing to the day the seller received a check. Our experience is that some deals come together within 60 days, while others can take quite a bit longer. Due to these statistics our average deal runs from 6-12 months, and we look for a 12 month contract. Only a careful analysis of your company will allow us to more closely project the estimated time.

Can I engage you and still sell the business myself?

We work with exclusive contracts only,  but you have identified a potential buyer, we will arrange for a reduced success fee for that one particular buyer.

How will you market my business while maintaining confidentiality?

Confidentiality is extremely important to us!  We will obtain and review very specific directions on communication with you and/or your trusted staff members with whom you have confided with. We understand that you may not want it known in the marketplace that your business is for sale, this is a common issue that professional business brokers deal with.

How do I calculate the value of my business?

When it comes to determining the value of your business, there are a lot of options depending on your business and industry. Business Valuations provide a look at your company in many different ways, from cash flow to physical assets. We provide various levels of business valuations, which will be discussed in the first meeting.

Will my employees know I am selling my business?

Each company has different needs but typically employees are not told of the sale until such time that the seller and buyer agree the time is right.

Will I need my lawyer and accountant?

Yes!  Your attorney and accountant will be instrumental in creating a win/win deal and should be made part of the team as soon as possible. If your attorney is not experienced in business transfers, we are happy to provide a list of experienced M&A lawyers for you to choose from.  Tax implications will be critical and your accountant should be conferred with early on in the process.

Am I ready to sell my company?

Below are a few key questions to ask yourself if you are considering the sale of your company. These questions are for your own use. You must answer honestly to aid you in determining if now may be the right time to sell your company.

  • Do you have a clear reason for why you want to exit your company?
  • Are you prepared to train a new owner in transitioning ownership?
  • Have you planned what you’ll do with your time when you no longer have an office to go to?
  • Have you had your company appraised? Will the sale be sufficient to finance your next life?
  • Are you truly committed to selling if your financial expectations are met?
  • Do you have ideas as to who might be the best buyer for your company?
What is the Fair Market Value of a business?

The fair market value is an estimate of what a willing buyer would pay to a willing seller, (both having equal knowledge of the business and transaction variables) in a free market, for an asset or piece of property under conditions where neither party feels pressured or obligated to buy or sell.  If a transaction occurs with the aforementioned conditions the transaction price is usually the fair market value. This is not the same as intrinsic value that an individual may place on an asset, meaning what he or she feels the selling/purchasing price should be based on personal preference.

What are the types of buyers for my business?

There are generally three types of buyers for a business.

  • The job finder is looking at replacing you as owner and operator: their motivation is employment.
  • The financial buyer is looking at your business as an investment: their motivation is financial gains.
  • The strategic buyer is looking to add your company to their own business: their motivation is assets.

Get In Touch

1250 Bethleham Pike, #101
Hatfield, PA 19440
(267) 217-6088
info@nexusbusinessassociates.com