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Frequently Asked Questions: Selling a Business

How much is my business worth?

Determining the worth of your business is a complex and critical task, as it directly influences the outcome of your business sale. Valuing a business requires a deep understanding of various financial, operational, and market factors. There are several methods commonly used by mergers and acquisitions professionals to assess the value of your business including: 1) Asset-Based Valuation 2) Market Comparable Analysis 3) Discounted Cash Flow 4) Earnings Multiplier Method 5) Industry-Specific Method 6) Rule of Thumb Method We can provide you with guidance in this area, but also recommend an independent valuation if revenues can support it.

How long will it take to sell my business?

Selling a business is typically not a fast process and will depend upon the status of your financial and operational recordkeeping, the industry demand in the market, and key Revenue and NOI/EBITDA metrics. Other areas that can impact your sales timeline include: industry, competition, and marketing capability to create an attractive narrative around your business and its future.

How will you market my business?

Because every business is unique, it is necessary to develop an equally unique marketing strategy to generate qualified prospects. We utilize the most advanced marketing technology, data analytics, and marketing strategies to identify, attract, and nurture qualified leads for your business. Marketing plans typically include: Database marketing, Social Media, Email Marketing, Paid Advertising, and Direct Mail.

What types of businesses do you specialize in selling?

Every firm has a unique capability in terms of helping clients market their businesses. We specialize in "Main Street" business transactions with revenues between $250,000 and $15 million. If you fall outside of this range, we can still help you by locating a broker who has expertise in your business type and revenue range.

What do I need to do to prepare for the sale?

Preparing to sell your business can feel overwhelming, however, we can guide you through the process. Initial first-steps to prepare for your sale include: 1) Get your books in working order. Work with your Accountant to ensure you have up-to-date Profit and Loss Statements for the past three years, a current Balance Sheet, and a generally understand all major line items. It is important that all financials are reviewed by an Accounting professional prior to engaging buyers. 2) Be able to convey the strengths and weaknesses of your business. Educated buyers will challenge you on many aspects of your Asking Price and valuation — it's critical to be able to explain trends in your financial statements. 3) Have a plan in place for a smooth transition. We will help you document this transition, but it is helpful to create a working list of items which need to be addressed. 4) Gain clarity and seek advice from your attorney on the structure of the sale (Stock versus Asset Sale). This decision has important tax implications and it is best to understand this prior to having your business listed.

How long will it take to list my business?

Once your listing contract has been signed, it takes approximately 3-4 weeks for us to create all of your marketing materials, Offering Memorandum, and online listings.

Want to learn more about the process of selling your business?
Read more about tips for Buyers and Sellers.

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