Business Owners
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- Value Assessment
- Financier Dictionary
- FAQ
Frequently Asked Questions
Q: What is your fee?
Our fee depends on the final selling price. Unless otherwise agreed to, it is always a small percentage of the overall selling price. In other words, we only get paid if the business for sale closes. We will establish a set fee structure upon meeting with clients.
Q: Do I have to hold the note (mortgage) to get it sold?
No, holding a note (mortgage) on the business is entirely up to you, it plays no role on whether we take the listing or not. NOR is it necessary to get the business sold. We have multiple lending sources in place that we are confident will lend to the buyer(s). Some owners hold the note for an ongoing revenue stream and others to reduce the tax burden. If you are unsure, consult with your accountant and or attorney.
Q: Do I have to own the real estate to sell the business?
No, 95% of all businesses sold are on lease where the business owner did not own the real estate or did not want to sell the real estate.
Q: Do I have to sell the real estate?
If you own the real estate then selling it is up to you, it plays no bearing on our taking the listing. Some owners hold the real estate for an ongoing revenue stream, others as an investment and still others to reduce the tax burden. If you are unsure, consult with your accountant and or attorney.
Q: Do you take all businesses opportunities?
No, we only take a select number of businesses for sale and we only take listings that we feel confident in selling. Since you are not paying us up front, we need to be selective on the listings that we take. If we do not feel that we can sell your listing then we will be honest and tell you before any agreements are presented for signing.
Q: What percent of businesses sell and how long does it normally take?
If using our standard nine month agreement, we find that between 45% to 50% sell in the first nine months (national averages are at 35%). If it sells in the first nine months then we find it generally takes 7-8 months. If we both decide to extend our agreement after nine months then we find this success rate nearly doubles, it takes time to sell a business and you should understand this. But keep in mind that averages are just that, we have sold businesses much sooner than 7-8 months and we have had great businesses that did not sell in 15 months.
Q: Is this arrangement exclusive or can I work with multiple brokers?
Our agreements are exclusive because we do not charge any up-front fees and we are putting our money and resources into each listing. However, we would work with any other broker out there under our co-brokering arrangement so you would get the best of all worlds (we'd split the commission with the other broker) yet you can feel assured that the process is being managed through our stringent code of confidentiality and ethics.
Q: What if my business does better than shown in financial statements?
Cash businesses comprise the majority of businesses being sold nationwide. You have to be honest and up front with us and be able to prove this "shadow" cash flow to a buyer. There are many ways to do this depending on your type of business.
Q: How do you value a business and what if I want more than you show?
First, the market value analysis is based on a combination & multiplier of your cash flow together with your fixed assets like equipment and inventory. If our analysis is lower than you wanted then we will first talk about it and - if we still do not come to agreement on a price - we can either contract a Third Party Valuation or we go our separate ways. WE DO NOT sign anything until we are both happy with the market value on your business - you have nothing to lose by having the analysis done. FYI - we almost always come in higher than the owner expected.
