How to Sell Your Business - Seller Questions

How do I sell my business? You have spent years, and in many cases decades — building up your business.
You are now ready to sell one of your largest assets but you have several questions:

  • Why should I use a business broker? I know my business better than anyone, shouldn’t I sell it?

  • How much is my business worth?

  • How long will it take to sell my business?

  • How do I keep my employees, customers and competitors from knowing the business is for sale?

1. Why should I use a business broker? I know my business better than anyone, shouldn’t I sell it?

A business broker will perform much of the leg work in the selling process, so you can continue to focus on growing your business. Selling a business is very time consuming. You can’t afford to have sales drop, because you are focused on the sale of the business and not the business itself.

There are many steps involved in selling a business and the majority of business owners do not have the time or knowledge to successfully sell their business for a premium.

You will be actively involved in the sale process, including talking with potential buyers.

Your broker will coach you on what to say and what not to say. Your broker will get your business global exposure while at the same time keeping the sale confidential. More exposure equals more interested buyers, and in most cases, this will lead to a higher selling price. It is estimated that a business sold by a professional broker will sell for 20% more than a business sold by the owner. Business Broker Experts has relationships with preferred SBA lenders across the U.S., which means you the Seller will not be the major note holder in your business sale.

2. How much is my business worth?

When confidentially consulting with us you will receive a FREE, no obligation, Brokers Opinion on what your business will sell for. Yes, financial performance is very important, but it is not the only factor buyers analyze.

Buyers are purchasing the future cash flows of your business. So Buyers also need to consider the risk to those cash flows.  The selling price is adjusted up or down based on the risk of the future cash flows for a new owner.  The more risk associated with your business, the lower the selling price will be. Future cash flow risks can be related to how your company is setup or external factors out of your control such as the industry you are in, potential government regulations or the state of the economy.

3. How long will it take to sell my business?

Selling a business is not easy and is not a quick process. We tell clients to plan on 6 to 12 months to find the right buyer. We have listed and sold businesses in 3 months, but this is not the norm. There are many steps that have to take place from the time you decide to sell until the time you leave the closing with a check. Nationally, only a small percentage of businesses successfully transfer hands.

One of the largest websites that lists businesses for sale is BizBuySell (which is one of the places we will advertise your business). BizBuySell can have 45,000+ businesses for sale at any given time. According to their recent Insight Reports, on average there are about 2,000 transactions (less than 5%) closed per quarter. Experience counts in this business, so place your business in the hands of an expert!

4. How do I keep my employees, customers and competitors from knowing the business is for sale?

This is not easy, but very crucial! Unlike selling real estate, you can’t put a for sale sign in the window. All of the advertising is generic in nature and pre-approved by you. No confidential information (business name, location, detailed financials, etc.) will be shared with a buyer until a comprehensive Non-Disclosure Agreement is filled out and signed by the buyer. Learn more on the Steps in Selling Your Business here.