Why do I need a business broker?  From BBP Press, a business broker:

1. Maintains confidentiality

2. Knows and gathers pertinent information

3. Recasts financials

4. Has valuation knowledge

5. Understands goodwill value (70%-90% of total value)

6. Maximizes the value of the company

7. Provides an overview of tax consequences to the parties

8. Has relationships with professional experts

9. Clarifies what is being sold: describes the historical and sells the future

10. Has market knowledge and understanding

11. Possesses multi-pronged marketing strategies

12. Has database of prospects

13. Has understanding of various financing options

14. Has contacts with appropriate specialists

15. Is affiliated with other competent professionals in the Business Broker community

16. Possesses negotiating skills and understanding of emotional issues of the parties

17. Acts as the buffer between parties, thereby allowing seller time to make reasonable decisions

18. Has the ability to better control the issues

19. Coordinates and facilitates sell-side and buy-side activities with associated specialists and advisors such as: landlords, accountants, tax attorneys, transaction attorneys, insurance carriers, lenders, escrow processors.

20. Permits the seller to maintain focus on running their business

21. Is not emotionally tied to the business; able to maintain objectivity in process and transaction

Why do I have to finance some of the purchase price for the buyer?

1.  Surveys taken by leading business brokerage firms show that most buyers feel more comfortable when an owner stands behind their company with a percentage of financing.

2.  Buyers trust the owner of a business if some part of the sale is financed.

3. The burden of selling a business shifts from the seller to the buyer when there is financing involved

4.  When part of the sale is financed you can ask more for the price and earn interest on the balance.

5.  Most banks will not finance a new buyer in an existing business, but after three years of ownership they will.  With that in mind, we recommend that the contract includes a balloon payment due in three years when the new buyer can then refinance the amount they owe you.

How long will it take to sell my business?

In today's market the average business will take nine months to sell, depending on how good your books are, what your terms are, and how reasonably priced it is.  (The last business that was reasonably priced closed in the first 30 days!)