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Selling
a Business
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Q: How long will it take to sell my business? |
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A: The time needed for sale depends
on a great many factors, including
the price of your business, the type
of business, your willingness to
finance all or part pf the purchase
price and the market conditions.
On average, it takes 60 to 180 days
to find a buyer for a business with
whom you enter into a ratified contract.
Obviously, the more reasonably priced
and the better the terms offered,
the faster the sale. Your SUNBELT
business broker can discuss with
you how your business fits into these
general guidelines. |
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Q: How will my business be advertised? |
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A: We first market
your business to our large database
of qualified buyers. We advertise
on the internet, on the SUNBELT site
and several other business listing
sites, giving your business exposure
to hundreds of thousands of internet
users. Since SUNBELT has over 300
offices worldwide, your business
will have exposure in all areas of
the country. Many buyers will relocate
for the right business. We may run
ads in local and national press as
well as trade publications. To ensure
your confidentiality, all marketing
excludes any specific identifying
information on your business, just
general descriptions. |
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Q: What types of offers should I expect
to receive? |
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A: An astute buyer is going to structure
the initial offer to insure that
they get the best possible price
and terms from you. Therefore, you
should expect to receive a low initial
offer. Don't be offended - this is
just an initial offer to "test
the waters". It's the first
step in the negotiation of an appropriate
purchase price for your business.
All offers will contain some important
contingencies, including review of
the financial books and records of
the business, obtaining a satisfactory
lease and agreement on training and
transition period. Other contingencies
specific to your business may also
be included. Contingencies are normal
and provide the buyer with the opportunity
to verify the information presented
in the marketing materials. |
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Q: How long is the training period for
the buyer? |
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A: Generally, you will be expected
to provide two weeks to two months
training in the business with equal
time of telephone consultation. Remember,
if you are financing any portion
of the purchase price, you still
have an investment in the business,
so properly training the buyer is
in your best interest. |
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Q: Will I have to sign a non-compete
agreement? |
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A: Usually, yes. A
wise buyer will takes steps to protect
his investment and this could reasonably
include preventing you from setting
up another competitive business,
though they are usually restricted
to reasonable geographical areas
and timeframes. |
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Q: When should I tell my employees about
the sale? |
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A: Although it sounds harsh, our
considerable experience has proven
that it is best to tell your employees
about the sale immediately before
or immediately after the sale is
complete. Of course, if there is
an employee whose expertise will
be needed after the sale, you should
introduce the buyer to this employee
shortly before closing. Your SUNBELT
business broker can assist you in
determining the timing for notifying
employees. |
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Q: Does SUNBELT financially
qualify the buyer? |
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A: The CIPD say “The
seller has a responsibility to conduct
a full and meaningful consultation
with employees at the earliest practicable
time. Failure to conduct consultation
results in liability for the payment
of compensation which may be
up to 13 weeks' pay. The seller and
buyer are both liable for any
award of compensation made by an
employment tribunal for failure to
inform and consult.” However,
there is no specific time limit given. |
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Q: What can I do to help sell my business? |
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A: As SUNBELT
begins the process of selling
your business, there are certain
things you can do to help us.
- Keep normal working hours.
- Make sure your financial
records are an accurate reflection
of revenues and business
only expenses.
- Conduct business as usual.
Do not let inventory levels
dip below normal.
- Keep the business clean
and in good repair.
- Remove equipment or furniture
that is not part of the sale.
- Provide us with required
information in a timely manner.
- Be as accommodating as possible
in setting appointments to
meet with buyers.
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