SELLING A BUSINESS
How do you charge for your consulting services?
In most instances we charge only a performance based commission. That is, we get paid upon closing of a sale. Usually our fees are paid by the seller, but in some cases the buyer pays the commission. We also provide advice on an hourly basis depending upon the circumstances.
Is selling a business like selling real estate?
Although some business owners sometimes liken selling their business to selling real estate, there are many differences. The sale of a business needs to be carefully structured to consider the tax consequences for both buyer and seller. Furthermore, there are a number of intricacies involved in defining what is actually being transacted:
Is it a stock or asset sale?
What assets are included? Is the real property included, are accounts receivable included in the sale?
Which liabilities are included in the sale?
How will the purchase price be allocated to the assets?
How can you sell my company and prevent my competitors and employees from knowing the company is for sale?
Sellers are justifiably very concerned with maintaining confidentiality. No good can come from customers or employees finding out about a pending sale before the owner wants them to find out. The best way is to retain an outside consultant who can deal with all of the issues as they arise and negotiate and answer questions on behalf of the owner. We do not reveal the name or identifying characteristics of companies we represent for sale until a Non-Disclosure Agreement is signed. Even with a signed Non-Disclosure we stage the release of information based on the level of seriousness and commitment demonstrated by the prospective buyers.
How long does it take you to sell a business?
It is a very difficult question to answer. We have sold businesses in as little as a month. In other cases, it can take as long as six months or longer. An important factor is the availability of accurate and complete financial information, customer sales and margin information and the capability to respond rapidly to buyer questions. In addition, it depends on the business climate, the industry, the seller's own time frame, the selling price and other factors that are not always predictable.