Frequently Asked Questions – Selling
Q: How long does it take sell a business?
A: Your selling time depends on how well you prepare information, market, and sell.
- Do it properly = 3-6 months
- Do it badly = can take years
Q: Why should I sell my business through a business sales broker and not sell myself?
A: Our licensed and experienced business sales brokers cover every detail in planning for your business sale, from positioning it for the highest price, to marketing it. We work hard on your behalf, leaving nothing to luck, ensuring that the right buyers are connected with you in the shortest possible timeframe.
Q: How should the price for selling a business be set?
A: A business sales broker knows the market better than anyone. The price you paid originally has no bearing on today’s value. A business sales expert will use several different valuation methods and recommend the highest price they can achieve.
Q: When should staff and customers be informed that the business is up for sale?
A: It’s best to tell them just as your advertising commences. Tell all staff when they are together; don’t let it filter out gradually. Tell them face-to-face in a group meeting, not by email.
Q: What does it cost to sell?
A: Your total exit budget should be 10-15% of your sale price. This includes:
- Lawyer – Advice or guidance on contracts, business sales agreement, staff, leases
- Accountant – Advice on tax planning, debt reduction, capital gains
- Business Sales Broker – commission upon successful sale
- Marketing – the business needs to be advertised
- Preparation – a Business Profile Document and Due Diligence Package will usually be completed
*NOTE – A top-class business broker will achieve a sale price much higher than you could get selling yourself, or an inferior business broker will reach. Also they will sell it much faster. This means you will typically walk away with more money in your pocket when you can have the best person selling for you.