What Can Business Brokers Do?
CIS Business Brokers are licensed professionals who will facilitate the successful sale of your business. We help decide an opinion of value for your Business and how to structure the sale so it makes sense for everyone. CIS Brokers understand the importance of confidentiality. Potential buyers are screened and a confidentiality agreement is signed before detailed information concerning your business is released.
How Long Does It take to Sell My Business?
It generally takes on average, between six (6) to twelve (12) months to sell most businesses. Keep in mind that this is just an average. Some businesses will take longer to sell, while others will sell in shorter periods of time. The sooner we have all information needed to begin the marketing process, the shorter the period of garnering a potential buyer chould be.
Why is seller financing so important to the sale of the Business?
Surveys have shown that a seller who asks for all cash receives on average 70% of their asking price while a seller who accepts terms receives on average 86% of their asking price. That’s a difference of 16%! With reasonable terms, however the chances of selling increase dramatically and the time period from listing to sale greatly decreases.
What Happens When There Is A Buyer For My Business?
When a buyer is sufficiently interested in your business, we will help in the preparation of an offer. This offer may generally include contingencies, usually concerning a detailed review of your financial records, your lease and other pertinent details of the business. The buyer’s offer will be presented to you for your consideration. You may accept the terms of the offer or you may make a counter-offer. We will submit all offers to you for your consideration; ALL offers should be reviewed carefully. When you and the buyer are in agreement, CIS professional Brokers will work to facilitate the satisfactory removal of all contingencies in the offer.
What Can I Do to Help Sell My Business?
You can cooperate fully with CIS and any other professionals that you are using. A buyer will want up-to-date financial information. If you use accountants, you can work with them on making current information available. Time is of the essence in any business sale transaction. The failure to close on schedule permits the buyer to reconsider or make changes in the original offer. Finally, your team of advisors must all be working towards the common goal of selling your business for the best price and terms available in the marketplace, and closing the sale as quickly as possible. Remember that, as your licensed professional Business Broker, CIS work for you and therefore is on your side. Only by being as cooperative as possible with us can we best serve your business interests.
What Information Should I Provide My Broker?
To properly price, market and sell your business, your business broker relies on you to provide accurate information about your business, it is important for us to understand the strengths and weaknesses of the business. Don’t hide anything. A buyer’s due diligence usually uncovers any “surprises” and many times prohibits the sale. Below is an initial list of documents that you should provide as soon as possible to assist in the sale of the business.
- Financial Statements – P&L and Balance Sheets; three years is preferable
- Copy of Tax Returns (Three years)
- Copy of Lease agreement
- List of Fixtures and equipment that will be included in the sale
- Copies of licenses, inspections and any pertinent documentation for the operation of the business
- Information on the company (sale brochures, menus, press releases)