When is the best time to sell!

The best time to sell is when a business is doing well. Its best not to wait until after a business has peaked; the selling price can suffer. However, almost any business can be sold, even if it is not doing too well, if the sale is handle correctly.

How much is my business worth?

A company's value depends on many factors-such as cash flow, asset value, financial history, condition of equipment and premises, lease attractiveness, competition, potential for improvement, location, industry type and the economy, among many others. We have knowledge of the market and can advise you on proper pricing strategy for your business.

Can a real estate agent sell my business?

Probably  Not. While many business brokers are licensed to sell real estate, most real estate agents do not know how to sell businesses. The techniques of pricing, selling and putting together the business transaction are altogether different from selling houses or commercial property. And, it's virtually impossible for a real estate agent to get the confidential exposure to qualified buyers that a business broker can.

How long will it take to sell my business?

Surveys have found that the national average to sell a business is from six to nine months. The amount of time it may take to sell your business will vary significantly depending on many factors. We have sold businesses in as little as a couple of weeks.

Why not sell the business myself?

Most owners find that the frustration, Expense and time involved do not yield cost savings. In fact, because they don't have access to a large number of qualified buyers, many owners end up selling their business for much less than they could have through a well-established business broker.

And, owners find it difficult to work direct with buyers and maintain confidentiality. Selling a business is a specialized function. You should seek professional assistance when it comes time to selling an asset as important as your business. 

Methods for Pricing A Business?

1. 1 to 3 times annual cash flow (or owners benefit) but can vary widely depending on the desirability of the business. The lower the risk, the higher the multiple will be.

2. The market value (not depreciated book value) of hard assets of the business such as, furniture, fixtures, equipment, franchise agreements, real estate, inventory etc. plus one years cash flow.

3.  3 to 18 months gross sales, depending on type of business. Price is nearly always related to the owners benefit and can vary drastically depending on the terms agreed upon and the desirability of the business.

Please contact us with any questions about your particular situation.