Selling a Business - FAQs

Business Owners who have sold a business in the past will likely tell you it is long, stressful process. Selling your own business can actually hurt the value of your business as it takes your focus away from the day to day operating of your business at a critical time when you should be increasing or at least maintaining your current business. When a Business Broker assists you in the process it can pay off in more ways than just the price obtained. Business Brokers will help properly value your business, reach out to buyers they already have, reach a larger number of new buyers, allow you to continue running your business rather than taking the your focus away, maintain confidentiality and most importantly assist with the closing of your transaction based upon experience and training. The most common mistake potential Sellers make is comparing the selling of their business to selling a house. Unlike realtors, we keep your listing entirely confidential, and work with you each step of the way until we sell your business.

With unsurpassed experience since 1994, offices across the U.S. and some of the most highly trained Business Brokers in the industry First Choice is the "Clear Choice" when it comes to choosing a Business Brokerage to represent you. Our Business Brokers are experts in the field of business evaluation, business sales, business marketing and buy/sell negotiations to satisfy both buyers and sellers alike.

Unlike the sale of a home or even commercial building businesses do not have a "for sale" sign. Business Sales must be kept confidential; all buyers are required to sign a NDA (Buyer Confidentiality Agreement) prior to detailed information about your business being provided. This helps to prevent employees, suppliers, customers and competitors from finding out that you are selling your business.

With First Choice Business Brokers your business will be on the highest rated Websites specifically for your area as well as national and international sites. Other advertising mediums may be employed based on your type of business.

FCBB's proven methods of valuing and marketing will put your business in the best possible position to sell. First Choice Business Sales Professionals are some of the most highly trained professionals in the industry.

On average, it can take 6-9 months to sell a well-priced business, but it can take up to a year or more in many cases. The time frame can vary greatly based on the income of your business (and how easy it is to prove), type of business, the terms offered and the area in which your business is located.

After a Buyer has signed an NDA (Buyer Confidentiality), reviewed initial information and expressed a further interest in your business your FCBB Business Sales Professional will schedule a meeting for the Buyer to view your business at a time that is appropriate for your type of business.

Most Buyers looking at your business will be represented by a Professional Business Broker who will assist them in writing an offer that expresses their price, terms, contingencies (if any) and request for further documentation (if any). The offer will then be presented to you for your approval by your FCBB Business Broker and/or the Buyer's Agent.

Your First Choice Business Sales Professional is trained to deal with incoming inquires (often tire kickers) and help determine which of those Buyers might be ready to move to the next level.

Your First Choice Business Sales Professional is trained to deal with negotiations on the sale of your business. Your FCBB Business Broker will help navigate you through the entire process; we'll be with you every step of the way.

This is a negotiable point but we have found that most Buyers will ask for 30 days. Some types of businesses only require a week or two of training while other more complicated businesses may require a longer familiarization period. If a longer period is required we often find that Sellers will negotiate a consulting fee for extended training periods.

All Buyers will ask that you sign a covenant not to compete within a certain area and/or time period.

There is no requirement that you "carry paper" on your business however in today's market it is very common that Buyers will ask for some type of Seller Carry Note which in reality opens your business to a larger pool of Buyers.

While you may have a close relationship with your employees it has been proven time and time again that the best time to tell your employees is when you introduce them to the new owners. This may be diffcult for you emotionally however experience dictates that silence is the best practice. The exception to this rule would be if a "key" employee is part of the negotiation for the Buyer to keep them on after the sale is complete. In this case there may be some advance notice required to this person and this person alone. Your First Choice Business Broker will guide you through the proper timing for this very important part of the business sal- timing is everything!

First Choice does not check the credit of Buyers however through the offer and acceptance process you may request that the Buyer provide you with a copy of their credit report. This is not often asked of the Buyer as the property owner and/or landlord will likely be obtaining a credit report for their review.

If your business listing is performing below average for several consecutive months (i.e. 3-4 mo.), that is typically a sign that the price may need to be reduced. This would be a good time to discuss your business pricing strategy and any market feedback with your broker.

Business sales are not as sensitive to price reductions as home sales. Many listed businesses undergo 1-2 price reductions before they sell, due to the wide range of reasonable values that exist for any business. If you’re listing is not getting enough buyer activity, we recommend making a material price reduction 1-2 times throughout a sale process, versus making many small reductions. You will not look desperate, but you will look serious when you reduce your price to market levels.