Frequently Asked Questions on Selling a Business
Venture Opportunities’ business brokers specialize in guiding clients through the processes of selling or buying a business or franchise. Below are some of the most commonly asked questions by our Dallas / Fort Worth clients about selling a business.
What is my company worth?
Determining the value of your business is one of the first steps in selling your business. There are many factors to consider such as cash flow, asset values, financial history, condition of equipment, lease terms, competition, location, and the economy. We have access to comparable businesses that have recently sold, so we can value your business and establish an appropriate price.
How do I know when it’s the right time to sell my business?
Some of the reasons businesses are sold include: retirement/semi-retirement, health issues, burn-out, personal diversification, death, divorce/partner disputes, business growing too fast, second generation not up to the task, and loss of market share. The best time to sell your business is when the business is doing well. If you wait until the business is declining, or you have an urgent need to sell, the purchase price will suffer. It is important to remember that almost any business can be sold, even if it is not currently doing well, if the sale is handled by a professional intermediary and is priced accordingly.
How long will it take to sell my business?
The average time to sell a business falls somewhere between 6-9 months.
How do you maintain confidentiality?
The sale of an established business is very confidential. If employees, customers, and/or vendors know that the business is for sale, it could hurt the business. Before potential buyers can see details about your business or have your business address, they must sign a confidentiality agreement and fill out a buyer profile sheet. This process helps ensure that the only people that will receive details about your business understand the importance of confidentiality, and are qualified to purchase your business.
How do you find buyers for my business?
We conduct buyer searches through discreet networking, referrals, target marketing, Internet, using our extensive database of over 10,000 buyer inquiries and advertising. We receive an increasing number of buyer inquiries in the Dallas/Fort Worth area each month.
Why can’t I sell my own business?
Most owners that try to sell their own business find that the time they waste following up on interested parties and qualifying potential buyers is not worth the money saved trying to sell their own business. It is nearly impossible to maintain confidentiality while selling your own business. To obtain maximum value for your company, you need to concentrate on running your business to keep it profitable. If you are spending too much time working with buyers, you will start neglecting your business; if profits decrease, so will your purchase price.
Why do I need a business broker?
There are many complex issues that occur when selling a business. It is different than most business transactions. Some issues include confidentiality, employee issues, customer relation issues, supplier relation issues, the company must maintain a competitive position during the process, unique contract issues, and complex tax issues. A business broker can maximize the value of your company while minimizing your stress through skillful valuation, marketing and negotiation. We only bring you buyers that are qualified, willing, and able to purchase your business. You concentrate on running your business to maintain your competitive position while we focus on the sale of your business.
Call Venture Opportunities today at (972) 783-1662. We can answer all of your questions about selling a business in Dallas/Fort Worth.