Frequently Asked Questions (FAQ)
See the list below for our most frequently asked questions about selling a business.
We do not work with our clients on an “open listing” arrangement. This is a matter of maintaining confidentiality. If you have more than one business brokerage firm working to sell a business, or you are trying to sell it yourself, the risk of a confidentiality breach is significant.
We only accept listings that we have confidence that we can sell. When evaluating your business, we will be honest and upfront with you regarding its salability. Many brokers will accept overpriced or unlikely to sell businesses to use these listings to attract buyers for their other businesses. They accept overpriced listings under the guise that the “market” will adjust the seller’s price. This approach usually results in an incredibly stressful and exceedingly long selling process and for many reasons, is usually unsuccessful for all parties.
When we engage with a seller, we make a very strong commitment to sell the business and believe that our experience will result in a successful transaction.
Depending on the size and type of business there are generally three types of buyers for a business.
- Financial Buyers: these are generally buyers who are seeking a business to operate as their primary source of income and are in effect, buying a job.
- Strategic Buyers: these are buyers who are looking to add your business to their own business. Their motivation may be the assets of your business which in addition to fixed assets would also include the customer relationships that you have built over time. This enables them to quickly scale without having to organically grow their business. These can also include buyers who have a portfolio of businesses where they may take advantage of consolidating back office functions to improve the profitability of the business being acquired.
- Synergistic Buyers: buyers in this category are seeking businesses which may compliment their existing business(es) as a logical extension to their product or service offerings.