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    Frequently Asked Questions - Seller FAQs

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    FAQs - Seller FAQs

    The company’s financial records and operations must be evaluated and analyzed to determine the strengths and weaknesses of the company.

    Many things regarding your business must be considered in the evaluation of your business prior to determining the market price range of your business.  Timing considerations, proposed transaction structure, industry conditions and the specifics related to your business are all key elements to consider in estimating the market price range for your company. 

    The sooner the better. The ideal time to develop an Exit Strategy for your business is when you start or purchase a business. However, industry statistics indicate that 85% of all business owners do not have a defined exit strategy although, on average 75% of their net worth is tied up in their business. 

    Very possibly. Desert Business Brokers has an extensive database which includes potential buyers for businesses of all types and sizes. Desert Business Brokers will also perform a customized marketing plan to target qualified buyers for your company.

    Business Brokers are the professionals who will facilitate the successful sale of your business. As your Business Broker, we can help you decide how to price your business and how to structure the sale so it makes sense for everyone – you and the buyer. We can find the right buyer for your business, work with you and the buyer in negotiating, and every step of the way until the transaction is successfully closed. We will also help the buyer with all the details of the business buying process.

    A Business Broker is not, however, a magician who can sell an overpriced business. Most businesses are saleable if priced and structured properly. You should understand that only the marketplace can determine what a business will sell for. The amount of the down payment you are willing to accept along with the terms of the seller financing can greatly influence not only the ultimate selling price, but the success of the sale itself.

    The latest nationwide statistics reports that it takes an average of 9-18 months to sell most businesses.  Keep in mind that an average is just that. Some businesses will take longer to sell, while others will sell in a shorter period of time. The sooner we have all the information needed to begin the marketing process, the shorter the time period should be. It is also important that the business be priced properly right from the start. Some sellers, operating under the premise that they can always come down in price, overprice their business. This theory often “backfires,” because buyers often will refuse to look at an overpriced business. Find out more about the selling process.

    You can cooperate fully with us 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 proposal.
    And, 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 professional business broker, we are on your side. Only by being as cooperative as possible with us can we best handle you business interests.

    When a buyer is sufficiently interested in your business, we will help in the preparation of an offer or proposal. This offer or proposal may have one or more contingencies. Usually, they concern a detailed review of your financial records and may also include a review of your lease arrangements, franchise agreement (if there is one) or other pertinent details of the business. The buyer’s proposal will be presented to you for your consideration. You may accept the terms of the offer or you may make a counter-proposal. You should understand, however, that if you do not accept the buyer’s proposal, the buyer can withdraw it at any time.
    We will submit all offers to you for your consideration. At first review, you may not be pleased with a particular offer; however, it is important to look at it carefully. It may be lacking in some areas, but it might also have some pluses to seriously consider. There is an old adage that says, “The first offer is generally the best one the seller will receive.” This does not mean that you should accept the first, or any offer – just that all offers should be looked at carefully.
    When you and the buyer are in agreement, we will work with both of you to satisfy and remove the contingencies in the offer. It is important that you cooperate fully in this process. You don’t want the buyer to think that you are hiding anything. The buyer may, at this point, bring in outside advisors to help them review the information. When all the conditions have been met, final papers will be drawn and signed. Once the closing has been completed, money will be distributed and the new owner will take possession of the business. As your business broker, we will work with you throughout the entire sales process.