Hiring an experienced business broker Orange County is the first step to getting your questions about selling answered. Having sold numerous businesses before, an experienced broker will be able to give you conclusive answers to each question you ask. In this post, however, we shall be taking a quick look at the most frequently asked questions by business sellers.
How do I keep employees, customers and vendors from learning about the sale?
Confidentiality is the most important thing you have to manage in a business sale. You don’t want your employees, customers or vendors to learn that you are considering selling your business. Often times, the decision to sell is taken as the demise of a business. Employees, customers and vendors will immediately start looking for refuge in other companies when word about the sale gets out. Business brokers Orange County have sold many businesses. They will be able to manage confidentiality by marketing using blind ads, qualifying buyers and requiring they sign non-disclosure agreements and above all the broker will not be associated with your business. Managing confidentiality is thus easier when working with a broker.
How long does it take to sell the business?
There are many variables at play. Some businesses will sell faster than others. On average, it takes about 9 months to close. This might seem like a long time but there is a lot that is involved. The facets of selling a business include business valuation, listing the business, finding and qualifying buyers, negotiating with the buyers, drafting the contracts, due diligence and then closing. All these facets are time consuming. How long it takes to sell will mostly be affected by the type of your business, the industry it is in, its value and the asking price. The competence of your business broker will also matter.
Will I be able to transfer the long term lease with the landlord?
Transferring the lease is vital to the success of the transaction. If you haven’t transferred the lease, consummating the deal will be hard. Your lease has a clause that defines the rights of the landlord in regards to lease transfer. Make all the necessary arrangements for the lease transfer before you list your business. Your business broker Orange County and a great transaction attorney can help.
How much will it cost to sell my business?
When working with a business broker, you don’t have to spend a dime. Business brokers are paid on commission. The commission is paid at the end of the transaction. It is, however, good to note that some brokers will ask for a down payment which is meant to show commitment and also take care of the initial costs. All in all, you will pay the agreed upon commission at closing.
These are the most popular questions. If you still have a lot more questions to ask, please contact a business brokerage firm in your area. Most brokerage firms offer free consultations.