Q. Should I be concerned about confidentiality?
A. In most cases, maintaining confidentiality is important during the transfer of a small business, and is one of the many reasons to work with an experienced and professional Business Broker. All information received will be held in the strictest confidence and is shared with interested parties only after a confidentiality agreement has been signed, and a strict set of qualification criteria has been met. We usually recommend that sellers do not disclose the pending transaction to vendors, employees or customers until the appropriate time. The appropriate time can vary from case to case, but it is important that the release of information be planned for and controlled.
Q. How much is my business worth?
A. Valuing a Business can be complex and is dependent upon many factors. We can assist you by offering our Pricing Evaluation Report, or we can arrange for a Certified Business Appraisal depending on your individual needs.
Q. How long will it take to sell my business?
A. There is a great deal of variation in the time frame, but the average time to sell a small business is approximately 4-12 months.
Q. I have a long-term lease with my landlord. Should I be concerned about its transfer?
A. Working with the landlord to enable a smooth transition is an important part of the process leading to a successful transaction.
Q. What generally happens to the cash, accounts receivable and inventory when I sell?
A. A working level of inventory generally conveys. Smaller businesses are usually sold with the seller retaining cash and accounts receivables. Larger businesses are sometimes sold with A/R, A/P and working capital included.
Q. What records do you need to prepare my business for sale?
A. It is hard to overemphasize the importance good books and records can make in achieving a successful business transfer. This includes financial statements, receipts and whatever is appropriate for your business. Of course, tax returns are a must. However, we are accustomed to working with businesses with less than ideal records.
Q. How far in advance should I start to prepare for the sale?
A. The sooner, the better. Even if you are not sure if this is the right time to sell your business, we can analyze the present value and marketability of your company, and determine the most productive and cost-effective changes you can make to prepare your business for a future sale if needed. We provide you with the tools to make an informed decision. Whether your plans involve selling your business now or in the future, we can help.
Q. Do I need an attorney or an accountant to sell my business?
A. While some businesses are sold without the help of attorneys and accountants, we always recommend that both seller and buyer engage professionals at the appropriate time. Although we are happy to work with your own trusted advisors, VMW Business Brokers has assembled a group of professionals who can work together to positively impact your business and its ultimate sale. From attorneys, accountants, and bankers, to financial and retirement planning experts, we offer a single source through which all aspects of your business sale can be managed, if you so choose.
Call or email us today. We are happy to answer any questions you may have about the process and how it applies to your unique set of circumstances.