Frequently Asked Questions
A broker said they have a buyer for my business, should I believe them?
Start by asking a few simple questions:
- Is the “buyer” paying for your services?
- You won’t expect me to compensate you, correct?
- What made the buyer interested in my particular business?
- What do you know about this buyer that would make them a good successor?
What should I expect from a Valuation? Do I need to get one?
Professional service providers often advise owners who are considering a sale to get a valuation. Is that good advice?
- A valuation firm is paid a fee for a service. Could this create a motivation to tell the client what they want to hear?
- A business broker makes a living selling a small percentage of the businesses they list. Could this create a motivation to increase the valuation to get a lot of listings?
Is it worth fixing my business or should I just sell?
Every business story is more than a little different. Each company has arrived where it is today along a unique path, lead by a unique leader or leaders and is comprised of a unique combination of culture, resources, and people. Moreover, even in the same industry similar businesses can approach their market in completely different ways. The compounding effect of these differences are companies that are below-average, average and above average performers. Knowing the difference will determine whether your business sells and for how much.
- increase the probability of sale;
- may increase the total transaction value and improve the terms of sale;
- may lead to a change of heart and a renewed interest in keeping the business.