How long does it usually take to sell a small business?
Generally, it takes about six months from the time you list the business with Crown Business Brokers, LLC to the actual closing, or consummation of the transaction.
How much should I list my business for?
Your business should be listed for a realistic price that is close to what it will actually sell for, but at the same time leaves some room for negotiating. When determining the price, Crown Business Brokers, LLC uses a combination of an analysis of the profitability of your business, the total financial benefit accruing to the owners, and industry formulas and norms.
What is the actual business sales process?
The actual process is quite involved. It involves listing the business, locating a buyer, negotiating the terms of sale, executing a contract, undertaking due diligence, searching for liens and judgments, and consummating the transaction. Some of these tasks are the responsibilities of the seller and buyer’s attorneys and CPAs.
As the business owner, what are some of my responsibilities?
You have an obligation to tell the entire truth concerning the actual financial and market status of the business. After a buyer is found, you will probably have a duty to maintain and operate the business as you normally would between the time a contract is signed and the closing. We recommend that you have an attorney advise you of your specific responsibilities and obligations.
Once my business is sold, what will my time commitment be?
Usually, the prior owner is required to stay on as an employee for a reasonable period of time to train the new owner, and to introduce him or her to the customers, employees and suppliers. You would be compensated as an employee. Depending upon the particular circumstances, your time commitment could range from as little as a few weeks to several years.
Once my business is listed for sale, how do you qualify potential buyers?
Generally, prospective buyers are questioned in-depth with respect to what their financial resources are, as well as their business experience. In some cases, we ask for proof of liquid funds prior to introducing the prospective buyer to the seller to ensure that the buyer has the financial wherewithal to consummate the transaction.
What is Crown Business Broker’s typical commission structure?
Our commission structure ranges from six to 10 percent, depending upon the nature of the assignment.
Will I, as the seller, have to finance a portion of the transaction?
In today’s financial climate, the answer to this question is sometimes yes. A typical arrangement is one in which the buyer puts down 50% of the purchase price, with the seller financing the balance over five to 10 years at a reasonable rate of interest. We also have contacts in the SBA (Small Business Administration) as well as non SBA financial sources to assist the buyer in financing the transaction.