You've dedicated years to your business and now it's time to travel, spend time with family or get back to your hobbies. However, there is more to the process than hanging a "For Sale" sign as if selling your home. Preparation is everything. PEAK Business Advising will provide you a road map and timeline explaining everything from preparation, business valuation, lead generation, marketing to closing the deal.
PEAK Business Advising specializes in selling privately owned mid-sized companies up to $30 million dollar revenue range. Our qualified business advisors and acquisition team focus on helping our clients maximize the value of their business while negotiating the most favorable deal possible.
PEAK Business Advising uses a highly structured process for bringing you the right buyers, attracting multiple bids, and helping you understand all of your options. PEAK Business Advising has a developed customized marketing strategy and state-of-the-art resources, which allows us to close transactions fast.
Top Things to Know Before Selling Your Business
Selling a business can be an emotional process—one that may be simultaneously exciting, scary, sad, and even a bit intimidating. But the right business broker can help make the business sales process much more straightforward.
At Peak Business Advising, we have sold enough businesses to have a clear picture of what makes a business attractive to potential buyers. If you are thinking about selling your business, here is what you need to know first:
What is your business worth?
Having a realistic valuation of your business will be key to pricing it well and selling it quickly without leaving money on the table. Insist on working with a business broker who has a proven valuation process and a track record of successfully closed sales.
What does it cost to sell your business?
When you’re considering working with a business broker, knowing about up their upfront fees and commissions is important. So is having an idea of fees to expect from other participants in the process, like the legal team that will close the sale. Choose a business broker who is completely forthcoming when it comes to discussing fees.
How can you protect your confidentiality when you put the business on the market?
Keeping your personal and business identity confidential is imperative to ensuring a smooth sales transaction—but some brokers will send your sensitive financial information and other materials to anyone who requests them, without vetting them to ensure they’re a serious buyer. It’s crucial you choose a business broker who makes your confidentiality their top priority.
What is the process of selling a business?
Selling a business typically does not happen overnight; instead, it takes time. What process will the business broker be following to sell your business, and does that process have a proven track record? Work with a business broker who fully explains how their process works and is there throughout the process to answer any questions that arise.
Who will buy my business?
Depending on the type of business you have, its size and its value, anyone from an individual owner/operator to a financial buyer, a strategic buyer, or even a private equity firm may be interested. Insist on partnering with a business broker who has experience working with the types of buyers your business is most likely to attract.
LOOKING TO BUY A
PEAK Business Advising will be with you every step of the way when you are looking to buy a business. From the very first step all the way to the closing transaction, we will guide the process for you. For the first time buyer, there will be many questions that need answers, and our trained team at PEAK Business Advising will provide information in an easy to understand format.
Whether you are looking for an entrepreneurial opportunity in a new field, or you are seeking to expand your existing business through strategic acquisition, we do the leg work for you. We screen out unsuitable candidates and present you with a list of appealing alternatives to meet your goals. In addition to our extensive in-house research facilities we are also connected globally to a wide range of information sources that will help us pinpoint exactly what you are looking for.
Top Things to Know Before Buying a Business
How do you value a business?
We take many elements into account when determining the price of a business. We review historical financials, cash flow, asset and equipment values, condition of the premises and lease terms, location of the business, competitors, and the economy before deciding on the sell price. We also consider recent transactions of similar companies – both ones we have represented and transactions outside of our brokerage through paid data sources.
What portion of the sale will the seller finance?
This varies with each seller. Some are willing to finance a portion, but most sellers are reluctant to finance much of the sale price. The terms or length of the financing period also vary.
This said, most transactions below $5.0mm will generally apply for an SBA-backed loan to assist in the purchase of a business. This is a loan that is government backed and offered at competitive rates. Think of it like a mortgage when buying a house – most people make a down payment and then mortgage most of the total cost.
Can you recommend legal and financial counsel?
Absolutely! As a mergers & acquisitions firm, we are well connected with the representation you will need as a buyer. We have a wide referral system throughout the Southeast and can assist you in finding the right attorney, CPA, and any other representation you may need.
Why buy a business versus starting my own?
Many small businesses fail within the first year or two after starting up. By purchasing a business that is already up and running, you are eliminating many of the risks associated with a failing business. An established business has a proven track record, a proven/vetted business model, a customer base, trained and experienced employees, and most importantly, positive cash flow for the new owner. The risk is lower, and often the growth is accelerated with these fundamentals already in place and with a new owner coming in with fresh ideas and new energy. Plus, you’ll start off in month 1 with a positive cash flow and able to draw an income, whereas most new businesses take a while to build up enough business to generate a substantial income for the owner.
Are there tax benefits associated with buying a business?
The buyer has an opportunity to make business growth decisions with tax deductible investments in their future while they build the value of their business. Upon purchasing a business, business goodwill/personal goodwill, fixed assets, building purchases all will provide depreciation benefits while the buyer builds their new company.
Maintaining Confidentiality: We understand the importance of maintaining confidentiality throughout the sales process. We will not disclose the identity of your company or share relevant confidential information about your business without the prospective buyer first signing a Non-Disclosure Agreement and filling out our proprietary due diligence checklist.