Do you have questions? Check out these FAQs. If you do not find what you are looking for, please contact us!
What’s the benefit of having Peak Business Advising on your team?
Our wealth of experience and team of professionals ensure you are getting the most value from your purchase or sale. Did you know – According to a recent survey of small business owners by M&A Today, 65% do not know what their company is worth and 85% have no exit strategy.
What is your business worth?
Having a realistic valuation / range of value 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. Contact us to find out what your business is worth.
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 professional who is completely forthcoming when it comes to discussing fees. Actually, it should not cost you anything to sell your business. Contact us to learn more.
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 professional who makes your confidentiality their top priority.
What’s the process of selling a business?
Selling a business typically doesn’t happen overnight; instead, it takes time. Preparation is key. What process will the business broker be following to sell your business, and does that process have a proven track record? Work with a professional who fully explains how their process works and is there throughout the entire 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 professional who has experience working with the types of buyers your business is most likely to attract.
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.
Contact us to learn more.