Business For Sale- FAQ'S

1. When is a good time to sell?

It all depends on why you want to sell your business. Do you want to retire? Do you need the money for your child’s education or marriage? Did you start the business looking at it as a potential investment? Defining why you want to sell will help you get a better deal. If your personal reasons coincide with a booming economy then you can expect to get the maximum offer.

2. Who should I sell my business to?

The most obvious answer would be to the person who wants to buy your business. While this is true in most cases, you may get a better deal if you approach your prospective buyer and make an offer. Also, keep in mind that you can sell your business to a larger corporation for many times more than it would be worth to an individual buyer.

3. What is the Owner Benefit method?

The Owner Benefit method is widely used, where the value of the company is arrived at using a formula that takes into account the sum of the company’s profits and the owner’s salary and perks.

4. Should I provide seller financing?

Providing seller financing could help you finalize a better deal. But there are risks involved too and you will have to be careful about how you term the agreement.

5. How long will it take to sell?

Be prepared for it to take at least a year to sell if you are going to consider all possible options. Or longer if you are going to put in place safeguards that will guarantee you a better selling price. Deals can also be closed within six months, if all goes according to plan.