Q1.
Why Do You Need To Use A Certified Business Broker / Intermediary ?
Answer: Dailey Resources, Inc., is a professional Business Broker and M&A Intermediary firm who has served its clients for over 22 years and is recognized throughout the United States. “Our Business is Selling Businesses”. To accomplish a successful sale transaction takes proven experience and a work focus that both prepares and presents the virtues of an on-going business that is worthy of a Buyer’s investment. Very few, (if any) business owners and their businesses reach the qualifications of “Ready to Sell” without professional assistance from a Certified Business Broker or M&A Intermediary. Dailey Resources, Inc., professionals hold the highest and most honored certifications in our profession. These certifications are earned and bestowed upon them from professional organizations such as the International Business Brokers Association, (IBBA) the M&A Source (MASource) the Texas Association of Business Brokers (TABB) Institute of Business Appraisers and others that support our profession with on-going education. As a Seller, you need to know and work with someone whose sole profession is selling businesses and does so with the highest of ethical conduct and bonafide experiences. As a Seller, you know your business better than anyone, but do you know how to get it ready and in its best shape to sell? Most probably not and the worst mistake (if not multiple mistakes) a business owner can make is to try to get both themselves and their business ready to sell and then try to sell it themselves. Buyers need to know that you, the Seller, has taken the time to work with a Broker or Intermediary to understand and gather all the documentation that is required to make a decision as to whether to purchase or not. Dailey Resources, Inc., offers a total package of Client Services to both Seller and Buyer that insure that the highest ethics and professional transactional processes are utilized to arrive at a successful business transition.
Q2.
What can a Business Broker / Intermediary do – and, what can’t they do?
Answer: Professional Business Broker / Intermediaries are the professionals who will facilitate the successful sale of your business. It is important that you understand just what they can do — as well as what they can’t. They can help you decide how to price your business and how to structure the sale so it makes sense for everyone — you and the buyer. More often than not, they can help find the right buyer for your business, work with you and the buyer in negotiating and every other step of the way until the transaction is successfully closed. They can also help the buyer in all the details of the business buying process. A Business Broker / Intermediary is not, however, a magician who can sell an overpriced business. Most businesses are saleable if priced and structured properly. You should understand that only the marketplace can determine what a business will sell for. The amount of the down payment offered toward the Purchase Price that you are willing to accept, along with the terms of some seller financing, can greatly influence not only the ultimate selling price, but also can influence the success of the sale itself.
Q3.
What happens when there is a buyer for my business?
Answer: When a buyer is sufficiently interested in your business, he or she will, or should, submit an offer in writing. This offer or proposal may have one or more contingencies. Usually, these contingencies include a detailed review of your financial records and may also include a review of your lease arrangements, franchise agreement (if there is one), or other pertinent details of the business. You may accept the terms of the offer or you may make a counter-proposal. You should understand, however, that if you do not accept the buyer’s proposal, the buyer can withdraw it at any time. At first review, you may not be pleased with a particular offer; however, it is important to look at it carefully. It may be lacking in some areas, but it might also have some pluses to seriously consider. There is an old adage that says, “The first Buyer to make an offer is generally the best Buyer to work with.” This does not mean that you should accept the first, or any offer — just that all offers should be looked at carefully. When you and the buyer are in agreement, both of you should work to satisfy and remove the contingencies in the offer. It is important that you cooperate fully in this process. You don’t want the buyer to think that you are hiding anything. The buyer may, at this point, bring in outside advisors to help them review the information. When all the conditions have been met, final papers will be drawn and signed. Once the closing has been completed, money will be distributed and the new owner will take possession of the business.
Q4.
How long does it take to sell my business?
Answer: It generally takes, on average, between eight to twelve months to sell most businesses. Keep in mind that an average is just that. Some businesses will take longer to sell, while others will sell in a shorter period of time if the business is priced correctly, financials are up to date and no “severe” business problems. The sooner you have all the information needed to begin the marketing process, the shorter the time period should be. It is also important that the business be priced properly right from the start. Some sellers, operating under the premise that they can always come down in price, overprice their business. This theory often “backfires,” because buyers often will refuse to look at an overpriced business. It has been shown that the amount of the down payment may be the key ingredient to a quick sale. The down payment, generally 20 to 40 percent of the asking price, results in a shorter time to a successful sale. A reasonable down payment also tells a potential buyer that the seller has confidence in the business’s ability to make the payments.
Q5.
What can I do to help sell my business?
Answer: A buyer will want up-to-date financial information. If you use accountants, you can work with them on making current information available. If you are using an attorney, make sure they are familiar with the business closing process and the laws of your particular state. You might also ask if their schedule will allow them to participate in the closing on very short notice. If you and the buyer want to close the sale quickly, usually within a few weeks, unless there is a license or other things involved that might delay things, you don’t want to wait until the attorney can make the time to prepare the documents or attend the closing. Time is of the essence in any business sale transaction. The failure to close on schedule often results in additional Due Diligence to arrive at another Closing date.
