FAQs
How do you find the right buyers?
Prospective buyers contact us all the time. They know that we sell good businesses. In fact, their banker, lawyer or accountant often refers them to us. We maintain a database of interested parties, and we will talk to you about potential strategic buyers in your business area.
What are your fees?
Our fees are success based. We only get paid when a business sale closes. We typically charge a nominal work fee up front and then a percentage of the sales price.
What is due diligence?
Due diligence is the investigation conducted by the purchaser or its agents to confirm the value and viability of your business. It typically involves a review of financial statements, including a detailed review of the major balance sheet and income statement accounts, a legal review, inspection of assets, and discussions with the owner/seller and certain key employees. Much of the due diligence can be performed via an online due diligence “room”; this is organized by the Summit Group.
How long will it take to sell my business?
This is a difficult question to answer other than to say that “it depends.” You should note, however, that it will probably take longer than you expect. A fairly priced business will sell faster than one that is overpriced. A business that is properly staged with up to date, accurate accounting information will move through the sales process more quickly than a business that is not. In general, you should expect that it will take between 6 to 12 months from listing to closing.
Why should I use a business broker?
Selling a business is something that most owners only do once. The sale of a business is a complex process that requires knowledge and expertise in a many areas, including valuation, marketing, accounting, negotiations, statutory regulations, and contract and tax law.
The Summit Group are experts at selling businesses. We will guide you through the many steps involved in the sales process. We will help you choose tax and legal advisers that are practical and skilled; we will assist you in negotiating and finalizing the terms of the transaction; we will explain your options; and we will ensure that your business sells for the best price and in a timely manner.
What is vendor financing?
Vendor or seller financing is fairly commonplace in today’s lending environment. Lending institutions have become much more conservative. Therefore, in order to get a sales price that is compatible with the value of your business, it can be necessary to carry some of the financing for the purchaser. Vendor financing is secured by the assets of the business and typically earn an interest rate that is higher than bank debt. Sellers prepared to finance at least a part of a business sale will find it much easier to close the sale.
How do you keep the sale of my business confidential?
Confidentiality is the hallmark of our business. We understand the importance of keeping your business sale confidential, and we will sell your business without competitors, customers or employees knowing about the sale. All prospective buyers interested in looking at your business are required to sign a comprehensive and enforceable non-disclosure agreement. Much of the due diligence can be performed offsite or after hours.
Should I get tax advice?
The amount of after tax money that you are able to retain is critical to the success of the sale. The closer you get to the sale, the less options you have in terms of tax structure. This is why we strongly recommend that you get tax advice before you embark on the sale of your business. Call the Summit Group and we will help you find the right tax adviser.
Have a question? Contact us today.
