The process of selling a business can seem complicated. Please find below a summary of frequently asked questions in relation to the selling of a business.

 

How to Sell a Business?

 

How long does it take to sell a business?

The time scale to sell a business can vary, some businesses can be sold in as little as 3 months, however the usual time frame to sell a business is 6 to 12 months.

 

When is the right time to sell my business?

The right time to sell a business, is when the owner decides they want to sell. Seasonality is not a key factor with regards too selling a business.

 

How do I go about selling my business?

You have a choice whether you want to sell your business yourself or use a professional. Selling a business does take a lot of time and includes a multitude of steps that impacts the potential sale of the business. That is why a lot of business owners choose to hire a professional to sell their company.

 

How can I stop my employees or customers finding out about my business sale?

The business can be marketed confidentially, which means that no points that relate to the identify the business, such as business name, directors name etc would be included in the initial marketing material. Before any confidential information is provided the prospective purchaser will sign a non-disclosure agreement.

 

How is a business valued?

There a wide variety of methods to value a business including EBITDA multiple, Asset Method and Discounted Cash flow analysis to name a few. The valuation technique depends on the type of business. Bernard Baxter provides a free no obligation business valuation.

 

What is Buyer Due Diligence?

This is the process where a buyer attempts to identify all issues in relation to the business. This would include Legal, Financial, Tax and commercial due diligence. The process is usually kicked off with a buyer due diligence questionnaire sent to the business owner and their representatives.

 

What is the difference between a Business Broker, Business Transfer Agent, Business Sales and Mergers & Acquisitions consultant? 

There is no real difference, they are all intermediaries with the aim of helping you to sell or acquire a business.

  

What is the goodwill of a business? 

The Goodwill of a business is effectively the difference between the total business value and the hard assets of the business such as inventory, equipment etc. The cash flow is the mine driver of the goodwill value of the business.