There are many aspects of running a business where a business owner can make decisions without the assistance of an attorney. Even a business startup has steps that can be performed by the owner, including:
Now that you have signed a contract to purchase a business, you enter the due diligence phase. This is a negotiated term of typically 14 to 30 days during which the buyer arranges to perform needed inspections, review titles and deeds, negotiate repairs, and even decide if you want to continue with the purchase depending on issues found during the process.
Selling a business can be an emotional experience for an owner. They have put years of effort into growing their business, finding the right employees, and providing excellent customer service. They will have doubts about the wisdom of selling, and other concerns as well.
Selling a business can be a very complex process. Along with trying to find prospective buyers, you also need to determine a value of your business based on market facts rather than the emotions of what the business means to you. This is a good time to employ the assistance of a business broker who can separate themselves from the emotions of selling a business and help eliminate roadblocks to getting your business sold.
A ‘question’ every business owner needs to ask themselves is “When do I know it’s time to sell?”. The second question they should be asking is “What is my exit strategy when I decide it’s time?” Every successful business owner would like that success to go on forever, but reality doesn’t work that way. Family issues, a changing economy, even the demographics of the area where you have your business can affect you in ways you can’t anticipate today.
As part two to our discussion about choosing a business broker, you first should decide not to sell your business on your own. There are many legal and financial pitfalls when attempting to market a commercial business, and you should not go it on your own. Now that you have decided to use a business broker, you need to find one who will work on your behalf to get you a proper buyer and the right price. Here are some more questions to ask a prospective broker before signing a sales contract with them.
There are two mistakes you can make when it is time to sell your business; selling it on your own, and using an unqualified or inexperienced business broker. If you decide you should use a business broker, here are five questions you should ask of any prospective broker before you give them your business.
Hallmark Business Brokers Inc. are different from other brokers you may have used. Our intent is to get to know you so we can help fit you to a perfect business opportunity, or find you a great buyer if you are selling your business.