When two parties come together to buy and sell a business, they both share responsibility in the transaction. We will focus primarily on the seller, but note some responsibilities of the buyer as well.
It is often necessary to determine the value of a business, such as when courting investors or preparing it for sale. The specific process for determining the value of a business varies and can be achieved through a range of methods that we will review here. All of these methods fall under three common approaches that we will examine in detail.
Many businesses have a life cycle, either due to economic conditions, a change in customer buying patterns, or the desire for the owner to retire or move on. But most business owners will eventually reach the point when they need to decide whether or not to sell their business. Let’s review some of the thought processes behind this decision.
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.
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.