Selling a business can be very overwhelming. There are a lot of tasks involved, from getting a business valuation to negotiating contracts to transitioning out of leadership.
Throughout this process, you will likely have a lot of questions. Getting the answers to these questions will ensure that you get the value and terms you want from the sale.
In this article, you’ll find five important questions you should ask when selling a business.
1. How long does it take to sell a business?
Every sale differs, but in our experience, most businesses sell in six to nine months, starting from the day you list your business for sale. Some deals take longer, so plan for it to take at least a year to be safe.
The exact timeline depends on several factors, including your business’s value, location, industry and the economic climate.
2. How much is my business worth?
This is one of the first questions to ask when selling a business. Knowing the value of your company will give you leverage in negotiations and help you to get the most money from the sale
We recommend hiring a certified appraiser to perform a valuation on your business. They’ll analyze every aspect of your company to determine its worth.
3. Do I need a broker to sell my business?
Not every seller needs a broker, but hiring one can make the process a lot easier. A broker can help you find the best buyer for your business. They will also manage your sale, relieving you of the stress of selling your business. However, a good broker includes you in every step of the process, consulting you on every decision along the way.
The sales process involves a lot of documentation. For starters, potential buyers will want to see income statements, balance sheets, tax returns and other documents that illustrate your business’s finances. During the close of the sale, you’ll need a purchase agreement, lease assignments, succession agreements and a range of other contracts.
One benefit to hiring a business broker is that we’ll prepare and manage all of your paperwork, ensuring that you have all documentation ready at each stage of the sale.
5. What happens after my business is sold?
The post-sale stage looks different for everybody, depending on your exit strategy. Some sellers stay on as an employee or a board member. Others are hired as an independent business consultant to help the new owner transition into ownership. The transition period may take anywhere from a month to a year, or even longer if you stay on as an employee in the business.
Lion Business Brokers can help you sell your business
We have extensive experience in representing sellers and know all the questions to ask when selling your business. From performing business valuations to qualifying buyers to closing deals, Lion Business Brokers can help you through every step of the process. Set up a free business valuation today and let’s get the process started.
5 questions to ask when selling a business
Selling a business can be very overwhelming. There are a lot of tasks involved, from getting a business valuation to negotiating contracts to transitioning out of leadership.
Throughout this process, you will likely have a lot of questions. Getting the answers to these questions will ensure that you get the value and terms you want from the sale.
In this article, you’ll find five important questions you should ask when selling a business.
1. How long does it take to sell a business?
Every sale differs, but in our experience, most businesses sell in six to nine months, starting from the day you list your business for sale. Some deals take longer, so plan for it to take at least a year to be safe.
The exact timeline depends on several factors, including your business’s value, location, industry and the economic climate.
2. How much is my business worth?
This is one of the first questions to ask when selling a business. Knowing the value of your company will give you leverage in negotiations and help you to get the most money from the sale
We recommend hiring a certified appraiser to perform a valuation on your business. They’ll analyze every aspect of your company to determine its worth.
3. Do I need a broker to sell my business?
Not every seller needs a broker, but hiring one can make the process a lot easier. A broker can help you find the best buyer for your business. They will also manage your sale, relieving you of the stress of selling your business. However, a good broker includes you in every step of the process, consulting you on every decision along the way.
You can learn all about our seller representation services here.
4. What documents do I need to sell my business?
The sales process involves a lot of documentation. For starters, potential buyers will want to see income statements, balance sheets, tax returns and other documents that illustrate your business’s finances. During the close of the sale, you’ll need a purchase agreement, lease assignments, succession agreements and a range of other contracts.
One benefit to hiring a business broker is that we’ll prepare and manage all of your paperwork, ensuring that you have all documentation ready at each stage of the sale.
5. What happens after my business is sold?
The post-sale stage looks different for everybody, depending on your exit strategy. Some sellers stay on as an employee or a board member. Others are hired as an independent business consultant to help the new owner transition into ownership. The transition period may take anywhere from a month to a year, or even longer if you stay on as an employee in the business.
Lion Business Brokers can help you sell your business
We have extensive experience in representing sellers and know all the questions to ask when selling your business. From performing business valuations to qualifying buyers to closing deals, Lion Business Brokers can help you through every step of the process. Set up a free business valuation today and let’s get the process started.
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