COMMON ASKED QUESTIONS BUYING

The main advantage of buying an existing business, versus starting one from scratch, is that there is existing cash flow (presumably, positive cash flow). Beyond that, there are existing  processes, people and resources in place from day one. While these  aspects may be improved by an in-coming buyer, the fact that they exist  in some fashion accelerates the possible ROI opportunities.  Additionally, existing businesses are typically easier to finance.

Buying or selling a business can be a  complicated venture. While some businesses are sold without the help of  accountants and attorneys we strongly recommend that both the buyer and  seller engage professionals.

Depending on the complexities of the  business the former owner will offer varying levels of training. On most  small businesses the owner will offer training for two to four weeks at  no cost to the new owner

As part of the acquisition process you  will have to go through due diligence. During this period the seller is  required to present documents to verify his profit numbers. 

Ultimately, any business is worth what  somebody else would be willing to pay for it.  While seemingly an  obvious and simplistic statement, many business owners (especially Main  Street) are challenged to objectively view their business in this  manner.  How that market value is established and the right asking price  is determined can be subjects of complex formulas, depending upon the  size and nature of the business.  The two main factors that determine  worth:  cash flow and risk. Contact Us for a Free Business Evaluation 

There is a great deal of variation in the  time frame but if we had to pick an average time, eight to nine months  may be close. While this may sound like a long time all of the facets of  selling a business, including, listing the business, finding buyers,  interviewing buyers, writing contracts, due diligence and finally the  closing process are all time consuming. 

The quick answer to this is, better  results. Business brokers and intermediaries specialize in preparing,  pricing and marketing businesses for sale, and are often tapped into a  pool of buyers. You can focus on running and improving your business,  while your business broker is finding and vetting the buyers, and  guiding the process to a successful closing. Given this expertise and  focus, you are far more likely to sell at an optimal asking price and  optimize your net proceeds, in a shorter period of time.