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How do your charge for business brokerage services?
When selling a business, in most instances we charge only a performance based commission. That is, we get paid upon closing of a sale. Usually our fees are paid by the seller, but in some cases the buyer pays the commission. When we are assisting a buyer acquire a business there is more variation in our fee structure. Please call us to discuss your situation.
How much is my company worth?
Business valuation is a mix of art and science. Please see our section on business valuation for a detailed description of the process. If you want us to perform a detailed valuation of your company, Click here for more information.
Is selling a business like selling real estate?
Not really. Although business owners sometimes liken selling their business to selling real estate, there are many differences. Usually, in a real estate sale, when a broker brings a buyer who will pay the asking price, the seller is obliged to sell. Usually, the sale of a business is very different: the seller can accept of reject any offers brought to her/him. The sale of a business needs to be carefully structured to consider the tax consequences for both buyer and seller. Furthermore, there are a number of intricacies involved in defining what is actually being transacted:
- Is it a stock or asset sale?
- How will the purchase price be paid?
- Which liabilities are included in the sale?
- How will the proceeds be allocated for tax purposes?
How can you sell my company and still maintain my confidentiality?
Sellers are justifiably very concerned with maintaining confidentiality. No good can come from customers or employees finding out about a pending sale before the owner wants them to find out.
We do not reveal the name or identifying characteristics of companies we represent for sale until an agreement of confidentiality (sometimes called a Non-Disclosure Agreement or NDA) is signed. Even with a signed confidentiality agreement we stage the release of information based on the level of seriousness and commitment demonstrated by the prospective buyer.
How long does it take you to sell a business?
This is a very tough one to answer. We have sold companies in as little as a few weeks. In other cases, it can take as long as six months. It depends on the business climate, the industry, the seller's own time frame,. and other factors that are not always predictable.
Should I consider an Employee Stock Ownership Plan (ESOP)?
ESOPs are a useful vehicle for certain businesses. Essentially ESOPs involve selling a company to its employees. There are some tax advantages, although recent changes in capital gain tax rates have mitigated those advantages. There are also some advantages to the company itself as employee-owners are the most committed employees. The owner can remain in control of the company even after the sale to the employees.
ESOPs generally make sense only for companies with payrolls greater than $1,000,000 and with valuations well in excess of $2,000,000.
Our company is in a different part of the country from your offices. Can you represent us?
We have representatives in Massachusetts, Michigan, New Mexico, and Rhode Island. However, we represent businesses for sale in most areas of the USA. In the past year, we have sold businesses, in California, Nevada, and New York as well as in the areas where we have our offices. We do our part to keep the airlines in business, by flying regularly to visit clients.
Can you sell companies that are not located in the United States?
Most of the businesses we sell are US based (though we often sell to foreign buyers). However, we do represent foreign companies for sale to US buyers on a case-by-case basis. If you have a non-US based company that might be of interest to a US buyer, contact us—we'll be happy to discuss the possibilities with you.
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