Most Commonly Asked Questions before you

Sell a Business or Get a Business Valuation 

Why should I use a broker to help sell a business?

• An owner representing himself cannot maintain anonymity which could seriously hurt the business.
• Valuation and Pricing a business is challenging.
• An owner may not be knowledgeable in the most current areas of law, accounting, taxes and marketing of businesses.
• Fielding buyer inquieries is time consuming.
• Identifying qualified buyers takes both time and expertise.
• An owner's talents are used much more effectively in running the business than in trying to sell the company.
• An owner generally does not have the experience, knowlege, and negotiating skills needed to sell the company efficiently and for the best price.

How can I ensure that my business is prepared so that it best demonstrates its market value, and I receive the best market price?

There are 4 key components to consider: Awareness of Marketability, Financial Performance Indicators, Infrastructure and Human Resources, Personal Objectives and Goals.  For further information, please contact us and we will respond to your inquiries as soon as possible.

What are the steps once I decide to actively pursue the sale of a business?

It is a 6 step process each of which can have several stages. 

1. Introduction to the Business and its owners
2. Preparation to enter market through analysis of both the Business and its industry
3. Active marketing of the opportunity to potential buyers
4. Letter of Intent
5. Due Diligence
6. Closing

As your advisor, CH&CO will maintain a high level of confidentiality throughout the process and will protect you and your company's best interests.

Why get a Business Valuation?

A business valuation is not only for a business owner preparing for a sale but also it is valuable for a variet of business and legal situations.  First, a business valuation is needed when a seller is considering a merger, sale, or acquisition.  Secondly, government or judicial authorities often require a business valuation for legal matters such as shareholder disputes, divorce proceedings, breach of contracts, ect.  Thirdly, taxable events such as charitable giving can also require a valuation.  Lastly, a business valuation can help identify what is needed to increase the value of the business.

How long wil it take to sell a business?

Assume it will take longer than you anticipate.  While it does vary from business to business, the typical selling time can range anywhere from 2 to 12 month time frame.

Who is interested in buying a business?

There are several categories of prospective buyers:

• Other companies in the same industry for whom the acquisition would be beneficial.
• Suppliers and customers of the business.
• Individual Investors.

Merger and Acquisition Advisors to Lower Middle Market Businesses