Frequently Asked Questions

How do buyers determine the price they pay for a company?

It depends, and here's why, generally buyers determine a company's value on the basis of recent results, growth opportunities, overall company quality, and industry multiples of earnings.

How much is my business worth?

Ultimately, as with any asset, a business is worth what a buyer is willing to pay. There are no magic formulas or exact calculations. We help our clients determine the fair market value of their business based on cash flow, competitive strengths, market position, growth potential, and risks of the business.

Will a simple business appraisal sell my business at the highest price?

No. You will only know that you have received the best possible offer for your company. You need to have multiple, simultaneous offers to choose from.

Is the process confidential?

Confidentiality is actually most sellers' number one concern. It's ours too. We protect your privacy from the moment that you contact us.

How long will it take to sell my business?

Most businesses sell in 12 to 18 months. The time it takes will be determined by many factors, such as time of year, cash flow, asking price, and the size of business.

Why is seller financing so important to the sale of my business?

Surveys have shown that a seller who asks for all cash receives, on average, only 65 to70 percent of their asking price while sellers who accept terms receive, on average, 86 to 90 percent of their asking price.

What is the difference between an asset sale and a stock sale?

• Asset Sales - In concept, the easiest way to buy a business is to purchase a seller's assets, free and clear of all liabilities. The purchaser is not actually buying the business entity itself.
• Stock Purchase - In simple terms, a stock purchase may require only that the selling shareholders swap their stock certificates for a check from the buyer. In contrast to an asset purchase, the buyer is actually taking over the seller's store and not just purchasing the merchandise.