Frequently Asked Questions
Click on a question to be redirected the answer below.
- When should I develop an exit strategy?
Is my company ready for sale? - What is my company worth?
- How do I maintain confidentiality in the marketing process?
- Does The Vant Group have buyers for my company?
- Who will be my contact person at The Vant Group?
- What is The Vant Group's fee structure?
- Exclusive representation?
- Geographical representation of The Vant Group?
- What can a Business Broker do - and, what can't they do?
- How long does it take to sell my business?
- Why is seller financing so important to the sale of my business?
- What happens when there is a buyer for my business?
- What can I do to help sell my business?
1. When should I develop an exit
strategy?
The sooner the better. The ideal time to develop an Exit Strategy for
your business is when you start or purchase a business. However, industry
statistics indicate that 85% of all business owners do not have a defined
exit strategy although, on average 75% of their net worth is tied up in
their business. Click here to find out more
about Exit Planning.
2. Is my company ready for sale?
The company's financial records and operations must be evaluated and
analyzed to determine the strengths and weaknesses of the company. Proper
planning will help you address and hopefully minimize any operational or
financial weaknesses of the company before launching the marketing phase
of the disposition process.
3. What is my company worth?
The market price range of your company is estimated after consulting
with all of your team members (accountant, valuation expert, M&A specialist)
and evaluating all of your goals and objectives. Timing considerations,
proposed transaction structure, industry conditions and lending market
conditions are all key elements to consider in estimating the market price
range for your company. Find out about
our No Cost Opinion of Value.
4. How do I maintain confidentiality in
the marketing process?
Confidentiality in dealing with internal personnel and external sources
is strongly encouraged and is critical to achieve a successful transaction.
For the Seller's protection, The Vant Group requires a Buyer's Confidentiality
Agreement to be signed by the potential buyer before the release of the
Business Memorandum.
5. Does The Vant Group have buyers
for my company?
Very possibly. The Vant Group's extensive buyer database includes over
2000 high net worth individuals, corporations, and private equity groups.
The Vant Group will also perform a customized marketing plan to target
qualified buyers for your company.
6. Who will be my contact person
at The Vant Group?
One of The Vant Group's principals will serve as your primary contact
and will "guide" you through the entire business
transfer process. Personalized 24/7 service is the trademark of The
Vant Group.
7. What is The Vant Group's fee structure?
The fees and expenses of The Vant Group are specific to the services
required for the engagement and the size of the business. We are available,
at your convenience, to speak with you by phone or we offer a complimentary
in-person consultation to determine the level of service required to accomplish
your goals and objectives.
8. Exclusive representation?
It has been our experience, that to serve our clients effectively,
a team approach is best. We recommend that we are your exclusive Merger & Acquisition
advisor. We will work in concert with your attorney, CPA, and other key
advisors.
9. Geographical representation of The Vant
Group?
The Vant Group typically represents business owners in the South Central
United States; however, we market and sell to regional, national, and international
buyers.
10. What can a Business Brokers do - and,
what can't they do?
Business Brokers are the professionals who will facilitate the successful
sale of your business. As your Business Broker, we can help you decide
how to price your business and how to structure the sale so it makes sense
for everyone - you and the buyer. We can find the right buyer for your
business, work with you and the buyer in negotiating, and every step of
the way until the transaction is successfully closed. We will also help
the buyer with all the details of the business buying process.
A Business Intermediary is not, however, a magician who can sell an overpriced business. Most businesses are saleable if priced and structured properly. You should understand that only the marketplace can determine what a business will sell for. The amount of the down payment you are willing to accept along with the terms of the seller financing can greatly influence not only the ultimate selling price, but the success of the sale itself.
11. How long does it take to sell my business?
It generally takes, on average, between six to nine months to sell
most businesses. Keep in mind that an average is just that. Some businesses
will take longer to sell, while others will sell in a shorter period of
time. The sooner we have all the information needed to begin the marketing
process, the shorter the time period should be. It is also important that
the business be priced properly right from the start. Some sellers, operating
under the premise that they can always come down in price, overprice their
business. This theory often "backfires," because buyers often will refuse
to look at an overpriced business. Find
out more about the selling process.
12. 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 70 percent of their asking price, while sellers who accept
terms receive on average 86 percent of their asking price. That's a difference
of 16 percent! In many cases, businesses that are listed for all cash just
don't sell. With reasonable terms, however, the chances of selling increase
dramatically and the time period from listing to sale greatly decreases.
Most sellers are unaware of how much interest they can receive by financing
the sale of their business. In some cases it can greatly increase the amount
received. And again, it tells the buyer that the seller has enough confidence
that the business can, indeed, pay for itself.
13. What happens when there is a buyer
for my business?
When a buyer is sufficiently interested in your business, we will help
in the preparation of an offer or proposal. This offer or proposal may
have one or more contingencies. Usually, they concern a detailed review
of your financial records and may also include a review of your lease arrangements,
franchise agreement (if there is one) or other pertinent details of the
business. The buyer's proposal will be presented to you for your consideration.
You may accept the terms of the offer or you may make a counter-proposal.
You should understand, however, that if you do not accept the buyer's proposal,
the buyer can withdraw it at any time.
We will submit all offers to you for your consideration. At first review, you may not be pleased with a particular offer; however, it is important to look at it carefully. It may be lacking in some areas, but it might also have some pluses to seriously consider. There is an old adage that says, "The first offer is generally the best one the seller will receive." This does not mean that you should accept the first, or any offer - just that all offers should be looked at carefully.
When you and the buyer are in agreement, we will work with both of you to satisfy and remove the contingencies in the offer. It is important that you cooperate fully in this process. You don't want the buyer to think that you are hiding anything. The buyer may, at this point, bring in outside advisors to help them review the information. When all the conditions have been met, final papers will be drawn and signed. Once the closing has been completed, money will be distributed and the new owner will take possession of the business. As you Business Intermediary professional, we will work with you throughout the entire sales process.
14. What can I do to help sell my business?
You can cooperate fully with us and any other professionals that you
are using. A buyer will want up-to-date financial information. If you use
accountants, you can work with them on making current information available.
If you are using an attorney, make sure they are familiar with the business
closing process and the laws of your particular state. You might also ask
if their schedule will allow them to participate in the closing on very
short notice. If you and the buyer want to close the sale quickly, usually
within a few weeks, unless there is an alcohol or other license involved
that might delay things, you don't want to wait until the attorney can
make the time to prepare the documents or attend the closing. Time is of
the essence in any business sale transaction. The failure to close on schedule
permits the buyer to reconsider or make changes in the original proposal.
And, finally, your team of advisors must all be working towards the common goal of selling your business for the best price and terms available in the marketplace, and closing the sale as quickly as possible! Remember that, as your professional Business Intermediary we are on your side. Only by being as cooperative as possible with us can we best handle you business interests.
Find out about EXIT: A Business Owner's Guide To
Selling A Company
by Alexander Vantarakis and William Whitehurst
