Frequently Asked Questions About Selling Your Business
Selling a business can be a daunting task, and you may have a lot of questions about the process. Phil Wolstein is here to help. As an experienced business broker in Los Angeles, CA, I have helped many business owners successfully sell their businesses, and I am here to answer any questions you may have. In this FAQ section, I will address some of the most common questions I receive from sellers. Whether you are just starting to consider selling your business or are already in the process, I hope these answers will provide you with valuable insights and help you make informed decisions throughout the sale process.
Seller Frequently Asked Questions
1. What is the first step in selling my business?
The first step in selling your business is to prepare it for sale. This involves maximizing its efficiency, earning potential, structure, and presentation. You can consult with a Certified Business Broker to help you with the process.
2. How long does it take to sell a business?
The time it takes to sell a business depends on various factors, including the industry, the size of the business, and the market conditions. On average, it can take anywhere from 6 months to 1 year to sell a business.
3. How do I find potential buyers for my business?
A Certified Business Broker can help you identify potential buyers who are interested in your type of business. They have access to a network of buyers and can use a combination of online listings and targeted advertising to market your business.
4. How do I determine the value of my business?
The value of your business can be determined by calculating its earnings, assets, and liabilities. A Certified Business Broker can help you recast your profit and loss (P&L) to determine your true SDE (Seller’s discretionary earnings), which is a key factor in determining the value of your business.
5. What is the role of a business broker in selling my business?
A Business Broker can help you with every step of the selling process, from preparing your business for sale to negotiating the purchase agreement. They have the expertise and experience to ensure that you get the best value for your business and that the sale is structured in a tax-efficient manner.
6. "Can I sell my business on my own?" These 3 questions can help you answer yes or no more confidently:
Do I have the skills and experience to sell my company on my own?
For most owners, selling a business is a once-in-a-lifetime experience, and likely the largest transaction of our lives.
Selling is a complex process with countless details and deadlines, and the buyer might be someone who buys businesses for a living, giving them a big upper hand unless you're also experienced.
Do I have the contacts to find the right buyer?
Professional brokers have hundreds of qualified and motivated buyers in their database and a network of professionals (attorneys, lenders, estimators, etc) who know how to get deals done.
Do I have the time to sell my business and run it, too?
Selling your company will take months between screening prospective buyers, responding to information during the diligence process, and finalizing negotiations. Most owners simply can’t manage the process themselves without taking focus away from their business.
And if your business starts to lag or become less profitable, it will be worth less to a buyer, defeating the purpose of going it on your own.
If you have more questions about selling your business, don't hesitate to contact me. I have the expertise to guide you through every step of the process and ensure a smooth and profitable sale. Let's work together to make your business sale a success.
