What Else Do You Need to Know?
1) What does a business broker do?
Business brokers, intermediaries and/or mergers & acquisition specialists assist buyers and sellers of privately held businesses in the buying and selling process. Their deal expertise, established relationships and industry knowledge benefit a Seller as the selling process advances faster, often resulting in an increased selling price. These professionals often specialize in businesses within a specific niche, such as, healthcare, technology, main street businesses, etc.
While MT Consulting is experienced as both a buy and sell-side broker, we work most often with Sellers whose businesses generate annual revenue of $3-$50 Million. We provide key services (valuation, buyer search, marketing, negotiation, process management, etc.) that accelerates the sales process, minimizes a Seller’s daily involvement, distractions and maximizes their payday. Our goal is to achieve a deal that meets the seller’s financial goals and timeframe.
2) How does our sales process work?
We work with Sellers from their decision to sell to deal closing – providing guidance and support throughout the entire sales process. Engaging our services involves signing a Confidentiality Agreement and Broker Agreement – neither of which require a fee. An initial assessment of your business begins with an in-depth financial review. View other key steps in the process.
3) How much do your services cost?
A business owner who engages MT Consulting to sell their business does not pay any upfront fees. Our compensation is based on a percentage of the final selling price of the business.
4) How should I prepare for a sale?
Since buyers are attracted to businesses with clean financials and generally accepted policies & procedures, it’s important to focus on these areas years ahead of your planned exit.
As a Seller, we recommend that you assemble a sales team that includes a business broker, accountant and lawyer. Their expertise will be invaluable in reviewing & valuing your company, addressing & resolving financial, operational, legal issues prior to presenting your company to the marketplace. Their combined efforts will aid in effectively positioning your business and/or finalizing the sale in a timely manner.
5) Can my accountant or lawyer help me find a buyer for my business?
These advisers are valuable members of the Seller’s exit team in terms of their financial and/or legal input. However, it is a business broker that provides the expertise in identifying qualified buyers, positioning & marketing your business, negotiating terms of a deal and managing the overall process from start to finish.
6) How do I know what my business is worth?
The value of a business is best determined by conducting a business valuation. Many factors influence the actual estimate, such as, company earnings & profitability, fair market value of physical assets, buyer interest in a specific industry or sector and/or the demand for a Seller’s product or service, etc.
A business valuation is not required for a sale, however, it is a serviceable tool even if a business owner is years away from selling. It’s helpful for tax purposes, estate planning, qualifying for a loan, etc. A valuation is critical for key decisions related to growing and managing a business as well as a future sale.
7) When is the best time to sell?
The best time to market your business is when sales and earnings are trending up. To that end, consider starting to prepare 3-5 years from your desired exit. This allows time to review and address any financial and/or operational issues that may affect the valuation of the business.
8) How long will it take to sell my business?
There is no absolute answer except it varies – as many factors affect the timing of a sale. Buyers review acquisition opportunities based on organizational fit, their business strategy and consider a Seller’s industry, financial condition, geography, competition, price, etc. Partnering with a business broker can facilitate a smoother process and accelerate the time to close.
9) Am I required to remain after the transaction closes? For how long?
While Sellers often remain on staff post-closing to ensure a smooth transition, it is not a requirement and depends on the Buyer. It’s customary for transition details (Seller’s role, duration, compensation, etc.) to be addressed and negotiated as part of the deal.
10) Why do some business transactions fail to close?
There are a number of reasons that a deal may fail to close. Often, a decline in a business’ financial performance is cause for a buyer to walk away. Also, surprises uncovered during due diligence can negatively impact a transaction. It’s a best practice for a Seller to disclose any issues promptly and fully to maintain a buyer’s trust and keep a deal on track.
11) How can I be assured my information remains confidential?
MT Consulting uses a virtual data room as a primary safeguard in protecting online client data. The service facilitates secure document sharing and storage critical during financial transactions. Protected data centers and permission-based user access adds to data safety and eliminates the potential of illegal distribution and viewing.
…They are careful, confidential, and will work for you 24/7 to get the deal you deserve…
– Lisa & Steve Mackell
Their analysis and valuation of my practice coupled with their ability to factor in the intangibles resulted in the most positive outcome.
– Suzan Syron
Need more information? Contact us today.