Sell a Business: Frequently Asked Questions
Selling your business is a major decision; working with a business broker can provide you with the professional assistance necessary for a smooth and successful transition.
Here are some commonly asked questions by sellers along with responses based on our professional experience and knowledge. If you have questions on any topics that we have not covered, please don't hesitate to ask us. Or, if you have any questions about the sale of a business, we are always happy to try to answer them.
- What is my business worth?
- For tax purposes, I have kept my business income low. Will this hurt my chance of getting a good price?
- What information will a buyer want to see?
- How much time do you need to sell a business?
- How do you charge for your services?
Question: What is my business worth?
Business valuations are very tricky. Before we price your business, we review every aspect of it and benchmark it against North American market data – to see what similar businesses go for. This helps us set a reasonable “Ask” price. See
business valuation page for more detailed description of the issues involved.
Question: For tax purposes, I have kept my business income low. Will this hurt my chance of getting a good price?
It depends. One of the first things we review are your financial statements. We then make various expense adjustments, based on your input. However, if you are thinking of selling in the next few years, you would be well advised to eliminate any “grey area” expenses. It may cost a bit more in terms of taxes, but the price you get will be a multiple of your bottom line – don’t be penny wise and pound foolish!
Question: What information will a buyer want to see?
Buyers will want to see everything – financials, tax records, employee records, government filings, legal documents, letters of incorporation, material contracts, etc. However, what is important is what you show when – we make sure you only show what you need to to get the buyer to the next level.
Question: How much time do you need to sell a business?
On average, it takes 6-9 months. Some sell faster and some take longer. Businesses are not like houses – confidentiality is paramount, so no “for sale” sign is placed on the premises, and each business is unique, so timing will vary.
Question: How much do you charge for your services?
We provide a range of services. Some are charged in advance, some are 100% contingency (paid only after the business is sold). Which one applies in your situation depends on size, complexity, and your requirements.
Contact Beal Consultants for a free, no-obligation proposal.
