Frequently Asked Questions by Sellers
What is my business worth? The number one question a seller asks when contemplating a sale of his or her business, is what is its value, what can I realistically get for it? On the other side of a transaction, a potential buyer also wants to know what the business is worth before making an offer. Watch the video above to learn more.
What are the tax ramifications of selling a business? Your business might be the single biggest asset you will ever sell. Therefore, it is essential to understand how the purchase price will be allocated or divided to avoid any surprises regarding your tax liability. Capital gains or income taxes due to the sale could fall under this liability. We can provide a consultation and tax structuring report to give you peace of mind when dealing with your sale. Watch the video above to learn more.
Do I have a sellable business? Business owners put long hours and years of experience and dedication into their businesses, so many are surprised when they hear their business has little value or almost no sellable value at all. We want to help you look at the top 9 things that make a business unsellable like the business being priced too high, your outstanding liabilities or the lack of seller financing. Our goal is to help you strategize to make the business sellable again. Watch the video above to learn more.
Should I offer seller financing? Offering seller financing can many times be a benefit to the sale of your business. With the sale of a small business, it is very common to include seller financing as part of the deal. Sometimes the only way the deal will get done is if the owner finances part of the business purchase or the seller is willing to hold a note for the business. It is possible to receive as much as 30-40% below the asking price if demanding an all-cash deal. Watch the video above to learn more.
When should I contact a business broker? It is advantageous to contact a business broker to review your options as soon as you consider selling your business, even if that may be a few years down the road. We can help discuss options, identify any issues or devise a plan to help you increase the value before you put your business on the market. Watch the video above to learn more.
Finding the perfect buyer. We have a proven process to help sellers find the best buyer for their business. Once we have gotten to know you, the next step of the process is conducting a business assessment and to determine if the asking price is fair market value. Our process allows us to create an ideal buyer profile, so we don’t waste anyone’s time and work only with qualified buyers. Watch the video above to learn more.
What is the process of selling a business? Our job as business brokers is to guide a business owner through the sale of their business. We know you have worked so hard to build your business, so we designed our proven process to assist first-time sellers, but it is also beneficial to even the most seasoned seller. Deciding to sell a business can evoke a lot of emotions, but our proven, proprietary process combined with effective tools and resources, help people sell their business with peace of mind. Watch the video above and Click Here for an in depth look at Murphy’s Proven process for selling businesses.
What are the different types of business valuations? There is a need to establish the value of your business before you plan on selling it, but there are other reasons a business valuation might be needed, including estate planning, divorce, a merger, or litigation. We will provide a valuation based on your needs. Watch the video above to learn more.
Advantages of using a business broker. A business broker can provide peace of mind by helping you move through the selling process efficiently, determine the fair market value of your business and reach qualified buyers. A business broker is a professional that acts as an intermediary in the transfer of ownership of a business. Unlike a real estate agent, a broker’s training is specialized and their focus is on every step of the deal, not just the final transaction. Therefore, a broker can assist you to get the deal closed, and also significantly increase the amount you walk away with. Watch this video to learn how a business broker adds value to the business owner.
Additional Questions to Ask When Hiring a Business Broker
How will you protect the confidentiality of the process? Maintaining confidentiality in the business sale process is so critical it is considered the cornerstone of the Business Brokerage / Merger & Acquisition Transactional Advisory industry. Murphy brokers will use blind listing advertisements that never mention the name or exact location of the business. Instead, general references are made to the industry, geographic area, and financial performance to entice potential buyers to inquire further. Buyers are then required to sign a Non-Disclosure Agreement (NDA), which makes it very clear that the buyer is not permitted to discuss the potential transaction with anyone with exceptions for partners, attorneys, and other financial advisors. Even with a signed NDA, great care is taken to ensure that a potential buyer is qualified to buy the business before confidential information is released, including a detailed conversation about the buyer’s experience and financial capability.
Have you ever sold a business like mine? Murphy has handled thousands of business transactions all over the United States & Canada. The process of selling a business applies to nearly all businesses with only minor adjustments made for specific industries. Some industries do have special permits or licensing requirements that need attention, and we are experienced with most of them. Murphy Business Sales of Ohio has been involved with transactions in various manufacturing, distribution, service, retail, restaurant & hospitality, and nearly all trade style businesses including HVAC, roofing, windows, siding, cleaning, construction, electrical contracting, plumbing, and landscaping.