|
Business Brokerage
Buy & Sale A Business
Copyright © 1996-2009 CHRITON Company Inc.
|
Reasons to sell If you have come to the decision to sell your business the obvious reason is that you will better off without it, the reason could be many, such as retirement, need of cash or simply because you have found a better investment for your money. The main reason you are selling your business will also be very important to anybody that may be interested in buying it. As a matter of fact, the most asked questions we get from prospective buyers are "if this business profitable?" is " Why are they selling?". If your reason is not a genuine one, most buyers will walk away; in selling a business there is not such thing as a "deal", the buyer will see it as a deal only if he will be able to make it grow.
Type of Business You may own a corporation (a company with shares) or a proprietorship, to sell either one is about the same process but not totally. If you are selling a non incorporated company you will sell the asset and the good will but in the case of a corporation you could sell the buyer your shares. This will make the transaction easier if there is more than one shareholder. In the case of proprietorship if you have a partner you will have to get his approval because there is a good change that the partners have an equal say on any matter that may effect the business.
Selling the Shares or a Limited Company For the seller there are some advantages in selling a business as a corporations:, he may qualify for the lifetime capital tax exemption hence the first $ 750,000 may be taxed at a very low rate. Depending on how the company is structured or what it owns, there may also be advantages for the buyer Every corporation or limited company is a legal entity as such the buyer will acquire all the receivable and the payables of the company (debts) unless stipulated differently and not have any personal liability.
Selling a non incorporated Company In this case you would sell your assets, and yes the lease that you entered when you started the business could be an asset as it may be the "good will" of the business. Meeting with us will be very important to establish the structure of the sale and reduce any misunderstanding with the potential buyer. We will discuss with you your financial statements, your real estate value or the lease, the possible value of the equipments and of the good will and although we can give you a very good idea of what you can expect in terms of the sale therefore save you a lot of money, it always recommended that you also consult with a Certified Accountant and a Commercial Lawyer.
Yes I am interested in knowing more, please contact me
We have collected the following "Frequently Asked Questions" we believe it may help those interested in better understanding the business selling process. If you cannot find an answer to your question or if you have additional questions, contact us we will gladly assist and guide you through the process of how to sell your business.
I want to sell my business, what are the steps in the selling process?
How can Chriton assist me in determining an asking price and market it to potential buyers? We are experienced in the value of the real estate and most of the equipment that business may use to manufacture or operate their enterprise We will show you how we arrive to the price taking in consideration essential information of your business and the value of the equipments and you are always welcome to call an independent equipment appraiser during our initial meeting to validate the value of the equipment. We have years of experience in developing an effective process to sell a business to prospective buyers. an give you the details during our initial meeting but to give you an idea we have a client base of investors in the USA, China, Hong Kong an naturally Canada. Your business will have broad exposure. Many buyers will relocate for the right business. To ensure your confidentiality, all marketing will exclude any specific information on your business.
Does Chriton financially qualify the buyer when I
sell my business? What can I do to help sell my business?
Keep doing hat you do just like if the business is not
for sale, Keep normal working hours. Do not let inventory levels dip below
normal. .Remove equipment or furniture that is not part of the sale.
Keep the business clean and in good repair. Make sure your financial
records are an accurate reflection of revenues, business expenses and
assets/liability levels. Provide us with required information in a timely
manner. Be as accommodating as possible in setting appointments to
meet with buyers.
How long will it take to sell my
business?
What types of offers should I expect to receive when I sell my business?
If your business is properly priced the buyer will be
easily convinced that it is in its best interest to be as close as
possible to your price but the price is not the only essential part of an agreement,
their proposal will contain a review of the financial books and records of
the business, obtaining a satisfactory lease from the landlord if you are
leasing the premises, an agreement on training the buyer and transition
periods. Plus condition on financing and insuring that the business is
what it is said to be as well as that all the necessary permits are in
place.
Will
I
have mortgage take back to insure a successful sale? How long is the training period for the buyer?
Generally, sellers provide two to four weeks of
training in the business with equal time of telephone consultation. If you
are financing portion of the purchase price, you have a financial interest
in the business, properly training the buyer is in your best interest.
Will I have to sign a non-competition
agreement ?
When do I inform my employees that I am selling my
business?
Yes contact me I have decided
to sell my business |
