Selling Your Business? The Process Explained

Almost everyone who sells a business is a first-time seller. Your business is your most valuable asset, and the process of negotiating a sale can be long and complex. Working with an experienced and qualified business broker can make the process much easier and save you enormous time, money, and stress.

Here’s what you can expect when you inquire about listing with us.

We’ll help you assess your readiness to sell.

Exploring why you’re selling now, including factors that may impact your motivation and timeline, is an important step. Some owners are simply ready to retire, while others may be facing life changes (illness, divorce, other family issues) that will impact how quickly they want to exit the business.

We’ll explore your financial situation and determine how much you’ll need from the sale to finance the next phase of your life. We can also quickly evaluate the value you’ll get for your company in the current market. If what you need and what you’re likely to get are too far apart, we can help you develop a plan for building more value and selling at a later date.

We’ll also learn a bit about how your business is organized and whether you have your financial and other documents in order. If that requires some work, we’ll advise you on how to get things cleaned up or organized before we list the business.

If we agree to move forward, we’ll agree to terms and get a comprehensive picture of your company and its operations.

The industry standard fee for business brokers is 10-12% of the sale price. We earn that fee by advising you before the sale on how to maximize your company’s value then listing and actively marketing your company to thousands of qualified buyers. We carefully screen potential buyers to ensure they’re serious, financially qualified, ready, willing, and able to buy and run your company. We keep the deal moving during what may be a months-long process, letting you focus on running your business. And we’ll help ensure your confidentiality is secure and you’re protected from any costly pitfalls during the negotiations.

When we take you on as a client, we’ll work with you to complete a CIM (Confidential Information Memorandum) that gives us information about your company’s history, products, customers, financial performance, workforce and management structure, and operations. The CIM answers 90% of what any buyer needs to know, so we can provide information to prospects without constantly reaching out to you for answers.

We package and list your business and begin CONFIDENTIALLY marketing it to qualified and motivated buyers.

We have thousands of potential buyers in our database, and we make sure they’re aware of your listing. Your listing will contain as much or as little detail as seems appropriate; it’s crucial that your decision to sell remains confidential until you’re ready to close the deal. News of a sale can have a negative impact on your staff, your customers, your ability to get new business and negotiate with vendors, and, of course, be of interest to your competitors. We manage the flow of information, so no one finds out about the sale until you decide they should.

We carefully screen buyers and require them to sign a Non-Disclosure Agreement (NDA) before we release any details about the company or important financial information. Only after you have a conversation with a prospect (which we’ll facilitate and participate in) will we decide to move forward together.

Working with a broker means you have a team on your side that is aligned with your goals – getting the most value and best terms from your company’s sale. This may be your first time selling a business, but we do this work every day. Having a partner you can trust to manage the process will make your life – and your sale – easier.

If you are curious about what your business is with, click here for a complimentary opinion of value.

About the Author:

Jeannie Keen, Certified Main Street Business Broker, Certified Project Manager, Licensed Clinical Social Worker

Jeannie Keen has more than 20 years of business experience, with more than ten years of experience in small business ownership and management. She has extensive experience in leadership, consulting, campaign management, event planning, and fundraising.  After receiving her undergraduate degree from George Mason University, she earned her graduate degree from Virginia Commonwealth University, where she graduated summa cum laude. Jeannie holds a license in Clinical Social Work (LCSW), a Project Management Professional (PMP) Certification, and is a Certified Main Street Business Broker (CMSBB). She is an alumnus of Leadership Roanoke Valley and was the advisor of the year in 2012. She is also an alumnus of UVA’s Sorensen Institute – Political Leaders Program. Jeannie’s true passion lies in helping business owners sell on their terms and helping buyers realize their dreams of business ownership. She lives in Salem, Virginia, with her husband, Mike, and their two children, Olivia and Christian.