Frequently Asked Questions About Selling A Business In 2022
FAQ
How do I figure out how much my business is worth?
The market value of your business is usually based on multiples of your yearly earnings/profits. Although on a more detailed level, there are several factors that determine how much a buyer will pay for your business. This includes cash flow, historical financial performance, recurring revenue, location, industry, and the current state of the economy.
How long does it take to complete the sale of my business?
On average, it takes about 6 to 8 months. Larger deals usually take a longer time to close. But ideally, you can complete the sale of most businesses in 7 months.
How can I market my business without my employees or customers finding out?
Going through the right channels to sell your business should be confidential. If you choose to sell your business with IAG, we will keep your business name and other sensitive information hidden until the buyer agrees to a confidentiality agreement.
How can I sell my business quickly?
If your price and terms are right, you can attract buyers faster. Speed up the process even further by removing up-front payments and offering an earn-out.
An earn-out shifts some of the cost of the business to the future, where the buyer pays you a certain amount if the business reaches a performance goal you both agree on.
Is it better to sell my business by myself?
Selling your business by yourself can be a hassle, especially if it’s your first time. You have to hire a CPA and attorney for taxes and legal issues respectively. And that’s besides navigating the complex intricacies of such a major transaction.
To avoid making expensive mistakes while simplifying the process, work with an experienced firm like IAG. We’ve successfully helped close many transactions just like yours — with everyone involved happy with the outcome.
When is the best time to sell my business?
The best time to sell your business is when it is most valuable and attractive to buyers. This is usually when the business is doing well and bringing in a continuous stream of increasing profits.
Who is the best broker to help me sell my business?
The best brokers look out for you as well as the future of your business. They help you land the right deal for your business that’s fair to all parties involved. If you’re looking to sell a company with $0.5 – 20 million in yearly revenue, sign up with IAG.
Key Takeaways
Whether you’re retiring, need some cash, or deciding to change career interests, selling your business can prove to be a smart move.
After you’ve decided on your ideal buyer, prepared your business, and chosen the right time, start working on making it more attractive for the sale by:
- Growing the profits of your business
- Keeping your revenue consistent and increasing, and
- Building a strong base of recurring business/regular customers
Next, follow this step-by-step process to close a successful sale:
- Value your business
- Complete your financial audits
- Get a highly experienced M&A Advisor – like IAG
- Prepare your business’s executive summary
- Put your business on the market
- Choose your buyer
- Allow due diligence to occur
- Close the deal
Our experienced M&A Team of pros can help you with all of this and more!
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About IAG
IAG M&A Advisors is a business intermediary consulting firm, facilitating the buying & selling of businesses. With over 100 years of combined experience, the IAG team has been a leader in the industry by helping the owners of privately held companies “cash in” on all their hard work and get the best payoff possible.
We are here for you if you have questions about selling, and ready to help you get started when you are ready.
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