Imagine you have decided it is time to sell your business. You know the sale has to be accomplished on a highly confidential basis, so you are considering whether you need an intermediary or business broker, but you have limited available time while you maintain your business.
You know you could most likely figure out all the steps involved in selling the business yourself, but time and maintaining confidentiality are the issues.
Following are some of the factors of what is involved, to ensure that you maintain confidentiality:
As part of maintaining confidentiality, and before your identity is revealed, it is important to know something about an inquiring party to be sure it is not a hostile entity, such as a competitor.
Equally important is to get a reasonable sense of whether the inquiring party has the financial resources that will be required to get bank financing.
You have to establish whether an interested party is financially qualified, the amount of salary a buyer will need to take from the business, and the amount of cash injection a bank will require needs to meet the bank’s lending guidelines. This can be challenging to do without an intermediary.
In this day and age, we all know everything is now. When a prospective buyer inquires, an immediate response is required. If you are using a blind phone number and blind e-mail to handle inquiries while running your business, then responding immediately could be awkward.
There are, of course, many other factors involved. This process could be accomplished by a seller while running the business, but that may not be very efficient or appropriate. It may make more sense to discuss these points and other details with a qualified Intermediary or broker.
For a free confidential consultation, please call me at 888-893-6661.
Dolan Sales, Inc. is a Lower Mid-Market Business Broker and Intermediary, serving customers nationwide.