Think about the last time you bought a car or a house. The paperwork to change ownership in these items is enough to drive most crazy. These transactions in comparison are relatively simple. Selling a business not only requires great attention to detail to resolve the legal issues for the change of ownership, it also deals with the emotional aspect of selling something the owner may have spent their entire life building.

The first step in placing a value on your business is identifying the "Right Buyer." The range of values that different Buyers may be willing to pay is staggering. Buyers pay for opportunity. The Buyer who perceives the greatest opportunity is the Buyer willing to pay the most for your business.

It's never too early to plan. The well planned business owner is always ready to present their business to sell. Gathering documents, valuations, preparing an exit strategy all takes time. The earlier the better.

This could be influenced by several different factors. Some buyers may want you to stay on to assist with the transition. If you have close ties with your customers or key employees, the buyer may request you stay for as much as a year. This is negotiated during the selling process along with the compensation you would require to remain. You should not expect to work for free. If your business runs smoothly without your presence the transition process should not take long.

Assume it will take a lot longer than you think it will! While it varies greatly from one transaction to the next, the typical selling time for a very small business such as a retail or service business ranges from two to six months. For a larger business, a six- to twelve-month time frame is more common.

At FNBB we strive to make the process simple, clear and concise.  The key to success is removing the emotional ties that may hinder a deal and to ensure a serious buyer is presented with a complete picture of the business with all appropriate supporting documents.

Determining worth can also be a stumbling block to successfully selling a business. Once a potential buyer receives unclear, or worse, inaccurate information, they will typically end negotiations and move on to a business that presents a better picture. Providing potential buyers clear and complete financial information, or even better, a professionally rendered valuation, will ensure a buyer remains at the negotiation table.