If you are on the road to sell your business, you probably already know the importance of confidentiality when it comes to maintaining the integrity of your business. If you don’t, here’s why it is completely and totally necessary:

When the average person hears that a business is for sale, it immediately conjures the image that the business is in some kind of trouble – possibly teetering on the brink of failure. This is, of course, not reality – but this dangerous false perception can cause real havoc within your business if the word gets out that you are trying to sell. Think about what your employees will think if they think the business is about to close the doors. Think about what your competition might do if they think you are about to go under. You can lose vendors, contracts, future customers. Not good.

This is why, instead of trying to sell your business on your own, you really need a good business broker at your side. One of the major responsibilities of a business broker is maintaining that all important confidently – and therefore the integrity of your business.

How do we as brokers maintain confidentiality?

We ask questions, do our homework and we make people sign legally binding confidentiality agreements.

What kind of questions do we ask? The kind that will weed-out the sneaky, sneaky people who have no business knowing that your business is for sale.

We get a list of people from you that you don’t want knowing the business is for sale, like your current or former staff or a big competitor. We get the full name and physical address of anyone who wants to sign a non-disclosure agreement for your business. We “Google” people to find out if they really are who they say they are. We have multiple ways to research prospective buyers, and we use those research tools. By doing our homework, we ensure that your confidentiality stays in place.

Doing our homework also means we catch sneaky people, and we catch them all the time. Staff members who pose as someone else to find out if the for-sale rumors are true. The owners of competing businesses who have their parents or siblings call, pretending to be buyers. Real estate agents posing as business brokers calling on behalf of someone on the don’t-disclose list.

Our diligence when it comes to confidentially is what keeps your business safe. A buyer on their own probably isn’t going to know the industry well enough to know when someone is posing as someone they’re not. You aren’t going to have the time to properly vet curious potential buyers – you need to run your business and prep it for sale, both of which take enormous amounts of time and energy. Don’t go it alone and risk irreparably damaging your business. Having a good broker at your side is essential to keep confidentiality in place.

Do you have more questions about the importance of confidentiality or how we go about keeping it in place? Would you like to know more about other parts of the business selling process? Ask us! Please leave questions or comments here and we would be happy to help.

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com

No Comments »

What Can I Do To Help Sell My Business?

You can cooperate fully with us and any other professionals that you are using. A buyer will want up-to-date financial information.  If you use an accountant or bookkeeping firm, you can work with them on making current information available.  If you are using an attorney, make sure he or she is familiar with the business closing process and the laws of your particular state.

You might also ask if their schedule will allow them to participate in the closing on very short notice.  If you and the buyer want to close the sale quickly, usually within a few weeks, unless there is an alcohol or other license involved that might delay things, you don’t want to wait until the attorney can make the time to prepare the documents or attend the closing.  Time is of the essence on any business sale transaction.  The failure to close on schedule permits the buyer to reconsider or make changes in the original proposal.

And finally, your team of advisors must all be working towards the common goal of selling your business for the best price and terms available in the marketplace, and closing the sale as quickly as possible!  Only by being as cooperative as possible with our firm, can we best handle your business interests.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

No Comments »

What Happens When There Is A Buyer For My Business?

When a buyer is sufficiently interested in your business, we will help in the preparation of an offer or proposal.  This offer or proposal may have one or more contingencies.  Usually, they concern a detailed review of your financial records and may also include a review of your lease arrangements, franchise agreement (if there is one) or other pertinent details of the business.  The buyer’s proposal will be presented to you for your consideration.  You may accept the terms of the offer or your may make a counter-proposal.  You should understand, however, that if you do not accept the buyer’s proposal, the buyer could withdraw it at any time.

We will submit all offers to you for your consideration.  At first review, you may not be pleased with a particular offer; however, it is important to look at it carefully.  It may be lacking in some areas, but it might also have some pluses to seriously consider.  There is an old adage that says, “The first offer is generally the best one the seller with receive.”  This does not mean that you should accept the first, or any offer – just that all offers should be looked at carefully.

When you and the buyer are in agreement, we will work with both of you to satisfy and remove the contingencies in the offer.  It is important that you cooperate fully in this process.  You don’t want the buyer to think that you are hiding anything.  The buyer may, at his point, bring in outside advisors to help them review the information.  When all the conditions have been met, final papers will be drawn and signed.  Once the closing has been completed, money will be distributed and the new owner will take possession of the business.  As your business broker professional, we will work with you throughout the entire sales process.

Are you curious about the typical time frame for the transaction process with a business like yours? Would you like to know more about how to handle initial offers? Ask us! Please feel free to leave questions or comments here and we would be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

No Comments »