Are You Ready To Sell?
What a “loaded” question you may think, but the reality is that almost no business owner and their business reach the qualifications of “Ready to Sell” without professional assistance from a qualified individual.
Getting your business and yourself, as the business owner “ready to sell”, takes quite a bit of work and preparation. You need to know and work with someone whose sole profession is selling businesses. You know your business better than anyone, but do you know how to get it ready and in its best shape to sell? Most probably not and the worst mistake a business owner can make is try to get both themselves and their business ready to sell and then try to sell it themselves.
Experience has shown us that more often than not, the Seller will spend more time and money trying to sell and take less than the business is actually worth because they skipped the professional assistance they needed to insure the best price. In short, leaving money on the table!
Preparation may range from simply sprucing up your business to preparing all financials in their true earnings condition, knowing what your industry is doing, understanding the tax implications of a sale, how you can gather more dollars for your business beyond the closing, knowing who most probably will be your buyer, the best manner in which to market your business and last, but not least, you certainly want to make sure that you know exactly what your business is worth.
Read MoreQuestions to Ask a Business Broker
What Questions Should You Ask a Business Broker in Indiana?
The short answer: Before you hire a business broker in Indiana, ask how they value your business, how many listings they actually sell, how they protect your confidentiality, what their fee and contract terms are, and how they screen buyers. The right broker will answer all of these in plain language and back it up with a track record. About 80% of businesses listed for sale never close — the broker you choose is one of the biggest factors in which side of that number you land on.
You only sell a business once. For most Indiana owners, it’s the largest financial event of their life. So choosing the wrong broker isn’t a small mistake — it can cost you the deal, or hundreds of thousands of dollars in price.
The problem is that most owners don’t know what to ask. They interview a broker, hear confident answers, and sign. Below are the questions that actually separate a broker who will sell your business from one who will just list it. I’ve sold businesses in Indiana for more than two decades, and these are the same questions I’d want answered if the roles were reversed.
How will you value my business?
This is the most important question, and the answer tells you almost everything.
A good broker doesn’t pull a number out of the air or just multiply your revenue. Most Main Street businesses in Indiana sell for roughly 2 to 3 times their seller’s discretionary earnings (SDE) — but that range moves a lot based on your industry, your customer concentration, your recurring revenue, and how clean your books are.
Ask the broker to walk you through their method. They should talk about recasting your financials, comparing your business to recent sales of similar companies, and giving you a defensible range — not a single magic number designed to win your listing.
The red flag: A broker who quotes a high price in the first meeting. Some brokers “buy” your listing with an inflated valuation, then spend the next six months talking you down to a realistic number. Meanwhile your business sits on the market and goes stale.
At Indiana Equity Brokers, we give every owner a free, no-obligation opinion of value before you sign anything. You should know what your business is worth before you commit to a broker.
What percentage of your listings actually sell?
Anyone can take a listing. Closing it is the hard part.
Industry-wide, only about 1 in 5 businesses listed for sale closes within 12 months. That number isn’t mostly about the market — it’s about pricing, preparation, and how hard the broker works the deal. A broker who closes a high share of their listings is doing something right.
Ask directly: of the businesses you list, what percentage sell? Then ask to see recent closed deals near your size. A broker who sells $20M companies may not be the right fit for a $1.2M service business, and vice versa.
Will you provide references?
Past sellers are your best source of truth. Ask for the names and numbers of owners the broker has actually sold a business for — not just happy quotes on a website.
Also ask for references beyond sellers: a transaction attorney or an SBA lender the broker works with regularly. Buyers in Indiana lean heavily on SBA financing for acquisitions, and a broker who has strong lender relationships will move your deal through underwriting faster. You can see a sample of our recent transactions and client testimonials for the kind of references to look for.
How will you protect my confidentiality?
This is where a lot of sellers get burned. If word gets out that you’re selling, your employees worry about their jobs, your competitors smell blood, and your customers start looking elsewhere. A leak can cost you the value you’re trying to capture.
Ask exactly how the broker keeps your sale quiet. The answer should include a blind business profile that doesn’t name your company, a signed non-disclosure agreement before any buyer sees details, and a screening process before your identity is ever revealed.
This matters enough that we wrote a full breakdown of why confidentiality is essential when selling your business. If a broker is vague here, walk away.
How do you screen and qualify buyers?
Most people who inquire about a business for sale will never buy one. They’re curious, under-funded, or just kicking tires. Your time is valuable, and so is your confidentiality.
A good broker filters hard before a buyer ever talks to you. Ask what their screening looks like. It should cover proof of funds, financing pre-qualification, relevant experience, and a signed NDA. The goal is simple: you should only spend time with buyers who can actually close.
How will you market my business?
“We’ll list it online” is not a marketing plan.
Ask which platforms they use, how many, and what else they do beyond posting a listing. The best deals often come from a broker’s own network of buyers — search funds, private equity groups, strategic buyers, and individuals already looking in your industry. Ask how big that buyer network is and how they’ll reach it.
You should also ask what marketing materials they prepare. A professional package — a confidential information memorandum, recast financials, and a clear growth story — is what separates a business that gets multiple offers from one that gets ignored.
What are your fees and contract terms?
A broker should be completely upfront about how they get paid. Most business brokers work on a commission paid at closing. Watch for large upfront fees with no clear deliverable behind them.
At Indiana Equity Brokers, we charge no upfront fees — we only get paid when you get paid. Also ask about the listing term and how you can exit the agreement. A one-year listing term is standard, but you want to understand the terms before you sign, not after.
How often will you update me?
Selling a business is a months-long process, and silence is stressful. Ask the broker how often you’ll hear from them and how. You want a clear expectation — regular updates on buyer activity, showings, and feedback from the market — so you’re never left wondering what’s happening with the most important sale of your life.
Who exactly will be working on my deal?
At some firms, a senior broker wins your listing and then hands the actual work to a junior associate. Ask who your day-to-day contact will be, and who will be in the room when offers come in. You can meet the people who’d handle your sale on our team page.
Common mistake: choosing a broker on price alone
The biggest mistake I see Indiana owners make is hiring whichever broker quotes the highest number. It feels good. It’s also the easiest promise to break.
A realistic price backed by a broker who knows how to prepare, market, and close will beat an inflated price every time. An overpriced business sits, loses momentum, and often sells for less than it would have at the right price from day one. Choose the broker with the best process and track record — not the biggest opening number.
Frequently Asked Questions
What questions should I ask a business broker before selling my business? Ask how they’ll value your business, what percentage of their listings actually close, how they protect your confidentiality, how they screen buyers, how they market the business, and what their fees and contract terms are. The right broker answers all of these clearly and backs them up with recent closed deals.
How do I know if a business broker is good? Look at their track record, not their pitch. Ask what share of their listings sell, request references from past sellers, and confirm they have experience selling businesses your size and in your industry. A strong broker is upfront about fees, has an active buyer network, and protects your confidentiality from day one.
How much does a business broker charge in Indiana? Most business brokers work on a commission paid at closing, typically a percentage of the sale price, with the rate often higher on smaller Main Street deals. Indiana Equity Brokers charges no upfront fees — we only get paid when your business sells. Always confirm the fee structure and listing term in writing before you sign.
How long does it take to sell a business in Indiana? Most Main Street businesses take about 6 to 12 months to sell, from listing to closing. Clean financials, a realistic asking price, and a broker who screens buyers well can shorten that timeline. About 80% of listed businesses never close at all, so preparation and pricing matter more than speed.
Should I use a business broker or sell my business myself? You can sell on your own, but most owners struggle to value the business correctly, maintain confidentiality, find qualified buyers, and manage due diligence while still running the company. A good broker handles that process, protects your identity, and usually nets you a better price — which is why most successful sales go through one.
Bottom line
The questions above aren’t a formality. They’re how you find out whether a broker will actually sell your business or just list it and hope. Value method, close rate, confidentiality, buyer screening, marketing, and fees — get clear answers on all six before you sign anything.
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FOR YOUR CONSIDERATION
- BUYERS WANT CASH FLOW
Recasting financial statements will help you provide a potential buyer with a better view of cash flow. Cash flow is not the same as profit. All potential buyers will want to see the income tax returns, profit and loss statement, owner compensations, etc.
- LOOKS CAN MAKE A DIFFERENCE
Just as you will need to do all that you can do to show a well organized, profitable business, you also will need to make sure that your facility is as aesthetically attractive as possible. Anything that you do to increase sales, increases profits and adds to that important cash flow that buyers seek.
- ADD VALUE TO YOUR BUSINESS
Don’t overlook the impact of a loyal customer lists, proprietary products, well-maintained equipment, special computer software programs, unique services or products and good employees will make when considering the value of your business.
- ELIMINATE SURPRISE
If your business has any flaws, be open about them. Do not allow legal, environmental or any other undisclosed problem to kell the deal. You need to resolve any problem before you market your business for sale.
- ALWAYS SEEK PROFESSIONAL ADVICE
The R. A. Kent Company, LL. Professionals are experienced, credentialed, and knowledgeable in helping buyers and sellers achieve their goals. Call us today.
TEN STEPS FOR A SUCCESSFUL SALE
- Your reason(s) for selling your business and your future goals need to be clear and well thought out before you try to market your business. A prospective buyer will want to know why you are selling and may be curious about what you intend to do after the sale.
- A poor economic climate and/or a peronal emotional dilemma can cause you to accept a deal that is not in best interest for you or for a buyer. It is important to market your business for sale at a time when you are not under pressure to sell.
- As soon as you have a firm objective to sell, gather key information to facilitate the marketing and divestiture process:
- Three years of profit and loss statements.
- Three years of Federal income tax returns for the business.
- A complete list of business assets (fixtures and equipment).
- All lease agreements and related documentation (property and equipment).
- List of loan amounts and payment schedules.
- Copy of franchise agreement (if applicable).
- Total worth of the assets.
- Names of outside advisors (accountant, attorney etc.).
- When you decide to engage a professional to help guide you through the process of marketing and selling your business, you agree to become part of a team effort to make it happen.
- Confidentiality will ebe emphasized by the professional as he works on your behalf to find a buyer just as you will maintain confidentiality about a pending Sale as you go about your day-to-day business operations.
- It is very important that you look at your business as if you are a potential buyer. What do you see? This may help you determine what you need to work on or what you can do to improve a first impression.
- As you navigate through the process of divestiture, keep the following in your focus:
- Keep normal operating hours.
- Keep your facility and your equipment in top condition.
- Remove any superfluous items or items not included in the sale.
- Spruce up the exterior and the interior of your property.
- Engage a seasoned professional for the best possible results. To parphrase David Gumpert, former Harvard Business Review associate editor, experienced lawyers know the necessity for some risk in negotiations, whereas inexperienced professionals are often reluctant to advise their clients to take any risk.
- Flexibility and patience will pay off in the long run in getting the best deal. The right buyer may be better than a higher price. You have probably spent years building your business and yoiu certainly will want it to continue to be successful.
- A successful deal is created when the transaction represents a win-win where all parties walk away happy.
Is It Time to Raise Prices?
Increasing the price of your products or services is, in most cases, the most difficult decision a business owner has to make. Looking at the negatives is easy.
• Our business is too competitive to increase prices.
• Our customers/clients are used to our pricing.
• Customers are too price-conscious.
• We won’t be able to get new customers/clients.
• We are known for low prices.
• We have a lot of repeat customers, they won’t pay more.
The list of reasons why prices shouldn’t increase could go on and on. The fear is always that people won’t pay the increase and profits will suffer.
Before considering a price increase, one must look at their current pricing method. Do you work on a cost plus a certain mark-up? If you use a mark-up percentage, are all items marked up by the same percentage? Do you try to maintain a price comparable to the competition? If you work on an hourly rate, for example consulting, when was your last increase? Have costs increased and have you increased prices to compensate for them?
Looking at the positives is also easy. Profits will increase; and the price of the business will increase based on the increase in sales and profits. Funds will be generated to do that advertising or promotion you have always wanted to do. With increased profits you can hire that extra salesperson you know will increase business; you can install the technology you know will increase service and lower costs.
As Ravi Mohammed said in his book, The Art of Pricing, “Let me ask you, will a 1% price increase really cause your customers to stop purchasing from you?” A 1% increase on a business doing $5,000,000 a year is $50,000 to the bottom line. On a business with sales of just $500,000, a price increase of only 2% would bring in $10,000 to the bottom line.
One does not need to increase prices across the board. On fast-selling items, increase the price more than on slow-moving items. By doing so, you can test the waters on increasing prices. As Ravi Mohammed also points out, “McDonald’s profit on hamburgers is marginal, but it has substantial profits on French fries and soft-drinks.”
You many decide not to increase your prices, but at least you have taken a look at your pricing policies.
