NO. Often so called successful M&A and Business brokerage firms charge upfront “marketing” or “Packaging fees”. We have heard every type of “reason” to charge you a fee to list your company. The bottom-line is if this company can’t afford to pay for the marketing of your company then it shows that they are not successfully selling companies therefore receiving success fees.
The first contact Indiana Equity Brokers makes with the potential buyers for your business is via a blind or anonymous profile of your company. Your location is described in general terms as are the details of your company. Key financials are presented as well as a description of your products and services, along with a short list of growth opportunities. Your company is not identified in the blind profile. See more details on maintaining Confidentiality…
It’s critical to closely scrutinize the business brokerage professionals before engaging them to sell your most valuable asset. The answers you receive to the following questions are particularly revealing about the quality and integrity of the firm you are considering:
- Do you have a successful track record? Since 1996, Indiana Equity Brokers has sold over 300 companies.
- Can you supply me with references from former clients who can tell me about your firm? We provide video references and numerous testimonials on our website. Want to talk to other satisfied clients…just ask us.
- Do I have to pay for a valuation? No, we provide you with business valuation, performed by a CPA. There is no cost or obligation for the valuation.
- How will you market my business? No other firm markets as aggressively as Indiana Equity Brokers. That is the foundation of how we sell businesses faster and for more money. Call us and we will review this process with you.
- Do you market nationally? Yes. We list Indiana businesses and marketing them nationally. Indiana Equity Brokers is part of the largest national association of brokerage firm. We have sold businesses to buyers from Oregon to Florida to New York.
In most cases, a competent mergers and acquisitions firm should be able to sell your company successfully in 4 – 8 months.
Either way is possible. You may receive offers for just the business with rental income to you, as well as offers to purchase the business along with the real estate. You can choose whichever option you prefer.
The main reason a transaction is not completed is decreasing or weakening financial performance. If the financial performance of a seller is off materially from the original forecast, the business loses value. Therefore, our emphasis is for sellers to stay on top of their business and to continue to actively grow it as if they’ll continue to own it for another couple of years.
The second most common reason deals fall apart is surprises popping up in due diligence. We work with both parties to ensure all relevant business issues are disclosed up-front. Surprises lead to lack of trust, and lack of trust kills deals. Please keep in mind that most every issue can be overcome provided that there is full disclosure upfront.
You should expect to finance a portion of the transaction. Lenders in today’s market are increasingly requiring seller participation. Seller financing also shows the buyer you have confidence in the future performance of the business.
The answer largely depends on the type of business you have and the skills of the buyer. Training could be as short as two weeks for a simple business or a year for a very complex business.
Our experience has shown that it is best to wait until the sale is completed to tell your employees. However, if there is a key employee or two, the buyer might require speaking to them prior to the sale.
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