Next, you have to solicit qualified buyers in a strictly confidential manner. Our firm has potential buyers for all types of businesses. We network in many civic, charitable and political organizations, plus run blind ads in local newspapers and trade publications. That makes the phone ring, which is just the beginning of our involvement. We then spend time screening the individuals over the phone to determine their interest and qualifications. We never release information about your business until the potential purchaser meets with us in person, fills out a Buyer Profile form that discloses personal, business, and financial information, and then executes a Confidentiality Agreement regarding the safekeeping of information about your specific business. Then--and only then--do we release fundamental information about your business.

Unlike selling real estate where you advertise openly and announce to the world that you’re selling your house, when trying to sell an independent business you must keep it strictly confidential. You never freely tell your customers, employees or competitor’s that you’re attempting to find a new owner…it causes nothing but headaches and you may hurt your business in the long run.

Your employees may feel threatened by the idea of you selling your business. The new owner may have existing management or employees that might be brought in to fill their shoes or alter their career path. Loosing employees at such a critical time could cause morale problems or even unexpected employee departures. Therefore we do everything possible to maintain absolute confidentiality.

Vendors may also become uneasy about an ownership change. As might bankers and creditors.

Again we do everything to maintain confidentiality.

Competitors might also use news of you selling your business as a tool to gain some competitive advantage. Buyers may become unsettled if they feel you won’t be there to provide for their needs.

Then, once we find a qualified individual who has the desire to own their own business, we set up an appointment with the seller and prospective purchaser to tour the business and get some basic questions answered. The potential buyer must typically have the desire to be independent and own of his/her own company, a high degree of business acumen, true self confidence, good people skills, management expertise, and the financial ability to purchase your business for Fair Market Value. With the right buyer, the seller may want to take the position as the lender and consider owner financing to capture long term principal and interest payments. In this case, the buyer must have a reputable character, a great credit rating, be able to collateralize the loan, and offer personal guarantees…no different that what the bank would expect.

Finally, our job is to share more detailed business information provided by the seller, including a summary review of the financial statements of the business and a Business Valuation. Then, more questions may arise and the potential buyer will most likely want to take another tour of the business so they can speak with the present owner once again and get more questions answered for potential partners, investors, bankers, lawyers, accountants, consultants, and their spouse. We can then assist you in making a bonafide offer to the seller and help you negotiate the price, terms, and conditions of the purchase.