Business exit planning helps provide a road map for maximizing value. It sometimes takes a couple of years to implement an exit plan in order to sell the business and achieve the greatest return.
Every business owner will be leaving their business either voluntarily or involuntarily. All business owners should know the value of their business and have an exit plan in place.
Business owners will likely be forced to sell their business below fair market value. And create avoidable stress and frustration.
Business owners need to know the fair market value of their business. It is impossible to have an exit plan without knowing your business's value.
Most CPA firms will defer a business appraisal to a qualified business brokerage firm. CPA firms do an excellent job with taxes & general accounting. Few have experience in selling a business and/or the funding process. Both are an integral part of determining a business's value.
The cost can vary depending on business size, complexity, quality of financial records, and type of report required. Comprehensively analyzing a business, including its financial records, equipment, and real property, is a time-consuming process.
Selling a Business.
Of course, the time it takes to sell a business depends on several factors, such as market conditions, type of business, industry, and price. A smaller company can take 2-5 months, a larger company 6-12 months.
There are several ways to purchase a business:
- SBA Loan.
- Seller financing.
- A combination of all three.
The loan process via bank/SBA is frankly a nightmare and extremely difficult to navigate. PBB has long-standing relationships with private and conventional, which help our buyers to obtain successful loan approval from lenders.
We understand the importance of strict confidentiality. ALL interested buyers must complete an NDA, personal profile, and financial statement before we release any information. Then we’re cautious about the number of initial details released.
Buy a Business.
Your business broker will handle all the details of the business sale, including:
- Recommendation of legal representation accountant to help with financial due diligence.
- Coordination with other business professionals such as business/property appraisal, environmental assessment, and survey.
An existing business has proven financial records, trained employees, customers, cash flow from day one, ongoing marketing/advertising programs. Sellers will provide long-term transition assistance and, in some cases, seller financing. Most business failures happen primarily in small/medium start-up businesses.
At PBB, we perform a business valuation for a business owner to determine its fair market value and review it with the seller. PBB does not list businesses based on what an owner needs and/or wants. The price must be close to fair market value, or we do not list it.