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Seller FAQs | | | Here are answers to some of the most common questions we are asked. If you have a question that you would like to ask, please don't hesitate to contact our office at
480-736-8799. | TOP 5 THINGS YOU CAN DO NOW TO GET YOUR BUSINESS READY FOR SELLING: 1. Put systems in place so that a Buyer is able to imagine themselves in there doing what you do every day. If it's "all in your head" make a procedures manual. Avoid making yourself so integral to the business that nobody can do what you do.
2. If you have a lot of dead inventory, get rid of it. Liquidate it, sell it on Ebay, just get rid of it.
3. Have a web site, even if it just refers people to your business address and what you sell. Someone can add to it later.
4. Keep good books and records. This can't be stressed enough. If you are taking money out of the business and not reporting it on your taxes stop doing that at least 3 years before you are ready to sell and pay your taxes. You will get more for your business when it sells, decrease the chances of having to take a large note and have a much larger market of Buyers who will be interested in your business as well as Lenders who will be willing to loan on it.
5. Pay off your debts if you can. It will make you better able to negotiate and when the business sells you will have to deliver the assets free and clear of any liens or encumbrances anyway. Q: How long have you been in business? | A: Apeiron has been in the Phoenix Metropolitan area for more than 20 years. Apeiron bought an existing Business Brokerage in 2000 and has grown the company to what it is today building the reputation as one of the top rated business brokerages that Arizona has to offer. | Q: How do you protect my confidentiality?
A: Your confidentiality is of utmost importance to us when locating a buyer for your business. We have all prospective buyers fill out a Non-Disclosure agreement stating that they are aware that the sale and associated information is highly confidential and could damage the business if not kept confidential from employees, vendors and customers. We also inform them that they may be held liable for a breach of that confidentiality.
Q: How do you market my business?
A: The public has access as soon as it gets posted online on the most viewed sites for business sales. Of course, no one has access to the name and identifying aspects of your company except us. We do a prospectus of your business. It includes financial information for the last 3 years as well as an overview of your business structure, what you as an owner do and what a buyer could do to grow the business. We post your business on the most popular web sites where buyers go to look for businesses to buy. We advertise in trade publications when appropriate. We advertise listings on our own web site, www.apeironbbcom. We will also create a database on companies that could be interested in your business for their company's growth plans as well as companies that would benefit by diversifying and being able to sell their existing customers the services of your company. We normally do this for every business that offers a very specialized service or product. We also have sold businesses by sending e-mails to business owners who are in the high tech industry and used to communicating that way.
Q: How do I know the buyer has the money to buy my business?
A: We have the buyer fill out a personal financial statement telling us how they plan to fund the purchase of a business and where the money for the down payment will be coming from. This has proved to be a good process for us and our clients.
Q: How much is your commission?
A: We charge a minimum commission of 12% of the selling price. We use the Lehman Scale to determine commission on businesses that are larger where the commission will be reduced for each million dollars in sale price. Real Estate commission is 6%.
Q: How do you evaluate my business?
A: There are different ways to evaluate your business depending on what type of business you have. Do you have an inventory based business or a service business? There are whole books written on business evaluation. Generally speaking, for a service based business you might be looking at 2.5 to 3 times Cash Flow. We can go into more depth when we meet and give you a price for your particular business. Many factors have to be considered such as replacement for family members that may go when the business sells. We can go through all the factors that will have an impact on the price once we know more about your business.
Q: How long do you think it will take to sell?
A: We list all businesses for 1 year. We do not get paid until your business sells so it would obviously be more advantageous for us to sell your business as quickly as possible. Looking for that person who wants to get up every day and be "you" is harder than you may think. We never know when we will find the perfect buyer but we do know what businesses will be attractive to buyers and why. We also know how to make them as attractive as possible and how to position them for sale. We have sold businesses 1 week after listing them, 3 months, 6 months or almost a year after listing them. Apeiron Business Brokers has a fantastic track record for sales of the businesses we list, 83% vs the industry average of only 25%!
Q: What do you do?
A: We do everything to sell your business so you can continue to run it and keep the sale confidential. We do a Prospectus on your business giving a prospective buyer a good idea of what it will take to run your business and also to grow it. We screen buyers before you ever hear about them so that we don't waste your time with unqualified prospects. We have them sign a Non-Disclosure Agreement and fill out a Personal Financial Statement before they ever see a Prospectus. We pay for all advertising costs including internet and print ads in newspapers and trade publications. If necessary, we will send letters to other companies that might be interested in diversifying or growing by purchasing your business. All advertising is done "blind" and no information is given that would be able to identify you specifically. We help qualify your business and the buyer with SBA lenders for financing. We write up the contracts, counter offers, set up escrow, help the buyer set up a corporation or LLC and help facilitate the process every step of the way from due diligence to the close of escrow, we are there.
Q: What do I need to do?
A: You will need to run your business like you have no intention of leaving. The best way for you to facilitate the sale of your business is to keep great books and records and don't let your sales drop. If you have a business with contracts, fill that pipeline for the new Owner. It will make them more comfortable about their ability to meet any debt service they may have on the purchase of your business and it will make the lenders comfortable for the same reason. Other things you can do are to respond promptly to offers and counter offers and make an effort to be available to meet with the prospective buyer.
Q: Will I have to take a note?
A: Depending on the experience the buyer has in your field the lender may or may not require you to carry a percentage of the purchase price, usually 10% or so. Also, it makes buyers more comfortable if for some short time after closing if you have an interest how they are doing and an interest in helping them to hit the ground running. Sometimes the seller will not be asked to carry a note.
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