If this is your first time selling a business, the process can seem overwhelming. That’s why so many Minneapolis business owners trust FCBB to make sense out of the selling process. These ten steps are a great place to start:
Schedule a free, no obligation appointment to meet with a First Choice Business Sales Professional in Minneapolis, MN.
Gather documents requested by your FCBB Agent to review during your meeting.
Answer a series of comprehensive questions to develop a clearer picture of your business and what approach we will take to generate interest from potential buyers.
Determine the market valuation/price for your business utilizing FCBB's proven valuation methods including discretionary income and expenses.
Sign listing Agreement authorizing FCBB to represent you in the sale of your business.
Approve listing marketing/advertising and potential terms offered.
FCBB Agent to manage buyer inquiries and buyer pre-qualification process including buyer signing of NDA (Confidentiality Agreement)
FCBB Agent to arrange meeting between buyer and seller
FCBB Agent to assist in writing and/or presenting offers and subsequent contract negotiations.
FCBB Agent to manage the timeline from offer acceptance to closing (transfer of ownership to the Buyer)
Business Seller's Frequently Asked Questions (FAQ's)
Why should I use a First Choice Business Brokers to sell my business?
Owners that handle sales on their own can compromise their business’ value. The business sales process can be long and stressful and can pull focus away from day-to-day operations; this happens at a critical time when owners should be increasing ( or at least maintaining) their revenue in order to maximize their sales price.
When a business broker assists you in the process it can pay off in more ways than just the price obtained. First Choice Business Brokers of Minneapolis, MN will help properly value your business, reach out to buyers they already have, reach a larger number of new buyers, allow you to continue running your business rather than taking the your focus away, maintain confidentiality and most importantly assist with the closing of your transaction based upon experience and training. The most common mistake potential sellers make is comparing the selling of their business to selling a house.
Why First Choice Business Brokers Minneapolis?
With unsurpassed experience since 1994, First Choice is the "Clear Choice" when it comes to choosing a Business Brokerage to represent you. FCBB has offices across the U.S. and some of the most highly trained business brokers in the industry Our business brokers are experts in the field of business evaluation, business sales, business marketing and buy/sell negotiations to satisfy both buyers and sellers alike.
How is the selling of my business kept confidential?
Unlike the sale of a home or even commercial building businesses do not have a "for sale" sign. Instead, business sales must be kept confidential; all buyers are required to sign an NDA (Buyer Confidentiality Agreement) prior to recieving detailed information about your business being provided. This helps to prevent employees, suppliers, customers and competitors from finding out your business is for sale. We take serious precautions in making sure your information is kept confidential.
How will my business be advertised?
With First Choice Business Brokers in Minneapolis, your business will be on the highest rated websites in Minnesota and specifically for your area. Your business will also be posted through our extensive network nationally and internationally. Other advertising mediums may be employed based on your type of business.
How do I know how much my business is worth?
FCBB's proven methods of valuing and marketing will determine a realistic value for your business, and position it in the best possible position to sell. First Choice Business Sales Professionals of Minneapolis, MN are some of the most highly trained professionals in the industry.
How long will it take to sell my business?
On average, a properly priced Minneapolis business tends to sell in approximately 90 days. However, this time frame can vary greatly based on the income of your business (and how easy it is to prove), type of business, the terms offered and the area in which your business is located. Your personal First Choice Business Sales Professional will provide you with more information on your local market.
Will buyers be visiting my business?
Yes, after a buyer has signed an NDA (Buyer Confidentiality), reviewed initial information and expressed a further interest in your business, your FCBB agent will schedule a meeting for the buyer to visit your business at a time that is appropriate for your type of business.
How do buyers write offers to buy my business?
Most buyers looking at your business will be represented by a professional business broker who will assist them in writing an offer that expresses their price, terms, contingencies (if any), and request for further documentation (if any). The offer will then be presented to you for your approval by your FCBB agent and/or the buyer's agent.
Who will handle all the inquiry calls on the sale of my business?
Your First Choice Business Sales Professional will handle the calls. Our agents are trained to deal with incoming inquires and help determine which of those buyers might be ready to move to the next level.
Who will handle the negotiations on the sale of my business?
Your First Choice Business Sales Professional is trained to deal with negotiations on the sale of your Minneapolis business. Your FCBB agent will help navigate you through the entire process and we'll be with you every step of the way.
How long will I have to train the person who buys my business?
Training periods are negotiable, but we have found that most buyers will ask for 30 days. Some types of businesses only require a week or two of training while other may require more time. If a longer period is required, we often find that seller's will negotiate a consulting fee.
After I sell my business can I open another one at some point in the future?
All buyers will ask that you sign a covenant not to compete within a certain area and/or time period.
Will I need to finance part of the purchase price of the business?
There is no requirement that you "carry paper" on your business. However, it is very common that buyers will ask for some type of seller carry note, which opens your business to a larger pool of buyers.
When should I notify my employees that I am selling the business?
While you may have a close relationship with your employees it has been proven time and time again that the best time to tell your employees is when you introduce them to the new owners. Emotionally this may be very difficult for you, but experience dictates that silence is the best practice. The exception to this rule would be if a "key" employee is part of the negotiation for the buyer to keep them on after the sale is complete. In this case there may be some advance notice required to this person and this person alone.
Will my First Choice agent qualify the buyer by checking their credit?
First Choice does not check the buyer’s credit. However, you may request that the buyer provide you with a copy of their credit report. This is not often asked of the buyer as the property owner and/or landlord will likely be obtaining a credit report for their review.
Have additional questions about selling your Minneapolis business?
Call First Choice Business Brokers or submit the form below. We’ll be happy to schedule a free consultation and discuss how we can get you the best possible return on the sale of your business.