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SELLING A BUSINESS
START THE PROCESS

Reasons To Sell

  • You want to Spend More Time With Your Family
  • You have another Business
  • You want to Relax
  • Retire

Steps To Sell Your Business With Frazier Capital

  1. Schedule an appointment to meet with a Frazier Capital Business Broker.
  2. Pull Together the documents that are requested by a Frazier Capital Business Broker.
  3. You Will be asked a number of comprehensive questions to help us develop a good idea of your business and what approach that we will take to obtain a buyer’s interest.
  4. We calculate and determine the Market Valuation or Price for your business utilizing Frazier Capital’s comprehensive analysis which includes discretionary income and expenses. This is the most important step and we have valued thousands of businesses in over 300 industries throughout the United States.
  5. Next sign a listing agreement with Frazier Capital Business Brokers to represent you in selling your business.
  6. We then obtain a seller pre-approval of the listing and marketing advertising and potential terms that will be offered.
  7. The Frazier Capital Broker will manage all buyer inquiries and buyer pre-qualification process including having the buyer sign a NDA (non disclosure agreement).
  8. Frazier Capital Business Broker arranges a meeting between the buyer and seller.
  9. Frazier Capital Business Broker assists in writing and presenting any offers and negotiating the contract.
  10. Frazier Capital Business Broker will then manage the timeline from the acceptance of the offer until the closing and transferring the business to the buyer.


Recommended Reading For Sellers

Please download our popular book that has been used by sellers and buyers throughout the United States since 1997.  It has been used by the IRS and educators for training.  Half of the book is on selling the business with the other half on valuing a business.

Typical Questions That a Seller Has

  • Why Use a Business Broker?
    Business Sellers who have sold their business will tell you that it is a pressure cooker and super stressful to sell their business while they are currently operating their business. There is nothing worse than having non-operating distractions while running your business on a day to day basis. Using a business broker can pay off since the broker can reach out to buyers that they already have, in their directory, as well as reach a large number of new buyers.  They professionally market your business.  This allows the seller to stay focused on operating the business.  Using a business broker is different from using a real estate broker since the listing is confidential.

  • Why Use Frazier Capital Business Brokers (FCBB)?
    We have national experience as well as specific industry experience since 1997, offices on the West Coast and some of the most highly trained professionals in the industry. Frazier Capital is the best choice when it comes to choosing a Business Brokerage to represent you. Our Business Brokers are experts in the field of business evaluation having done work in over 300 industries, business sales, business marketing, our in-house legal staff, and buy/sell negotiations to satisfy both buyers and sellers alike.

  • Will the Business for Sale Kept Confidential?
    Since selling a business is different from selling a house or commercial real estate, the sale of a business needs to be kept confidential. As a result, all buyers are required to sign a non-disclosure agreement/buyer confidentiality agreement (NDA). This is done prior to releasing information to the buyer.  As a result, this process greatly restricts employees, suppliers, competitors and suppliers from finding out that the business is being sold.

  • How Will my Business be Advertised?
    Frazier Capital uses the best rated websites in the area, as well as national and international sites to promote your business. Other advertising methods can be used based upon the type of business

  • How do I Know What the Value of the Business is? 
    Not only does Frazier Capital have experience in valuing businesses since 1997, it has also written over 10 books on valuing businesses. We have valued thousands of businesses throughout the United States and Internationally and have some of the best trained business valuation professionals in the industry. It is important that you are honest with yourself and your advisors if you are looking for a certain sale price. The price that you want may not be supported in the market. Remember, a buyer will need to support their family from the cash flow of the business.  If the business is losing money, then buyers will not be interested. One question you should always ask yourself as the seller, “would I buy the business for the price I am asking?”

  • What is the Timeline for Selling my Business?
    The typical time frame to sell a competitively priced business is 90-120 days.  On the other hand, this depends upon the income of the business, type of business, terms of the sale, location, as well as the seasonality of the business. Frazier Capital can provide you with information on your local market. We typically ask for a listing agreement for 18 months.

  • What do I need to do to get Started?
    Frazier Capital suggests cleaning the facility, making sure that the bathrooms are spotless and the facility has been painted.  Next get junk out of the facility, this also includes cleaning-up the balance sheet and profit and loss.  In addition, the financials need to be sent to a CPA in order to have them compiled on a CPA letterhead. We find that this CPA process significantly increases the ability to get the highest price for the business. Finally, start to gather together major documents such as leases, equipment leases, list of property plant and equipment that will be sold with the business, insurance contract that support the value of the assets being insured, any mortgages and notes payable to be assumed by the buyer.  We will provide you with a questionnaire that will give the buyer an overall understanding of business operations.

  • How Will a Buyer Visit my Business?
    Once a buyer has signed an NDA (non disclosure agreement), reviewed the information that we provide to him, check the buyer’s fund availability, and expresses interest in purchasing your business, a Frazier Capital broker will schedule a meeting between you and the buyer.

  • What Kind of Offer Will the Buyer Write?
    The buyer will provide an offer that provides the price, terms and contingencies (if any) and may request further documentation (if any). The Frazier Capital broker will then present the offer for your approval or from the buyer’s broker.  There is typically a short time line in order to accept or reject the offer. Buyers want to maintain momentum.  As a result, if you delay providing information then this will make the buyer think twice about the purchase. Having a fully completed brochure with enough financial and operational information for a qualified buyer to make a decision to pursue the purchase of your business, needs to be sent the moment buyer completes the NDA.  This demonstrates your seriousness about selling the business.

  • Who Will Field Email and Phone Call Inquiries for Selling my Business?
    Frazier Capital’s professionally trained staff will respond to the inquiries.  The inquiries are either serious or tire kickers.  Frazier Capital will screen these buyers in order to decide if they need to move forward.

  • How will the Sale be Negotiated?
    Your Frazier Capital broker is trained to negotiate the sale of the business.  There will be a specific order to assist in these negotiations.

  • Do I Need to Train the Buyer, And if so, For How Long?
    This depends upon the complexity of business. If the business is relatively simple, then 30-60 days is typically the norm with a consulting agreement tied in to pay you for questions that may occur during the first year.  However, if this is a more complicated business, then the buyer may ask for 30-180 days in order to have you train him or her. Once again, a consulting agreement will be tied to this longer duration.

  • Can I Open a New Business in The Future?
    Typically, there is a non-compete agreement within a certain geographic area.  This can last for between 3-5 years, but depends upon the type of business and geographical location. A non-compete contract will also prevent you from being involved with anyone who wishes to open up their own competing business.

  • Will Seller Carry or Seller Financing be Required?
    There is no requirement for the seller to carry a note on the business for the buyer.  30-40 years ago this was typically required to sell over 50% of the businesses.  However, with SBA financing there is typically less of this need.  On the other hand, if the business is difficult to sell, some seller financing may be required.  Also, if the seller wants a higher price than what it is worth, then seller financing may be needed. In strong economies seller financing is not needed.  In weak economies there is a higher need for seller financing.

  • At What Time Should I Tell my Employees of The Sale?
    The best time to tell the employees is when you introduce the buyer to the employees. On the other hand, if there is a key employee, then the buyer and key employee need to be introduced before the closing of the transaction. Frazier Capital will guide you through the best timing.

  • How Will I Know That the Buyer has Good Credit?
    Frazier Capital does not check the credit of the buyers.  However, the buyer will need to provide a credit report as well as proof that the buyer is not litigious. Frazier Capital will require all buyers to demonstrate their ability purchase the business.


Questions to Ask a Business Broker or M&A Advisor

  1. What is the typical length of time to sell my business?
  2. What kind of buyers are most typical for my business?
  3. Should I do a stock or asset sale?
  4. Are my financial statements ready and appealing to a buyer for their due diligence?
  5. What kind of deal structure will there be when I sell my business?
  6. What is the value of my business?
  7. What should I do to prepare my business for a sale?
  8. What will increase or decrease the value of my business?
  9. What sort of process is there in selling my business and finding a buyer?
  10. What are your fees?
  11. Can I see a copy of your broker’s contract?

Questions to Ask Your CPA

  1. Will you help me put together my financial statements for the due diligence process?
  2. What amount of tax will I pay when I sell the business?*
  3. Will you be able to respond to buyer questions in a timely fashion?
  4. Have you helped other clients to sell their business?

*Note, you will only be able to have this answer when you have a price and deal in front of you. An experienced business broker can discuss this with your CPA.

Question to Ask Partners & Key Employees

  1. Will you be part of the sale or will you be leaving?
  2. What concerns do you have about me selling the business?
  3. What are your concerns about working with a new owner?
  4. Will you help me if I need you during this process?

Questions to Ask Your Financial Advisor

  1. What will I do with the proceeds? Should I use this as part of my retirement plan?
  2. How will you assist me in managing my money once I sell?
  3. Should I donate some of the proceeds to charity?
  4. Will I need a certain amount of money (after fees and taxes) in order to sell?

Questions to Ask Friends & Family

  1. Are there any concerns about me selling the business?
  2. Will you support me in my decision?
  3. Is there anyone in the family that wants to buy the business? If so, does the family member have the experience and ability to run a business, or will they drive it into the ground?

Questions that you Want to Ask Your Attorney

  1. Can my contracts that are associated with the business be assignable?
  2. Will all of the contracts that are part of my business be able to be re-assigned to the new buyer?
  3. Is there a legal reason as to why I cannot sell my business or is harder to sell?
  4. Should I do any legal due diligence before selling my business?
  5. Have you ever done a corporate transaction?

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