Buyer’s Frequently Asked Questions
Q: Why buy a business instead of starting a new one?
A: There are a number of excellent reasons. To begin with, at least 80% of new business startups fail within the first five years. The investment you make in an on-going business purchases has a much higher probability of success. Buying an established business means that you will have immediate cash flow, trained employees, established suppliers and credit. Most importantly, you will have a customer base and referral business already in place. You may also receive financing, training, or both from the owners.
Q:What do I look for when buying a business?
A:First, you should look at your own strengths, weakness, likes, and dislikes to determine the type of business that best suites you as an individual. There is no point in being your own boss, if you hate the business you are running. Once you have decided on the type of business you’d like to own, you need to look at individual business’s locations, track records, and management. Ideally, you’ll want to find a business with a proven track record of profitability and a good location. However, management plays a vital part in the success of any business. Therefore, you need not necessarily rule out a business that doesn’t have the greatest track record. If you like the business and its location, better management could turn it around. Often times the right price and financing terms make this type of business profile the best opportunity for a buyer with limited capital.
Q: Why consult a Broker?
A: The sale of a business is a highly confidential matter for the seller. In order to protect the business as a going concern, that confidentiality must be preserved. Consequently, investors often find it difficult to locate businesses that are for sale. Business Brokers & Consultants represents businesses of all types and sizes. We can help you find the business that is right for you, provide you with the financial and operational data you need to make a well informed purchase, and lead you through the negotiation process. Our experience will not only save you time and effort, but money as well.
Q: What does Business Brokers & Consultants offer me as the buyer?
A: We can help you find the business you’re looking for, negotiate fair terms with the seller, and maintain confidentiality throughout the transaction.
We are experienced business owners as well as brokers. So, we understand the concerns of running a business and not just selling one. Our brokers work closely with you to help you identify the business that best suits your talents and needs. Plus, we guide you through the sea of legal and financial concerns which accompany the purchase of that business. Through a network of commercial and private lenders we will get you the money you need to finance the acquisition. Typically, we also obtain working capital for our buyers, to insure a smooth transition.
Q: How does the Buying Process work?
A: Simply contact us so that we can arrange a personal meeting. There is no obligation or fee involved. In this initial meeting we will discuss your needs and what type of business would best suite your requirements. We can answer any questions you may have about financing and the transition process.
Once we find a business you are interested in buying, we will help you put together a Purchase Agreement, obtain financing, and help facilitate the due diligence process.
Q: Why would someone sell a business that is doing well?
A: Most business owners are motivated to sell for reasons which have little or nothing to do with how much or how little money a business is making. The great majority are sold for personal reasons. These include things like illness, retirement, divorce, or perhaps even the plain and simple desire to do something different. One of the best measures of a business’s success is the length of time it has been in business. Generally, a business that is losing money consistently cannot survive for more than two or three years. On the other hand, most business owners will take advantage of every legally opportunity to reduce the taxes the business must pay. That is why it’s necessary to ascertain the total owner’s benefit in order to fully comprehend the financial health of the business.
Q: How do I determine what a business is really worth?
A: Three factors are considered in business valuation: fair market value of assets, ability to generate earnings, and Demand. See our article What is this Business Really Worth?
What is included when I list my Business for Sale?
- You can create your listing confidentially, and you may include as much information as you wish.
- Your listing will appear on both BusinessBroker.net. Double exposure for one low price!
- Very simple to add and manage your listing using your own online account. You can log-in at any time and manage your listing, check leads, page views, and revise your advertisement.
When selling my business, how long will it take me to sell it?
- It really depends on many factors – the type of business you are selling, location, price, time of year, condition of business – just to name a few. According to a recent survey done by Business Brokerage Press, the average time on the market was 12 months.
Does GABB charge additional commissions or fees if they help me find a buyer for one of my listings?
- Absolutely not. The one time advertising fee is all you ever have to pay, even if you sell your business using our service..
Can I advertise my business confidentially?
- Yes. When placing a listing simply leave out the company name and use general headers such as “Fast Growing Car Wash”, “Commercial Property For Sale”, or “Profitable Restaurant”. You also have the option to list the location of the business or property confidentially by placing “Not Disclosed” in this City field and you may also select the “Confidential” option in our State pull-down menu. This will make the location of your business or property 100% confidential. Additionally, your email address is also hidden behind the email contact form in your listings so nobody will see it. Please keep in mind, if you make the location of your business confidential, then it will not show up when someone does a search in that particular area – this will reduce the number of people viewing your ads and your leads.
How do I pay for this service?
- The only way to pay is by credit card. We accept Visa, MasterCard, Discover, and American Express. You input the credit card information while creating your listing online. Rest assured our network is safe and secure as the credit card information is encrypted (we use SSL server certificates).
Can I update or change my listing after I submit it to you?
- Yes! We give all of our advertisers an online administration account that they can login to at any time to update or manage their listing. This allows our clients to change asking prices, sales pitches, financial information, and any other information in their listing at their convenience. At the top of the BusinessBroker.net homepage you will find an “Account Login” link where you will access your administration account after your listing is taken live on our network.
Can bankrupt businesses, asset sales, or other types of commercial property be listed on GABB?
- Absolutely, we have a large number of these types of listings in our database and we have a large amount of traffic looking for these types of opportunities.
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