FAQ (Frequently Asked Questions)
Q: How do I sell my business without anyone finding out?
A: The first contact Hamlar Business Broker makes with the potential market of buyers for your business is via a blind (anonymous) one-page profile of your company. The location and details of your company are described in general terms. Key financials and a description of your products and services are presented, along with a short list of salient growth opportunities. Your company is not identified in the one-page profile.
The next piece of information a prospective buyer receives is delivered only after he/she signs a binding confidentiality agreement (Buyer Non-Disclosure Agreement). Additionally, your employees are not notified that you are selling your business until you are ready to do so. This communication is at your sole discretion.
Q: Can I engage your firm to sell my company without having a valuation done first?
A: Yes. Hamlar Business Broker will give you an idea of value before we accept your project to ensure your expectations are realistic. Simply complete our confidential, FREE evaluation form, and we will contact you within a few days to discuss the value of your business.
Q: Should I ask my accountant to find a buyer for my company?
A: While your accountant is an important advisor, he/she will not be an expert in marketing companies, creating a competitive auction for your company, or negotating the most favorable terms on your behalf.
Q: Will my company be attractive to a public company?
A: Possibly. Approximately one out of every four of our transactions are completed with public companies.
Q: How long should a firm hold an exclusive listing of my company?
A: One year maximum. In most cases, a competent brokerage firm should be able to sell your company successfully within a year.
Q: Will a valuation sell my business at the highest price?
A: No. You will only know that you have received the best possible offer for your company if you have multiple, simultaneous offers. Offers result from generating buyer excitement with a striking print presentation and dynamic promotional material of your company’s unique strengths and future promise. These marketing tools enable us to obtain the highest price for your company by creating a competitive bidding process.
Q: Do buyers buy private companies based on EBITDA, PE or Price vs. Book Value?
A: Generally buyers determine a company's prospects on the basis of recent results, growth opportunities, overall company quality, as well as on a multiple of EBITDA common for that industry at the time of sale. PE is not a relevant metric for valuing private companies, and book value is not an accurate reflection of a business' worth in the marketplace.
1) Our customized, broad-based marketing system produces a diverse pool of potential strategic and financial buyers for each of our clients; and
2) We do not accept engagements from clients with unrealistic value expectations.
Q: What are the most common reasons that a deal doesn’t close?
A: The number one reason a transaction is not completed is weakening financial performance. If the financial performance of a seller is off materially from the original forecast, the business loses value. Therefore, we always emphasize to sellers how important it is to stay on top of their business and to continue to actively grow it as if they’ll continue to own it for another couple of years.
The number two reason deals fall apart is surprises popping up in due diligence. We work with both parties to ensure all relevant business issues are disclosed up-front. Surprises lead to lack of trust, and lack of trust kills deals.
Q: When I sell my company do I also sell the property it occupies, or would I lease the land and/or buildings to the acquirer?
A: Either way is possible. You may receive offers for just the business with rental income to you, as well as offers to purchase the business along with the real estate. You can choose whichever option you prefer.
Q: What is the typical post-sale management transition arrangement?
A: The current owner typically stays on for a period of time to ensure a smooth transition, or longer depending on the structure of the deal. The former owner’s compensation is negotiated based on the buyer’s estimate of what would they need to pay someone in the market to replace you.
Q: Where will the closing take place?
A: This depends on the attorneys involved; however, most closings these days are done by wire transfer. Signature sheets are faxed to both parties after review by attorneys. After both sides have signed all necessary documents, the funds are electronically wired to your bank account.