Frequently Asked Questions
Q. What is my business worth?
A. That will depend on several factors. First it needs to be determined if your business is making a profit or not. If it is not profitable, that is, the total sales or income minus all expenses, does not generate a net cash flow, the business worth will be valued by its tangible assets, such as the equipment, tenant improvements, rent cost, current lease terms and location. A value far less than a profitable business.
If the business is showing a profit and can be substantiated by financials such as, profit and loss statements, bank statements and tax returns, the value will be determined by how much profit there is, along with other factors, such as; length of time in business, past growth and future potential, current market trends, lease terms and location, to mention a few.
Q. What kind of financials do I need to show a buyer?
A. Basically, any and all information that will support income, expenses and profit, i.e. sales receipts, bank statements, profit and loss statements, invoices and tax returns.
Q. What about “off the books” cash transactions?
A. What ever the seller says or claims as income, needs to be substantiated to the buyer’s satisfaction. Unsubstantiated income should not be included when determining net profit. It is the seller’s responsibility to disclose any and all income to governmental agencies and YBB does not verify or confirm “off the books” transactions.
Q. How do I keep it confidential from my employees?
A. Potential buyers are required to sign a “Confidentially Agreement” or “Non Disclosure Agreement”, before receiving the business address, which the Buyer agrees to visit as a customer, and only to observe not to “snoop” or ask questions of the owner or the employees. However, Your Biz Brokers cannot guarantee that your employees and/or customers will not find out that the business is for sale, however, we will make every effort to keep the transaction confidential.
Q. How will you find a buyer?
A. Modern technology has enabled us to literally reach buyers from all around the world via the Internet. We are able to custom build a web page for your specific business, allowing us to advertise with photos and voice over, along with written copy for buyers to preview. In addition to our website www.yourbizbrokers.com these “listings” are then posted on other major websites that specialize in business sales. We also use social networks, like Facebook and Twitter to contact potential buyers looking to buy a business.
For additional questions, please feel free to contact “Your Biz Brokers.”