1. How do you value my business for sale?
In many cases, the true valuation is only worth what someone is prepared to pay for it or for what the seller is only prepared to sell for. However we follow various industry guidelines to establish a value that is right for the market at that time, whilst also considering a number of business factors that would influence the value. See our section on valuing your business
2. How will I remain anonymous when selling my business?
At Foster Bushell we recognise that many business owners who are selling their business like to remain anonymous until a serious buyer is found. This way the competition, employees, suppliers and customers are not aware of the desire during this sensitive process.
The marketing of your business for sale is confidential and at a level agreed with you. No details of your actual business, even the name, are disclosed until the prospective buyer has signed a confidentiality agreement and we have vetted them on your behalf.
3. How do I choose the right advisors to help me sell my business?
Good advisers are essential for an effective sale and the right advisers can have a big impact on the success of your sale.
By working with us at Foster Bushell we ensure that you receive the right professional advice at the right time. In addition to our service, you will need an accountant and a solicitor. The accountant concentrates on the financial aspects of the sale, such as preparing accounts for the business. The solicitor focuses on legal issues such as drafting a sale agreement. You may also need to use a specialist tax adviser to handle business and personal tax planning.
We work with a number of these professionals and can help point you in the right direction.
4. How long does it take to sell?
This depends on the market conditions and what is for sale. However, on average a business sale takes between six to eight months from start to finish, although you should allow a full year. In most cases we are talking to the eventual purchaser within the first few months.
5. What will it cost me to sell my business?
Our fees and commission are always agreed with clients in advance and will be clearly confirmed in writing. The amount of any fee or percentage based commission depends on a number of factors, for example the valuation and the level of marketing. We cover these issues in our initial FREE confidential meeting with no obligation.
Other costs that may need to be considered when selling your business are legal costs, taxation liabilities, accountant, financial fees, stocktaker, landlord if the business operated from a leasehold premises. At Foster Bushell we help to assess these type of costs to ensure that you have no surprises during the process.
6. What documentation will a potential buyer want to see?
As part of your preparation for sale, it is a good idea to have all your systems, accounts and paperwork up to date. The buyer or their representatives will want to see Statutory Accounts, Management Accounts, VAT and Tax returns, Cash-Flow Statements, the Fixed Asset Register etc. From the legal side of matters they will want to see just about anything that you have contractually or legally entered, so have prepared copies of loan/HP agreements, leases, contracts of employments, salary details, etc.
The general view is that whatever it takes to satisfy the enquiries of the prospective buyer, but within reason!
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