Your questions, answered
We help make the process of preparing, growing, and selling your business simple. Here are the most common inquiries we receive.
What does the service cost?
It depends on the size and complexity of your business but our fees are broken down by stage of the deal. We start with a free introduction valuation to ensure it makes sense to begin working together on a paid basis.
If I don’t want my staff to know the business is for sale, how do you market the opportunity?
This is actually the approach we recommend. The business is marketed confidentially by using non-identifying factors of the business to attract interest. From there, only parties willing to sign a non-disclosure agreement, as well as provide their economic capacity, will be provided with the company name and details.
Have you sold a business in my space before?
Most likely! If not, it’s almost guaranteed that one of our colleagues in the OpnRoad Network has. In this case, we would either lean on, partner, or refer the work to the network—and we promise that this will be communicated transparently.
How long does the sales process take?
This depends on a variety of factors, but usually between 4-9 months. If we don’t think your business can be sold in that timeframe, we will work with you to identify the reasons why and connect you with folks that can help.
How do you determine if my business is ready to be sold?
We’ll run your business through a set of 14 risk-related questions, which is part of the free introductory valuation, and provide feedback related to your business’ readiness.
How do you ensure we get the best price for the business?
In simple terms, we generate competition. Through getting to know your business during the valuation and listing preparation stages, we will identify not only the best way to position your business for sale, but also the ideal buyer. Then, we’ll find as many of them as possible with the intent of creating an auction-style process which is proven to drive the price up.
We’ve been approached by a private equity group interested in buying our business. Now what?
First of all, this happens all of the time. Private equity groups have become more aggressive in recent years with outbound efforts and they are hoping to look at as many businesses as possible. If you think they’re serious and you’re interested, give us a call. At the very least we can run you through our free valuation to see if the number is reasonable. As far as deal terms and negotiations go, we’re happy to get engaged.
My friend’s business sold for 5X profit. Can I expect that too?
As much as we’d love it to be that simple, it isn’t. Businesses are dynamic. We’ve broken down the sellability factors for each business down into three categories: risk, growth, and documentation.
My friend’s business sold but she had to offer vendor financing. What is that and will I have to offer it as well?
Vendor financing, also known as vendor take-backs (VTBs), are a type of loan for the buyer. Instead of their lender being a bank, it’s the seller. It is written into the legally binding share purchase agreement that the buyer will pay the vendor back at agreed upon intervals and interest rate.
VTBs are becoming more common, especially when banks are involved. Typically the lender that the purchaser has chosen is not familiar with the business. This means that in order for the lender to feel comfortable lending, they want to see some of the vendor’s skin in the game for post-close.
Again, like most deal terms, it depends on factors like the quality of business, deal terms, and the strength of the buyer.
My friend’s business sold but he had to offer one year of training to the new owner. Is that standard?
It depends on the complexity of the business, what the current owner’s role is, and how well their processes are documented. For a business where the owner is playing an active role in the company, one year is fairly standard.
How do you find the buyers?
Once we’ve determined the various types of buyers that will have interest in the company, we then source buyers through methods like paid online databases, industry associations, and our own M&A network. There is no one-size-fits-all approach; it depends on the business in question.
I had a valuation done a couple of years ago, can we just use that?
No. First of all, in order to represent our clients at the level we expect of ourselves and you expect of us, we need to know the business intimately. Performing a valuation is a key piece of that. Second, a business valuation is based on a fixed point in time. Not only do the financial metrics of the business change frequently but so do market conditions when considering competition, supply chains, macroeconomic conditions, etc.
I’m interested in buying a business. What services do you offer?
We sell businesses, so we may have something for you! If you’re looking to hire a firm to help in your search for the ideal business, we’re happy to make some introductions but it is not something we currently focus on; we gear our services towards the selling versus buying side.
If you refer me to another professional service provider (accountant, lawyer, wealth planner, etc) do you receive a referral fee?
Nope, never. We are 100% focused on having our interests align with yours and accepting referral fees does not help us achieve that.
What can I do to help sell my business?
#1: Put the pedal to the metal and make sure your business is performing well. Selling a business in decline is tough sledding. In addition, once we’re working together, we have a 1-hour course for you, which discusses the process from start to finish. Completing this would be a big help.