Business Selling FAQ

business selling FAQ

Question:

Let's say that we decide to meet, what will you review in our first meeting?

Answer:

We can meet at your convenience and at any location you choose. We give you this option to maintain maximum confidentiality.

We will review the following during our initial meeting:

  • introduce The Novars Group
  • review your key objectives
  • summarize the business transfer process
  • discuss the importance of a business valuation to derive market value
  • discuss how we will package your business to present to prospective buyers
  • review how we list your business on our local and national networks
  • review our confidentially process and policy
  • discuss the buyer screening process
  • review our role as your agent and our agency guidelines
  • address any other issues or concerns

You are under no obligation when we meet. We simply present our credentials and determine if we are the right people to represent your interests.

If you would like to wait a season, we can contact you then. If you would like to move quickly, we can move you to priority status with personalized attention.

top of page

business selling FAQ

Question:

Why should I use a business M&A advisor and more importantly, The CFOne Group?

Answer:

If you are thinking of selling your business, here are some questions you need to address:

  • what price do I ask?
  • how do I determine the exact value of my business considering my assets, market and goodwill?
  • what information do I need to provide and how should it be presented?
  • what steps do I need to take to properly present my business for sale?
  • where do I list the business for sale to get maximum exposure without jeopardizing my employees or competitive position?
  • how do I find, qualify and screen buyers?
  • when will I need a lawyer, accountant, or other outside professional?
  • how will I continue to manage the business while the business sale is underway?
  • how do I keep the business sale confidential?

These are highly critical decisions. Failing to properly manage the sale of your business can cost you. That is why you turn to professional M&A advisors like The Novars Group.

Why The Novars Group?

We are professional M&A advisors who can:

  • valuate your business to achieve "Fair Market Price"
  • professionally package your company to present it to potential buyers

    this package will include summary of the business operations, market and financial — including a highly recommended third party business valuation

  • interview and screen potential buyers — ensuring that you reach able buyers
  • act as your agent for the sale — thus keeping you focused on the day-to-day operations
  • coordinate the due diligence review on your behalf
  • negotiate the price that works for seller and buyer — keeping your interest in the forefront

All of our affiliates and cooperating advisors:

  • follow standardized practices and procedures that are proven to deliver results and yet maintain your confidentiality
  • use a proven effective system for successfully marketing your businesses to get to the desired result as quickly as possible
  • develop a Confidential Marketing Memorandum that is very detailed, well organized, and impressive to critical and analytical buyers
  • coordinate efforts focused on selling businesses all across the country, with no problems understanding a business being offered, even if it is hundreds of miles away from our own office
  • develop a marketing package that effectively and persuasively answers nearly every question a buyer will have when choosing between many competing options in the business marketplace

And most importantly:

  • Novars Group is an affiliate member of the Business Broker Network™ and the International Business Brokers Association
  • our affiliation allows us access to the world's largest network of prospective buyers from all over the nation
  • our network includes other affiliate networks nationwide

this means maximum exposure for your business at the best possible price

top of page

business selling FAQ

Question:

How do I determine the price for my business?

Answer:

Price can be an arbitrary number. The seller wants Z+1. The buyer wants Z-1. Our goal is to present a price that brings the maximum value for the seller.

Coming up with price generally starts with the books. You have sales & profits, assets, customers, marketing goodwill, and most importantly, personal knowledge and "equity sweat" over the many years you have built your company.

Unfortunately, the books from most small business do not reflect these values. The financial statements were prepared for tax reporting purposes, which reflect depreciated assets, economic allowances, and values that report low income.

So your first step is completing a "Fair Market Valuation" from an independent third party. This valuation:

  • recasts depreciated assets
  • adds back one-time tax allowances
  • adds back discretionary income
  • analyzes economic and marketing goodwill
  • other review

The objective is to re-valuate your current market value to reflect an increase in assets and equity. This valuation allows you to set a price that will be less disputed by prospective buyers.

The Novars Group works exclusively with a National Valuation Services company that has been evaluating businesses for over 20 years. We use their tested and proven model to assemble the data required to begin the process.

Give us a call to discuss:

CFOne Advisory Group

1.571.306.3590 (DC)

1.804.527.1103 (Richmond)

or e-mail your questions to:
info@cfone.com

top of page

business selling FAQ

Question:

How do I list my business for sale?

Answer:

Once we complete our Confidential Memorandum Report — which summarizes your business operations, markets and financial reports in a professional layout — we will list your business on the following networks:

  1. working in our network of business brokers nationwide representing individual buyers, investment groups, companies looking for expansion opportunities, and other qualified and screened buyers.
  2. working in our membership with online listing services that cover the expansive internet network of prospective buyers
  3. screening and maintaining buyers who contact us via our own internal marketing networks
  4. by listing your business in respective off-line media both locally and nationally, as needed

In addition, we can:

  • target specific companies or competitors who may have an interest in your business (under complete confidentiality)
  • contact equity companies that invest in business ownership with respective management teams.
  • other: as directed by you

These networks combined will give your business national exposure unlike any other network. This means potentially more buyers looking at your business. More buyers means a better price.

In addition to the networks listed above, we will list your business through print media such as the Wall Street Journal, local and regional papers when necessary.

In other words, we have you covered.

CFOne Advisory Group

1.571.306.3590 (DC)

1.804.527.1103 (Richmond)

or e-mail your questions to:
info@cfone.com

top of page

business selling FAQ

Question:

How do I keep my employees and competition from hearing about my plans?

Answer:

That last thing you need when deciding to sell is unwanted publicity. Your decision to sell must be kept confidential to protect you and the buyer. Reasons:

  • Knowledge of a potential sale can send some of your key employees packing:
    that is not good for you if the sale doesn't go through. And it is especially bad for the buyer, who may walk away or negotiate a lower price if key personnel skills are lost

    It is imperative that the knowledge of the sale occur only when necessary to minimize fear and defection among employees
  • Protect your competitive position:
    what would be your competitors reaction if they heard your were about to sale. Would they go after your customers? Most likely!
    Would they hit the market with unfavorable advertising to scare away future deals — is a probability.

    Again, you want to protect yourself and the buyer from any negative impact that can devalue your position

There are many other reasons why you want to keep this quiet until necessary. So our policy is to keep everything under raps.

When we meet, we announce our presence as business consultants. No one needs to know why we are meeting. All communications and materials are kept confidential. We never list the name or address location of the business on our networks. And prospective buyer only find out your name and business when you give us written consent to do so

So be assured. Everything will be maintained under the strictest confidentiality guidelines. Period.

top of page

empty column

Helpful Tools

Some helpful forms business owners:

exit planning module
selling your business summary sheet
valuation calculators