FAQ
Ask, Discover, & Understand
The time needed for sale depends on a great many factors including the price of your business, the type of business, and your willingness to finance the buyer. In general, it takes 120-240 days or longer to find a buyer for a business. The price and the terms you are offering are important factors. The more reasonably priced and the better the terms offered, the faster the sale. Your Accel Business Advisor can discuss with you how your business fits into these general guidelines.
We first market to our over 20,000 qualified buyers in our database. We advertise on several popular business listing sites (BizBuySell.com, CABB.org, Dealstream.com, Businessbroker.net, Bizquest.com, Bizben.com are a few examples) giving your business exposure to thousands of Internet users. We also conduct targeted mail and email campaigns to specific buyer groups based on the features of each listing
An astute buyer is going to structure the initial offer to ensure that they get the best possible price and terms from you. Therefore, you should expect to receive a "low" initial offer. Don't be offended - this is just an initial offer to "test the waters". If you are asking $400,000 for your business, a prudent buyer may offer $300,000 as the initial offer. The buyer does not expect you to take the initial offer, nor should you expect the buyer to accept your initial counter-offer. All offers that you receive will have some contingencies. Generally, these contingencies concern review of the financial information, obtaining a satisfactory lease and agreement on a training and transition period. Other contingencies specific to your business may be included. Contingencies are normal and provide the buyer with the ability to "check out" the business before closing.
If you are willing to provide seller financing, it may speed up the transaction. The escrow company will prepare a promissory note, a security agreement and will file a UCC-1 financing statement with the appropriate local and state agencies. It is much like financing a car—your lien will be recorded in the public records, and the assets listed on the UCC-1 cannot be legally sold or refinanced without your permission. Should the buyer sell the assets without your permission, it would be a felony offense
Generally, you will be expected to provide two weeks to two months training in the business with an equal time of telephone consultation. Remember, you still have an investment in the business, so properly training the buyer is in your best interest.
Yes. Generally, the non-compete agreement covers the area from which your current customers are generated, and the time period usually equals the term of the financing you are providing to the buyer. For example, if your customers come from a three-mile radius of your business and you are providing the buyer with a five-year loan, you will be asked to sign a non-compete for a five-year period covering a three-mile radius from your business. If no seller’s financing is provided, the term of the non-compete agreement is usually three to five years.
Although it sounds cruel, our considerable experience has proven that it is best to tell your employees about the sale after the sale is complete. Of course, if there is an employee whose expertise will be needed after the sale, you should introduce the buyer to this employee shortly before closing. Your Accel intermediary can assist you in determining the timing for notifying employees.
No. We sometimes ask for a personal financial statement from the buyer, but we do not verify the information submitted. We do not run credit reports on buyers. It is your responsibility to do whatever you feel is appropriate regarding qualifying the buyer
Remember that a negotiated deal is a deal that will close. Do not become offended by what you consider to be a “low” offer. Counter all offers on a timely basis.
