Selling or Buying a Business? Top 5 FAQs Answered by Comelli Commercial
5 Frequently Asked Questions on Selling and Buying Businesses with Comelli Commercial
Navigating the world of commercial property and business sales can be complex. It's natural to have questions, especially when considering the sale or purchase of a business. Here, we've addressed some of the most frequently asked questions that come our way at Comelli Commercial.
1. What is my business worth?
Valuing a business involves a meticulous analysis of various factors including financials, assets, liabilities, and operational procedures. However, despite all these analytics, the crux often boils down to what a buyer is willing to pay. At Comelli Commercial, we've seen multiple offers for businesses, which offers invaluable market feedback. If you're a genuine seller, considering this feedback can be crucial.
2. How does a seller determine their business's sale price?
Surprisingly, many business owners arrive at a sale price based on their perceived value of their time or the business itself. Unfortunately, this approach may overlook important aspects such as the business's financials, assets, liabilities, operational details, and market comparisons. This could lead to unrealistic pricing, causing the business to linger unsold for prolonged periods.
3. My business records aren't entirely accurate. Will this impact the sale price?
Absolutely. If there are noticeable discrepancies or gaps in your financial records, potential buyers may become suspicious or mistrustful. A business with clear, consistent, and tidy bookkeeping generally commands a higher price. Fortunately, there's user-friendly software available that can make maintaining immaculate records a breeze.
4. Does a business being up for sale indicate something's wrong with it?
This is a common misconception. In reality, business owners sell their businesses for a myriad of reasons. Some might be facing health challenges, looking to retire, wanting to explore the world, consolidating other ventures, or considering a shift to a new industry. A sale doesn't necessarily signify a problem with the business.
5. Will the current owner help train me?
Many new business owners may feel daunted by the prospect of taking over, even if they bring a wealth of life experience to the table. However, there's a silver lining. At Comelli Commercial, every contract we facilitate includes a mandatory training period as a condition of sale. This ensures the outgoing owner is legally obligated to guide and train the new proprietor, ensuring a smooth transition.
Considering selling or buying a business? It's essential to be informed and have a trustworthy partner to guide you through the process. Comelli Commercial is here to help. Let's make your business journey a success together!