Frequently Asked Questions
With Answers From Business Brokerage Experts
Our experts at Ryco Advisors have the answers to your most important questions about our business brokerage services and processes. Below are a set of frequently asked questions organized by specific categories. Click on the service that applies to you and read our answers to those questions.
Sell a Business
What is my business worth?
Should I hire a business broker to sell my business?
What is the process of selling my business?
1. Define Goals and Objectives: Meetings to determine the seller’s objectives so that we tailor our services and focus our efforts to the needs and goals of the seller.
2. Collect Information: Prior to launching a sale process, our advisors will thoroughly analyze company business data and historical financials in order to gain an in-depth understanding of the operation. Proper preparation is crucial for the best presentation of the business to prospective buyers.
3. Valuation: Based on the review of the financials and operation, as well as an evaluation of comparable transactions, we will work with the seller to determine an appropriate asking price. An appropriate valuation minimizes the risk of losing a timely sale by overpricing the business or of leaving money on the table by undervaluing the business.
4. Marketing Material Preparation: We prepare a comprehensive set of marketing materials to share with prospective buyers. It is of the utmost importance that the business be properly packaged with all facts organized and consistently presented. This ensures presentation in the most favorable light while educating buyers and maximizing valuation. During this stage, we also reach out to our network of banks to prequalify business for SBA financing, if applicable.
5. Buyer Identification, Listing and Outbound Marketing: We will determine the most likely type of buyer and best marketing strategy for the business. We confidentially reach out to pre-identified buyers in our network as and place the confidential business listing on partnered websites. Our goal is to provide the maximum exposure to qualified buyers while also maintaining confidentiality.
6. Prospective Buyer Screening Process: Ryco thoroughly screens all prospective buyers to ensure that they are qualified and executes confidentiality agreements with any buyer who wishes to receive additional information. We share and initial set of confidential marketing materials with qualified buyers and field all prospective follow-up questions and data requests.
7. Deal Negotiation and Buyer Diligence: We negotiate key deal terms and ensure that they are formalized in a Letter of Intent or Term Sheet. The buyer will usually have a due diligence period in which they verify the accuracy of the information provided by the seller. We manage the process of ensure that all diligence requests are satisfied.
8. Deal Execution: We facilitate the necessary steps to ensure that the deal is successfully consummated, including contract drafting and negotiation. Ryco ensures that all parties at the closing table are working together and keeping focused on timeline.
9. Post-Closing Transition Period: The seller generally agrees to assist the buyer for a negotiated period of time in order to ensure a seamless transition.
Buy a Business
Why is due diligence important when buying a business?
What should I pay for the business I am buying?
Why should I buy a business as opposed to building my own?
Should I use a business broker when buying a business?
Do I need an exit strategy for my business?
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