As Sunbelt of Chattanooga begins the process of selling your business, there are certain things you can do to help us:

• Keep normal working hours.

• Make sure your financial records are an accurate reflection of revenues, business expenses and assets/liability levels.

• Conduct business as usual. Do not let inventory levels dip below normal.

• Keep the business clean and in good repair.

• Remove equipment or furniture that is not part of the sale.

• Provide us with required information in a timely manner.

• Be as accommodating as possible in setting appointments to meet with buyers.

Your Sunbelt of Chattanooga broker will typically recommend that you retain an independent valuation firm to assist you in determining the value of your business and establishing an asking price. Your broker will explain the costs and benefits of the independent valuation process during your initial meeting. Learn more about the business valuation process by clicking here.

As a member of the largest business broker network in the world, Sunbelt of Chattanooga has experience in developing an effective process to sell a business to prospective buyers. Sunbelt of Chattanooga brokers typically adhere to a 10-step process in managing business sales transaction; however, your broker may modify this process based upon the nature of your business or local market conditions. When you meet with one of our business brokers, he or she will be delighted to provide you with a detailed explanation of the entire marketing process.

We first market your business to our large database of qualified buyers. To sell a business, we advertise on the Internet, via the Sunbelt website and several other business listing websites, giving your business exposure to thousands of potential buyers. Since Sunbelt has approximately 325 offices and more than 1,400 brokers worldwide, your business will have broad exposure. Many buyers will relocate for the right business. We may run "blind" advertisements in the classified section of the local newspaper. To ensure your confidentiality, all marketing excludes any specific identifying information on your business.

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. This is normally just an initial offer to "test the waters." It's the first step in the negotiation of an appropriate purchase price for your business. All offers will contain some important contingencies, including review of the financial books and records of the business, obtaining a satisfactory lease and agreement on training and transition periods. Other contingencies specific to your business may also be included. Contingencies are normal and provide the buyer with the opportunity to verify the information presented in the marketing materials.

There are many factors (i.e. asking price, the buyer’s ability to secure financing for the purchase of the business, the business’ location, local economic conditions, the nature of the business) affecting the length of time it takes to sell a business. Consequently, there are wide variations in the amount of time required to sell a business (in some cases weeks or years). That said, a selling period of six to nine months would be average.

No. We usually ask for a personal financial statement from the buyer, but we do not verify that the information submitted is correct. If you desire, we can run a credit report on the buyer, as long as the buyer consents and pays a modest fee. Other than the credit check, it is your responsibility to do whatever you feel is appropriate regarding qualifying the buyer. If you are financing a substantial part of the purchase price, you should verify income and asset and liability information as carefully as a bank would. We have some SBA forms that will help you accumulate the necessary financial information about the buyer.

The closing escrow agent can prepare a promissory note, a security agreement and will file a UCC-1 financing statement with the appropriate state and local agencies. It is much like financing a car - the lien can be recorded in the public records and the assets listed on the UCC-1 can not be legally sold or refinanced without your permission.

Buyers do not typically pledge additional collateral for your loan. When a buyer buys a business, he/she does so based on the business being able to generate sufficient cash flow to pay your loan and provide him/her with an income to meet their needs. When you ask for additional collateral, you are sending a negative message to the buyer: the buyer has paid too much for your business and the business will not generate enough cash flow to pay your loan and provide adequate cash flow to the buyer.

Generally, you will be expected to provide two to four weeks of training in the business with equal time of telephone consultation. Remember, if you are financing any portion of the purchase price, you still have a financial interest 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 commonly is one to two years.

Although it sounds harsh, our considerable experience has proven that it is best to tell your employees about the sale immediately before or immediately 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 Sunbelt of Chattanooga business broker can assist you in determining the timing for notifying employees.

Sunbelt of Chattanooga broker’s commissions will be in the range of 10% of the business’ sales price (subject to a minimum fee of $12,000 to $15,000) and will be contingent upon the successful sale of the business. You can discuss specific terms and conditions with your Sunbelt business broker.

With nearly 300 offices around the world, Sunbelt of Chattanooga operates in your area. Please contact us for professional assistance to sell a business.