There are many reasons that prospective buyers search for new business opportunities: • Laid-off, fired, being transferred (or about to be any of them) • Early retirement (forced or not) • Job dissatisfaction • Desire for more control over their lives • Desire to do their own thing • Came into some money (like an inheritance) for productive use A Buyer Profile Buyer profiles have changed so dramatically over our 53-year history at WCI, that it would be difficult to articulate herein. We are now seeing people from every walk of life who desire to be their own boss and control there own destiny. For our more expensive listings, indicative of larger well-seasoned businesses with management layers, we are seeing more and more Family Office and Private Equity inquiries.

FAQs Archive - WCI Commercial Business Broker

Q: How long might it take to get my business sold?

As stated elsewhere on this site, selling is a process… not an event. Some studies indicate that it now takes, on average, about seven to ten months to sell a small business. This figure seems to creep-up yearly. Price, terms, and financing are big factors. It is very important not to overprice the business at the beginning of the sales process. A business will also sell most quickly if there is a reasonable down payment with the Seller carrying the balance – often in just a few months. Should a bank/lender get involved, often an extra 90 days gets added to the time-frame with far more work on the part of both Buyer and Seller. Having assembled all of the necessary due-diligence information, that will very likely be requested by the Buyer and the lender, can also greatly reduce the time period.

Q: What is my Business worth? How is it valued? Isn’t it true that my business is worth exactly what a buyer is willing to pay for it?

Getting to a value for your business will in large part be a function of tax return analysis, coupled with an interview with you to gain a comprehensive understanding of the workings of your company. We’ll walk you through the valuation process, and the role that will be played by a lender to your buyer. We find there is much wisdom in arranging face-to-face meetings wherein our prospective sellers come to our offices with copies of their most recent tax returns for their businesses. Your business is not like a share of stock – worth exactly what somebody else is willing to pay for it. Most business sales are bank financed (like homes.) Those lending banks have underwriting departments and hire business appraisers who will peg a value for your business. As you will learn in working with us, most business values relate to a multiple of Owner’s Cash Flow.