A business needs capital to purchase equipment and supplies. It also needs working capital to bridge the gap between when it needs to pay its bills and when customers pay their invoices.
There are many benefits to working with a professional capital business brokerage to represent your business when the time comes to sell the business you have spent years or even decades building, the below few benefits are the key reasons to consider professional representation to maximize the value of your business.
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1. Protect Confidentiality
One of the most important aspects of listing your business for sale is maintaining confidentiality throughout the entire process.
If customers, suppliers, employees, or competitors learn the business is for sale it may be detrimental to the business through decreased sales, changes to purchasing agreements, increased employee turnover, or new threats from competition.
Once the business is listed for sale, all potential buyers execute a confidentiality and non-disclosure agreement before learning specific details about the business.
2. Buyer Qualification Process
The buyer qualification process is an additional step we take upfront when a potential buyer expresses interest in a business for sale listing.
This process includes an interview with the potential buyer to qualify them both financially and based on professional experience.
The financial qualification step makes sure the potential buyer has the ability to qualify for the funding necessary to complete the transaction including money available for a down payment, credit score to qualify for any loans, and liquidity for working capital to operate the business post-closing.