Selling a business
Discussion
you need to be careful
Don't pay big up front fees
Don't be seduced by people giving you huge valuations
Make sure that you are going to get a full service (not only marketing the business but also help with preparing information, advice on the offers received, tax advice - basically someone who will hold your hand throughout.
I have lost count of the times I have dealt with a seller using a "broker" who charges a big up front fee and basically puts together a mail shot and a two page summary and then sits back and waits for his success fee
My advice - go on to the website of the institute of chartered accountants and use their directory to find a couple of local firms with corporate finance departments and have a chat with them
Don't pay big up front fees
Don't be seduced by people giving you huge valuations
Make sure that you are going to get a full service (not only marketing the business but also help with preparing information, advice on the offers received, tax advice - basically someone who will hold your hand throughout.
I have lost count of the times I have dealt with a seller using a "broker" who charges a big up front fee and basically puts together a mail shot and a two page summary and then sits back and waits for his success fee
My advice - go on to the website of the institute of chartered accountants and use their directory to find a couple of local firms with corporate finance departments and have a chat with them
groomi said:
FUBAR said:
Nevin said:
groomi said:
I think Screbbe64 deals in selling businesses.
Yep, I'm pretty sure he does too. Will wait for him to toddle along
broker/corporate financiers or good accountants.
if you can identify 10 people who might buy your business then a broker might be unnecessary.
depends on how much you want to get involved in the negotiations. difficult to say which way is best because some people are more than happy to pay a broker rather than get stuck in, whereas some pay for a broker and still end up doing all the work because they can't let go.
what sort of business is it?
if you can identify 10 people who might buy your business then a broker might be unnecessary.
depends on how much you want to get involved in the negotiations. difficult to say which way is best because some people are more than happy to pay a broker rather than get stuck in, whereas some pay for a broker and still end up doing all the work because they can't let go.
what sort of business is it?
therealpigdog said:
broker/corporate financiers or good accountants.
?
A corporate financier is not a broker.?
A corporate financier/accountant who knows what he is doing will do the lot for you (put together a prospecting list, make the approaches,produce a decent information memorandum,set up and run a tight auction process, sift the offers and assess them, manage any due diligence process, liase with all sides and make sure that the deal is as tax efficient for you as possible) and generally act as a buffer between seller and buyer.
In my experience, most brokers will produce a prospecting list and make the approaches and little else. They won't/can't offer much else.
Massive generalisation - but brokers just don't tend to offer the full service. No problem with that - horses for courses but their fees don't bear out the service that they provide.
In the end, it really depends on the value of the business. Big 4 accountancy firms have big fees and it needs to be a sizeable business to justify their fees.
Local and regional firms will be more reasonable on fees.
I also have a company for sale (Loans and Mortgages) up with a broker who has been absolutely useless. The business is for sale at 225k (they valued at 350k, which i thought was unrealistic).
The 2 prospects I have had have been emailed to me to deal with directly and after an initial conversation I have asked the broker to follow up which they will not do. 'You are the best person to sell yor business' - why would I be paying them 25k just to list the business on businessforsale.com which I could do for a few hundred pounds.
I made sure that I did'nt pay any up front fees, but I dont feel they are proactive enough. In my opinion they should be calling similar business' and offering my business for sale....
The 2 prospects I have had have been emailed to me to deal with directly and after an initial conversation I have asked the broker to follow up which they will not do. 'You are the best person to sell yor business' - why would I be paying them 25k just to list the business on businessforsale.com which I could do for a few hundred pounds.
I made sure that I did'nt pay any up front fees, but I dont feel they are proactive enough. In my opinion they should be calling similar business' and offering my business for sale....
Nihao - and greetings from Beijing (where I'm pulling off a real peach of a deal!)
I got your text Nick, hence this post.
To the OP, firstly what sector are you - certain sectors are 'hot to trot' and others aren't. Hot sectors include: bio-tech, power generation, environmental, business-to-business, Internet related, and a few others. Secondly, we're currently only interested in companies/deals above a certain size. However, in answer to the original question I'd be very happy to meet for a couple of hours to give you some free cpnsultancy as a 'PH goodwill gesture' (as long as I don't have to travel too far!)
I got your text Nick, hence this post.
To the OP, firstly what sector are you - certain sectors are 'hot to trot' and others aren't. Hot sectors include: bio-tech, power generation, environmental, business-to-business, Internet related, and a few others. Secondly, we're currently only interested in companies/deals above a certain size. However, in answer to the original question I'd be very happy to meet for a couple of hours to give you some free cpnsultancy as a 'PH goodwill gesture' (as long as I don't have to travel too far!)
Crickey Steve, you're either in the Christmas spirit....Gassing Station | Business | Top of Page | What's New | My Stuff