We generally need a three year high level profit and loss statement as well and current year to date financial results. In addition a list of your domains, and a few operational as well as competitive related questions. This information should not take you more than about 30 minutes to develop.
The average business sells within 4-5 months. This will vary by industry. We have seen businesses sell in as quick as 2 weeks to well over a year. For more information on our sales process please check out our 10 Step Sales Process here.
Every buyer should perform a complete due diligence on any business they will potentially purchase. The due diligence process should include a review of merchant account statements, bank statements, supplier costs as well as tax returns. The key is to trace the cash from the merchant account to the P&L. Your CPA will help you develop an effective review process.
Due to the amount of time it takes to procure a buyer and move each business through the sales process, we cannot accept a shorter contract length than 6 months. For more information on our sales process please check out our 10 Step Sales Process here.
Buyers are looking to validate the accuracy of all significant information provided. This validation will typically include a review of merchant account statements, bank statements, a statistically sampling of supplier invoices, tax returns, 1099 and W-2 statements, supplier contracts, credit card statements for business expenses, etc.
It usually depends on the desire of the buyer. The larger the price of the transaction the more likely it is that a face to face meeting will take place prior to the closing. Generally most interaction between buyer and seller is via conference call and email communication. The broker will facilitate all such communication.
Acquisitions Direct is totally performance based. We are only paid when we sell your business at the asking price, or at a lower price if you choose to accept it. There are no upfront fees charged for our services.
This depends on the complexity of the business and the industry. Our brokers will only schedule conference calls with qualified buyers.
Most sellers will require a seller financing of 10 to 20% of the transaction price. We strive to obtain as much cash at close as possible to the seller.
It depends on the financial history of the business as well as the financial strength of the buyer. Generally if the business has consistent, ideally growing sales and profitability for the last three years and the buyer has a decent FICO score then there is a strong likelihood SBA financing can be obtained. It does however depend on the specific SBA Preferred Lender used by the buyer.
No, we do not accept all listings. Some brokers will take all listings but strategically Acquisitions Direct will only take quality listings. We do however take distressed listings from time to time where that distressed business appears to have potential to be turned around by the right buyer. Our firm is noted for offering quality businesses which is substantiated by our high close rate.
The price determined for what to list your business for is calculated during the business valuation process. There are multiple factors that go into driving the valuation with the major ones being revenue & profit history, current year financials, specific industry focus, anticipated market demand for that business, and current business infrastructure in place including weekly effort required for new owner to effectively manage this business. Click here to get a free valuation.