Frequently Asked Questions
MYTH NUMBER ONE ..... No-one will want my business!
- The fact is - for every business that is listed, there are at least 5 people looking to buy a similar business.
MYTH NUMBER TWO.... Buyers don't understand the true worth of my business!
|Buyers are usually educated and knowledgeable regarding businesses, but each may have different reasons for their interest. One may just require the assets to expand their business; another may think it is strategic to their future goals. Each buyer has their own idea regarding the value of your business.|
MYTH NUMBER THREE.... I just need to find that one buyer!
|True - but unrealistic! A seller needs to be prepared to sell with realistic expectations and supporting documentation that will meet the buyer's requirements. |
MYTH NUMBER FOUR.... The business is doing well - I don't need to sell!
- The best time to sell your business is when you can present a track record of growth and ever increasing profits, to the potential buyer. Some owners don't sell because they are concerned regarding what they will do next. Depending on the nature of your business, management contracts may be a viable way to stay involved and help the new owner meet future goals.
MYTH NUMBER FIVE.... I am an absentee owner/silent partner and only break even, so my business is not worth anything!
- Untrue! Absentee ownership presents a lower risk to the buyer. They do not have to know the business intimately to own it. Buyers can take the place of key employees and earn greater returns.
MYTH NUMBER SIX.... I can't do this to my employees!
| In most cases, it is important to the buyer that the employees stay on. Also - new ownership can present new opportunities for the employees. |
MYTH NUMBER SEVEN.... I don't need a Broker as I don't plan to sell for a year or two!
| Wrong! A broker can provide you with the knowledge of what you and your company need to do so as to prepare your business for sale. It is never too early to plan your exit strategy. A Fair-Bro International Professional is willing to take on such a relationship and will guide you through the process and prepare your business for selling, sometime in the future. |
No matter what your reason for selling might be - appointing a Fair-Bro International Professional to help you compile, market and present your business to it's greatest potential, is key. Using Fair-Bro International to guide you through the process, will provide you with the assurance that your personal and business information will only be provided to qualified buyers in terms of the strictest confidentiality.
Buyers usually contact all the Brokers advertising businesses for sale. These buyers usually register with all the Business Brokerages, so engaging five different Brokers to market your business, does not mean that your business will be exposed to five times as many Buyers!
- Brokers usually operate from the same "Pool of Buyers".
Appointing an Exclusive Broker, all potential buyers for a business are obliged to negotiate through that Broker, who is then in a position to create a “platform of competition” between all interested Buyers. Conversely, if each of these buyers is introduced to the business by a different Broker, a situation develops where one Broker competes with another for the Seller’s business, instead of Buyers competing with one another on the price!
- To achieve the best price, BUYERS and not BROKERS must compete for your business.
Businesses under Exclusive Mandate are given priority on the Broker’s list of businesses for sale. These businesses receive preferential treatment from the Brokerage.
- Brokers are “answerable” to their Exclusive Mandate Sellers.
If one Brokerage brings a Buyer to see your business one morning and then another Brokerage arranges for the Buyer’s business partner to see the same business in the afternoon, both Brokerages may claim to be the effective cause of a sale. As a consequence, both Brokerages may feel that they are due the full brokerage commission!
- Brokerage conflicts can occur when a business is marketed without an Exclusive Mandate.
By dealing exclusively with Fair-Bro International Group during the period of the Exclusive Mandate, you will avoid these competing claims for commission. Unique marketing opportunities – receive the full benefit of Fair-Bro International Group's marketing effort.
- Fair-Bro International Group offers marketing opportunities for your business that are unique and exclusive to us. We market businesses nationally through the Print Media and our Branch Network.
- Fair-Bro International Group maintains a Buyer’s database that can be accessed regionally and nationally, utilizing a unique Broker referral system - Buyers belong to Fair-Bro International Group and not the individual Broker.
- New business listings are featured on our website home page and all businesses on sole mandate to Fair-Bro International Group, receive prime listing and advertising position.