Selling Your Business Is A Major Decision!

Selling your business is a major decision! You have devoted your time, money and energy to building, running and operating your business, and it may well represent your life's work. You have decided that now is the right time to sell, and you want the very best professional guidance you can get. This is when working with a RYS&Co Merchant Banker can make the difference between just settling on value of the business or selling it for the very best price and terms possible in the current market. Below are some of the most common questions asked by sellers; the responses are based on both experience and knowledge.

What can RYS&CO do, and what can't they do? RYS&CO staff are the professionals who will facilitate the successful sale of your business. It is important that you understand just what RYS&CO can do as well as what they can't. As your representative, RYS&CO can help you decide how to price your business and how to structure the sale, so it makes sense for everyone, for you and for the buyer. RYS&CO will strive to find the right buyer for your business and will work with you and the buyer every step of the way until the transaction is successfully closed. RYS&CO will also help the buyer with all the details of the business-buying process.

RYS&CO is not, however, able to convince potential buyers to buy an overpriced business. Most businesses are saleable if priced reasonably and if the deal is structured properly. You must understand that only the marketplace can determine how much a business will sell for. The amount of the down payment you are willing to accept along with the terms of the seller financing can greatly influence not only the ultimate selling price, but will also determine the ultimate success or failure of the sale itself.

How long does it take to sell my business? The answer is, “Sometime between now and never”! It generally takes, on average, between four to six months to sell most businesses that are prepared for the transaction. Keep in mind that some businesses will take longer to sell, while others will sell in a shorter period of time. The sooner that all the information needed to begin the marketing process is assembled and verified, the shorter the transaction time period should be. And it is also important that the business be priced properly right from the start.

Why is seller financing so important to the sale of my business? Surveys have shown that a seller who asks for all cash receives on average only 70 percent of their asking price, whereas sellers who accept financing terms receive on average 86 percent of their asking price. That's a difference of 16 percent! In many cases, businesses that are listed for all cash just don't sell. With reasonable terms, however, the chances of selling increase dramatically. Most sellers are unaware of how much interest income they can receive by financing the sale of their business. In some cases, it can greatly increase the amount received. And, it tells the buyer that the seller has enough confidence that the business can, indeed, pay for itself.

What happens when there is a buyer for my business? When a buyer is sufficiently interested in your business, RYS&CO will request a formal offer or proposal from the buyer. This offer or proposal may have one or more contingencies. Usually, they concern a detailed review of your financial records and may also include a review of your lease arrangements, franchise agreement (if there is one) or other pertinent details of the business. The buyer's proposal will be presented to you for your consideration. You may accept the terms of the offer, or you may make a counter-proposal.

What can I do to help sell my business? You can work closely with us and also with any other professionals that you are using. A buyer will want up-to-date due diligence that includes financial information. If you use an accountant or bookkeeping firm, you can work with them to make current information available. If you are using an attorney, make sure he or she is familiar with the business closing process and with the laws of your particular state. You might also ask if their schedule will allow them to participate in the closing on very short notice. If you and the buyer want to close the sale quickly (within a few weeks), unless there is a required license or permit process that might delay things, you don't want to wait until the attorney can make the time to prepare the documents or attend the closing. Time is of the essence in any business sale transaction. The failure to close on schedule permits the buyer to reconsider or make changes in the original proposal. And, finally, your team of advisors must all be working towards the common goal of selling your business for the best price and most favorable terms available in the marketplace, closing the sale as quickly as possible! Remember, that as your professional advisor, RYS&CO is on your side.

The RYS&CO team specializes at working with individuals and company clients on transactions for buyers, sellers or for combination mergers. RYS&CO provide transaction searches, valuation, transaction structure & negotiation, financing options and execution advisory services.

RYS&CO represents clients exclusively to maximize value, control costs, and to achieve a successful transaction.

Our extensive experience and industry knowledge enable RYS&CO to provide its clients with comprehensive advisory services across all stages of a sell-side transaction. Our capability to structure, negotiate and execute creative transactions helps our clients achieve their financial and strategic goals.

Sell Side Advisory Services:

Comprehensive services for sell-side acquisitions, divestitures and other exit strategies;

·      Explore, analyze and advise on strategic alternatives;

·      Provide valuation;

·      Prepare marketing documentation;

·      Advise and develop deal structure;

·      Identify and evaluate potential acquirers; and,

·      Support final closing execution.