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Information for Potential Sellers

February 15, 2017

Are you looking to sell your business? 
 
Magnolias Business Brokers operates out of Edmonton, Alberta and lists businesses from primarily Western Canada. Our goal is to sell your business quickly, but have enough time to attract the buyers willing to pay for your businesses value. Every buyer value different items of a business, some value account payable, some value gross revenue, some net profits. We will list and present your business in a way that will get you the value that your business is worth.

If you can give us enough time to market your business, we know we can sell it. But we also need to make sure your business is prepared for sale. Does your business have appropriate procedures and systems  in place? Are your accounting records up to date? Has your tangible property, tools and equipment been maintained? Are all permits and certificates up to date? .... The list goes on-and-on, but we do have a list. We will take you through our pre-sale list and make sure your business is ready to sell and attract full value.
 
Some commonly asked questions that business owners looking to sell will ask us:

 

1) I do not have time to sell my business while it is still running, are you able to handle the entire sales process?

 

Yes and No. Magnolias Business Brokers can handle making pre-sale material, business systems, procedures, marketing, sales meetings, pre-screening buyers, negotiations... But in the end the business owner still has to be present and reachable during the closing stages of the sale. Selling a business takes both time and patience, be prepared for 10 or more meetings towards the end of the sale.

 

2) Where do you find buyers from? Do you qualify them to prevent wasted time and tire kickers?

 

Magnolias Business Brokers maintains a proprietary list of business brokers, buyers, investors and private equity houses. We use this list, as well as subscription based programs to seek out potential buyers for your business. 

 

We qualify every buyer before they receive your company non-disclosure agreement. We want to make sure the buyers intentions and means of payment are feasible before your business information will ever be in their hands. We do this to protect the value of your business, but also to prevent wasting any of the owners precious time.

 

3) Do you prepare sales documentation and marketing material? Is a Non-disclosure agreement included?

 

Magnolias Business Brokers will market and create a overview bundle for your business on retainer. We also offer full contingency options and packages to choose from if you are uncomfortable with a retainer.

 

Essentially, we want to sell your business, and are willing to work within your parameters to do so.

 

Magnolias is also able to provide a standard NDA agreement used to protect your business information; however, we recommend you receive legal advise from your lawyer to ensure the agreement fits within your specifications.

 

4) How long will it take to sell a Business?

 

We will work to sell your business as soon as possible; however, the reality is that businesses typically take 6-18 months to prepare and market properly. After which, and once a buyer is committed, a sale can take anywhere from 3-12 months to execute.

 

If you are looking for a quicker sale then this, we can accommodate your requests, but it will usually come with other terms and questions from the potential buyer.

 

5) How can I increase the value of my business before a sale?

 

Magnolias Business Brokers is a part of Magnolias Consulting Group. Our group specializes in increasing the value of your business through sales, business development, expansion, client list development and company system creation. Upon meeting we will offer possible areas in which value can be improved and explain areas of the business that buyers see value in.

 

6) Will I have to work at the business to transition it once the sale goes through?

 

This is different in every sale. Typically, a owner will be asked to stay in the business for 6-12 months to help transition it over to the new owners; however, this number varies widely and is often a negotiating point during a sale.

 

7) Will I have to sign a non-compete when I sell the business?

 

Yes, No, Maybe. It will depend on the nature of your business, timing, the industry and the business environment of the sale. This is often more important to the buyer then it is to the seller, but we will work with you on your specifications and reasoning.

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