FREQUENTLY ASKED QUESTIONS

1. Not having financials in order and/or
2. Not having their business valued properly.
3. Waiting too long before listing the business for sale.
4. Having an unrealistic asking price.

1. Tangible assets are less important than cash flow and
2. Business Values are based more on the cash flow of the business rather than tangible assets.

The first step in completing a business valuation is to review the Seller’s most recent financials. Reviewing the last three (3) years of tax returns, corresponding P&Ls, and a current YTD P&L is ideal.

In preparing a Business Valuation, we take your most recent financials and make some adjustments by adding back owner salary, one-time expenses, depreciation, interest, and any personal expenses to come up with an Adjusted Net Profit.

We then compare this figure to industry comps (comparable businesses) to determine an appropriate multiple that will result in our suggested selling price range.

It is up to the Seller to decide if it makes sense to sell their business within the suggested price range.

Sharp Business Brokers has established long-term relationships with multiple SBA lenders. The SBA loan process can be complicated, and we can help match you with a bank that meets your specific needs. Please keep in mind that a Buyer must also have excellent credit, and industry experience.

Other financing options available include tax free and penalty free 401k rollover programs.

Sellers should also be mindful of financing options. An SBA lender will also need to qualify a business for loan approval. Sharp Business Brokers will assist you in pre-qualifying your business to help expedite the process.

We advertise on all the prominent business-for-sale websites. Our confidential advertisements are also featured in targeted marketing campaigns.  We also advertise on our website and run a regular AdWords campaign. In every case, the businesses we advertise are kept strictly confidential. Additionally, every Buyer is required to sign a non-disclosure agreement (NDA) prior to learning any confidential details about your business.

We sell all types of businesses specializing in main street businesses with $250,000 to $10 Million in revenue - including Service, Retail, Restaurants, Bars, Salons, MedSpas, Automotive, Ecommerce, Manufacturing, Transportation, Construction, Distribution, and Franchises.

We are in San Diego County and sell businesses all over the United States.

We have the experience necessary to help facilitate the sale of any type and/or size of business. We pride ourselves on getting the job done with integrity. We make our best effort to match the right buyer with a business that is a good fit. At the end of the transaction, we want it to be a win-win for everyone involved.

1. Why are you selling the business?
2. Are you the original owner of the business?
3. How long have you owned the business?
4. Are there any times during the year when the business is busier than others?
5. If you were staying, how would you grow the company?
6. Do you have any type of certifications (minority-owned, female-owned, or other)?
7. What type of training transition period will you offer after the sale?
8. Are there any pending lawsuits, investigations, tax problems, or other issues?
9. What are the terms of your current lease if you have one?
10. What does a person have to do to be successful in this industry now and in the future?

1. Do you have a backlog of orders?
2. What will the current year’s revenues look like (higher, the same, or lower than last year)?
3. Can you explain the addbacks in your financial statement (if you have addbacks)?
4. Are there any big purchases required each year (equipment, vehicles)?
5. What is the average invoice size from your customers?
6. What are the revenues by major product/service category?
7. How long does it take customers to pay their invoices?
8. You recently had an increase/decrease in revenues, what happened?
9. Who gets to keep the accounts receivable that come in after the sale of the business?
10. Would you take a seller's note for part of the purchase price?

1. Is there any new equipment needed soon?
2. What do you do day-to-day?
3. Can others in the company perform the owner's duties?
4. How long does it take to get an order out once you receive it?
5. Can you walk me through the order-to-delivery process (if you take orders)?
6. How many people in the company can do estimating and design for projects (if required)?
7. What percentage of your bids do you win (if you bid on jobs)?
8. Do you use 3rd party contractors or delivery companies?
9. Can you describe any technology or software you use to operate?
10. Do you visit job sites, and if so, what do you do?
11. What licenses or certifications are required, and are they transferable?
12. How many and what types of business vehicles do you have?
13. Who opens and closes the business, who has keys to open the doors?
14. How do you determine the right inventory levels to keep?
15. What is the general condition of the equipment?
16. What will be the inventory level/value at sale (if you have inventory)?
17. How much more can you grow with the current equipment (if you have equipment)?
18. Do you have any key suppliers you need to operate?

1. Why do customers choose you (price, quality, service, etc.)?
2. How many competitors do you have?
3. Who is your strongest competitor?
4. How do you rank in size and capability compared to your competitors?

1. Can you describe who your customers are?
2. Are there any specific industries in which your customers are in?
3. What geographic areas do you offer products and services (how far will you go)?
4. Do you have any contracts or agreements with customers?
5. Have you lost or added any significant customers lately?
6. What percentage of revenues does your largest customer represent of your total revenues?
7. How many active customers do you have (who order on a regular basis)?
8. What is the split of revenues between retail and wholesale?
9. Do you have any personal relationships with major customers or are any related to you?

1. How many workers do you have?
2. How do the employees get paid (salary, hourly, bonuses), and do you offer benefits?
3. What type of background checks do you perform on employees?
4. Do you use contractors, and if so, how many do you have?
5. How hard is it to find qualified employees?
6. Any union employees?
7. How do you train your employees, and how long does it take to get them up to speed?
8. Can you describe what the various employees/techs do?
9. Do the employees know the company is for sale?
10. How do you think the existing employees will react to the sale?
11. What is the employee turnover like?
12. Who are the key employees the next owner will need?
13. How many people at the company are capable of training new employees?

1. Does the franchise company require you to do expensive upgrades or renovations?
2. What support do you get as a franchisee (advertising, operational help, loans)?
3. What happens if someone from outside your franchise territory calls you?
4. What is your franchise area?
5. Are there any franchise transfer fees, and if so, how much are they?
6. Do you have to pay a percentage of your revenue to the franchise company?
7. Are they selling new franchises in your area?
8. What type of relationship do you have with the franchise company (good, bad)?

1. Describe all the services you offer.
2. What additional products/services could you offer to your existing customers or new customers?
3. What are the more profitable items/services that you offer?
4. Have your customers asked you to offer anything else?
5. What is your pricing structure, and is there a gross margin target?

1. Can you describe the different ways that you advertise?
2. Have you ever used Google or social media for advertising?
3. Do you have to submit bids on projects?
4. Could you sell online (if you don’t currently sell online)?
5. Do you have a website?
6. Have you ever had salespeople?
7. Have you ever made sales calls?