Odessa, Texas Business Brokers

Odessa Business Broker

 

Common Questions About Selling Your Business

As part of our process of helping you to sell your business, we make it a point to be there for you at all times and to answer all of your questions. We understand that selling a business can be confusing, and your specific situation may have some complicating factors. At Morgan & Westfield, we have found that there are many questions that are especially common among business sellers. Some of the most common questions that our business brokers have answered include:

• How long will it take to sell my business? This varies based on many factors, including the type of business, your business’s condition, your asking price and the current market. But it generally takes six months to a year. Although it can take more or less time depending on your specific situation.
• Why should I use a business broker? You should always use a professional business broker because they make the process easier for you, help you to avoid mistakes and even help you to negotiate a better price. We put our vast experience to work for you. The buyer of your business will likely have a professional advisor, and you should too.
• Should I use a national business brokerage firm or stay local? You should combine the two if possible. Morgan & Westfield is a national business brokerage firm with a local office in Odessa, Texas. This combination of local and national gives you access to business brokers with local knowledge and connections as well as national resources. 
• What is a non-disclosure agreement? Also referred to as an NDA, a non-disclosure agreement is a contract that is used whenever anyone has access to sensitive information. Basically, it ensures that any information that is given out will not be divulged. Our business brokers recommend having anyone involved in your business’s sale sign a non-disclosure agreement. At Morgan & Westfield, this is required before any information can be released to potential buyers.  
• What is a non-compete, and do I need to sign one? A non-compete is a contract that states that you cannot operate a business in competition with the business that you are selling. Most buyers will require you to sign a non-compete before the sale is closed. The specific terms of the agreement will determine when and where you can open any other businesses.
• How do I set an asking price? An asking price should be set based on the results of your business appraisal and the market. You must remember that the market value of your business should be the determining factor in setting your asking price. Otherwise, you might price your business out of the market, making your business far more difficult to sell.
• How will my business be advertised? At Morgan & Westfield, we utilize a technique called confidential marketing to advertise your business. We create ads for your business that advertise only general information. We place these ads on a variety of websites that are frequented by potential buyers, who are directed to contact our business brokers to obtain more information. Upon contacting us they will be pre-screened and asked to sign a non-disclosure agreement. Once that is complete, they will receive more specific information about your business. This technique has been proven to be effective at both advertising your business’s sale and maintaining your business’s anonymity.
• Why should my business be sold discreetly? This will protect your personal privacy and reduce the stress of selling your business. But above all else, it will protect your business’s value. Failing to be discreet can drive away customers and benefit opportunistic competitors; both of which will decrease your business’s market value.