Here are answers to some of the most common questions we are asked.

If this does not answer your question, or if you have another question that you would like to ask, please don't hesitate to contact our office at 480-736-8799.

TOP 5 THINGS YOU CAN DO NOW TO GET YOUR BUSINESS READY FOR SELLING:

  1. Put systems in place so that enable a Buyer to imagine themselves in there doing what you do every day. If it's "all in your head" make a procedures manual. Avoid making yourself so integral to the business that nobody can do what you do.
  2. If you have a lot of unsalable inventory, get rid of it, sell it on Ebay, donate it or just liquidate it.
  3. Create a web site, even if it just refers people to your business address and what you sell. Someone can add to it later.
  4. Keep good books and records. This can't be stressed enough. If you are taking money out of the business and not reporting it on your taxes stop doing that at least 1 year before you are ready to sell. You will get a higher value for your business when it sells, and decrease the chances of having to provide seller financing. You will have a much larger market of Buyers who will be interested in your business as well as Lenders who will be willing to lend on it.
  5. Pay off as many of your liabilities as you can. It will allow you to better negotiate the sale of your business, which will allow you to be able to deliver the assets free and clear of any liens or encumbrances.
Q: How long have you been in business?
A: Apeiron Business Brokers has been in the Phoenix Metropolitan area years and our Business Brokers have over 50 years of combined experience in this specialized industry. Apeiron bought an existing Business Brokerage firm in 2000 and has grown the company to what it is today by building the reputation as one of the top rated business brokerage companies in Arizona.
Q: How do you protect my confidentiality?
A: Your confidentiality is of utmost importance to us when locating a buyer for your business. We have all prospective buyers fill out a Non-Disclosure agreement stating that they are aware that the sale and associated information is highly confidential and could damage the business if not kept confidential from employees, vendors and customers. We also inform them that they may be held liable for a breach of that confidentiality. In addition we ask the prospective buyer to provide us support of their net worth as to show their ability to purchase the business as to not waste the Seller’s time.
Q: How do you market my business?
A: Apeiron Business Brokers will post the business confidentially online to the most viewed sites for business sales. Of course, no one will have access to the name or identifying aspects of your company except us. We will prepare a prospectus of your business. It includes financial information for the last 3 years as well as an overview of your business structure, what you as an owner do and what a buyer could do to grow the business. The first step in the marketing process is to match your business with a buyer in our extensive database of buyers. Our date base includes synergistic buyers, private equity groups and private individuals. We also advertise listings on our own web site, www.apeironbb.com. We will also create a database on companies that could be interested in your business for their company's growth plans as well as companies that would benefit by diversifying and being able to sell their existing customers the services of your company.
Q: How do I know the buyer has the money to buy my business?
A: We have the buyer fill out a personal financial statement telling us how they plan to fund the purchase of a business and the source of the money for the down payment. This allows us and the seller to evaluate a buyer’s ability to purchase the business, which has proved to be a good process for us and our clients.
Q: How much is your commission?
A: We charge a commission based on the selling price of the business. We use the Lehman Scale to determine commission on businesses that are larger in value.
Q: How do you evaluate my business?
A: There are different ways to evaluate your business depending on what type of business you own. Do you have an inventory based business or a service business? There are whole books written on business evaluation. Generally speaking, for a service based business you would look at a multiple of the Sellers Discretionary Cash Flow. We can go into more depth when we meet and give you a price for your particular business. Many factors need to be considered in the evaluation and we conduct an in-depth interview on what factors might have an impact on the value of your business.
Q: How long do you think it will take to sell?
A: Our engagements for all businesses are 12 months. There is no “up front” or “marketing” fees and we do not get paid until your business sells. Looking for that Buyer who wants to get up every day and be "you" is harder than it sounds. We never know when we will find the perfect buyer but we do know what businesses will be attractive to buyers and why. We also know how to make them as attractive as possible and how to position them for sale. While averages vary on the amount of time to sell, our history indicates approximately 7 months from hiring to closing. Apeiron Business Brokers has a fantastic track record for sales of the businesses we represent, 83% versus the industry average of only 25%!
Q: What do you do?
A: We do everything to sell your business so you can continue to run it and keep the sale confidential. We do a Prospectus on your business giving a prospective buyer a good idea of what it will take to run your business and also to make it grow. We screen buyers before you ever hear about them so that we don't waste your time with unqualified prospects. We have them sign a Non-Disclosure Agreement and fill out a Personal Financial Statement before they ever see a Prospectus. We pay for all advertising costs including internet and print ads If necessary, we will send letters to other companies that might be interested in diversifying or growing by purchasing your business. All advertising is done "blind" and no information is given that would be able to identify you specifically. We help qualify your business and the buyer with SBA lenders for financing. We write up the contracts, counter offers, set up escrow, help the buyer set up a corporation or LLC and help facilitate the process every step of the way from due diligence to the close of escrow.
Q: What do I need to do?
A: You will need to run your business like you have no intention of selling. The best way for you to facilitate the sale of your business is to keep great books and records and don't let sales drop. If you have a business with contracts, fill that pipeline for the new Owner. It will make them more comfortable about their ability to meet any debt service they may have on the purchase of your business and it will make the lenders comfortable for the same reason. Other things you can do are to respond promptly to offers and counter offers and make an effort to be available to meet with the prospective buyer.
Q: Will I have to take a note?
A: Depending on the experience the buyer has in your field the lender may or may not require you to carry a percentage of the purchase price, usually not more than10%. Also, it makes buyers more comfortable if, for some short time after closing, you have an interest how they are doing and an interest in helping them to hit the ground running. Sometimes the seller will not be asked to carry a note.