Frequently asked questions from prospective business sellers:

 
Is hiring a business broker to assist with the sale of my business a good idea?

Sometimes it isn’t! It depends on WHO the business broker is and WHAT they will do for you. Ask the hard and detailed questions of them: What do they do to get to know your business in-depth before marketing the business? Will they be involved in actual negotiations with buyers, or do they expect lawyers to do all that work? Will the broker disappear after a Letter of Intent is signed and only show up to collect their check at closing? Farrell Growth is a full-service business broker that guides a seller from the first phone call all the way through negotiations and due diligence to a closing, and beyond if necessary. You should not settle for any less than a full-service business broker who will guide you through the entire process.

 
How does Farrell Growth earn its fee?

We earn our fee by leading and being totally involved in the process in which our customer sells their business to a qualified buyer, in a timely manner, at a price and terms that maximizes the value realized by our customer, and, minimizes tax obligations and legal risks arising from the sale. In the process, we do everything we can to help our customer find the buyer who has the best cultural fit so that their employees and customers are treated well after the sale.

 
What makes Farrell Growth different than other business brokers?

We have a highly qualified team with decades of experience spanning hundreds of done deals. The team you first meet with are the people you and potential buyers will work with day to day. We don’t get a listing and then assign the deal to inexperienced junior staff. We understand how important cultural fit is, and, we do everything we can to vet and understand how potential buyers will treat employees and customers after the sale. We always review and carefully discuss with our customers whether or not it is currently the best time to sell their business, and, we never pressure customers if the timing is wrong. We do not pressure customers to list with us, or, to accept an offer from a potential buyer until our customer is fully informed and ready to move forward. We only accept as many listings as we can handle at any one time. We have an excellent process and procedures. We have an excellent reputation and a long list of very satisfied customers.

 
I want to sell my business in two to three years, not today. What can you do for me now?

We can provide you with extremely valuable information to prepare your business for sale. Our valuation reports contain sensitivity analyses and explanations which clearly lay out the key drivers of your business’s value and how potential operating and financing improvements would increase that value. In the valuation process, we typically spot areas in your current operations which may be concerning to potential buyers and potential ways to address those issues.

 
Is selling my business based simply on the appraisal of my assets a good option?

The plain answer to that question is No. Even if it is a buyer you know very well and they have good intentions, appraisal of assets seldom reflects the true value of the business.  Cash flow-based valuations of profitable businesses are higher than an asset appraisal the vast majority of the time. A total business valuation assesses the positive cash flow of the business, quality of customers, employee contributions to the business, community standing, and many others factors that create an intangible factor that would never be captured in a simple asset appraisal process.

 
I believe my business is too complex to sell – I have so many family and personal activities tied up in it. How can all that be addressed?

Farrell Growth specializes in helping family businesses maximize value, with each seller having unique circumstances. We do that by assessing each aspect of the business and extracting those pieces that would go to a buyer and leaving your personal activities with you. There are also protections that can be established for periods of time to ensure whatever you have in the business, such as family members who may be working in the business, are protected in their roles for a period of time. We do the work of separating out the activities and making those available for sale attractive to a buyer.

 
How do I keep the sale of my business confidential and avoid an auction type process?

Some business brokers will use an auction type process to market a business, making confidentiality very difficult. Farrell Growth does not use an auction process. We will never contact a prospective buyer without your explicit permission. We work closely with the select group of buyers you approve and we have detailed conversations (and/or meetings) with them to ascertain their interest and inform them of your desires as a seller. 95%+ of our completed deals have had confidentiality requirements and were not disclosed to the industry, community, customers, suppliers, employees, or even close family members.

 
How do I know if my business is ready to sell?

Farrell Growth can help by performing a prospective sale assessment or we can perform a valuation of the business without a full listing agreement. We understand some business owners want or need to explore the market before making a decision to proceed. We also appreciate that some owners may have never had their business valued by a professional.  They may not have a full understanding of their business value, so how can the owner(s) commit to a sale process without knowing that potential value? Comfort and commitment with the entire process is an important part of stepping forward to sell. Unwinding the process mid-way through is not something any of the parties involved wants to be doing.

 
How long does the sale process take?

A large part of that answer depends on you, the complexity of your business, and the buyer’s approach. Some total-business sales (including real estate) have closed in as quickly as 90 days while others may take over a year; however, the best general guideline is 4-8 months. Factors such as seller information quality and availability, real estate complexity, a buyer’s negotiation approach, and municipality cooperation can all have timeline impacts that add-up or make things quite smooth.

 
Do you help in the due diligence process performed by the buyer?

We do, we are very experienced at it, and, we work well with the rest of our customer’s team (lawyer, CPA, etc.). We help in every way we can, and, in addition to getting the deal done, our goal is to take as much of the load as we reasonably can off of you and your staff in the process. Further, we assist our customers as needed in post-closing matters.