Selling a Business

The day you sell your business can be the most rewarding of your business career. It may provide you with the opportunity to do something refreshingly different, or simply offer you a well-deserved break from the pressures of business.

An accurate business valuation will be crucial to a successful sale. Setting a realistic asking price is the first, and probably most important step in the process for selling a business. The price should be set high enough to allow you room to negotiate, but not so high as to frighten off prospective buyers. Our business brokers have the knowledge of the local market and experience to produce a business valuation that accounts for the tangible assets and earnings of your company, as well as its potential for expansion and success.

For this reason, as the first part of our selling process, Frontier Business Acquisitions will provide a free, no-obligation appraisal of your business, so that you can: 

Make an informed decision as to whether selling is indeed a viable option for you at this time, and Ensure that you can price your business to sell quickly, and for FULL VALUE.

To exit your business, our recommendation is that you:

  • Have a valid reason to sell – the more valid your reason, the more interest you will generate among buyers.
  • Don’t wait until it’s too late – selling your business for economic or emotional reasons will lead you to the wrong deal for the wrong reasons.
  • Have your financial records and documentation prepared – The more meticulous the better. Our business brokers will help you identify what you have and what you’ll need.
  • Be part of the marketing team for the sale of your company – you know your business best and we will help you put the information to use in securing a buyer.
  • Don’t let your operations slip – maintain your normal business hours, inventory and appearance.
  • Maintain confidentiality in your day-to-day operations and let us engage the market
  • We will pre-qualify potential buyers for your business. Our evaluation will include financial credentials and will extend to competence and compatibility of potential buyers to help determine whether or not they can be successful after the deal is closed.

In the listing and marketing of your company, and throughout the transaction, maintaining confidentiality is very important

What to Expect When Selling

  • When we engage with you, initially you will be asked to supply some basic information about the business, to enable us to perform high level valuation of your business. We help value your company while setting realistic expectations of what the market will pay. This business valuation includes an income trend of the company, as well as normalized adjustments to get to the true cash flow of the company or SDE (Sellers Discretionary Earnings).

Other considerations for valuation:

  • FF&E
  • Inventory
  • WIP (Work In Progress)
  • Finished Goods
  • Real Estate
  • Contracts
  • Future Projections
  • Intellectual Property
  • Strong Management
  • Franchise Value
  • Licensing
  • Website Domains
  • Customer List
  • History
  • SOP’s

After a visit of your business and premises and a market appraisal, we would agree on a marketable price. We then compile a Confidential Information Memorandum (CIM) to present the business in the best possible light, as the appointed agents. CIMs are shared ONLY when the potential buyer has signed an NDA.

We determine the most likely source of buyers for your business – our own database of prospective buyers, the internet, direct approaches to selective industry lists, local, national websites.

After handling all enquiries from the various sources, the prospective buyers must be qualified. We eliminate time-wasters, hopefuls with no money, and inquisitive competitors. we want to make sure buyers are qualified earlier in the selling process and only qualifies, willing and ready buyers are presented to you.

We will craft the Sale Offer and Acceptance Agreement with input from the buyer. When an offer is received in writing, a deposit is also sought.