united business & property brokers

questions? answers!

How do you charge for brokering services?
In most instances we charge only a performance based commission. That is, we get paid upon closing of a sale. Usually our fees are paid by the seller, but in some cases the buyer pays the commission.

Is selling a business like selling real estate?
Not really. Although business owners sometimes liken selling their business to selling real estate, there are many differences. The sale of a business needs to be carefully structured to consider the tax consequences for both buyer and seller. Furthermore, there are a number of intricacies involved in defining what is actually being transacted:

• Is it a stock or asset sale?
• Are accounts receivable included in the sale?
• Which liabilities are included in the sale?
• How will the purchase be allocated?

How can you sell my company and still maintain my confidentiality?
Sellers are justifiably very concerned with maintaining confidentiality. No good can come from customers or employees finding out about a pending sale before the owner wants them to find out.

We do not reveal the name or identifying characteristics of companies we represent for sale until an agreement of confidentiality (sometimes called a Non-Disclosure Agreement or NDA) is signed. Even with a signed confidentiality agreement we stage the release of information based on the level of seriousness and commitment demonstrated by the prospective buyer.

How long does it take you to sell a business?
This is a very tough one to answer. We have sold companies in as little as a few weeks. In other cases, it can take as long as six months. It depends on the business climate, the industry, the seller's own time frame,. and other factors that are not always predictable.

Should I consider an Employee Stock Ownership Plan (ESOP)?
ESOPs are a useful vehicle for certain businesses. Essentially ESOPs involve selling a company to its employees. There are some tax advantages, although recent changes in capital gain tax rates have mitigated those advantages. There are also some advantages to the company itself as employee-owners are the most committed employees. The owner can remain in control of the company even after the sale to the employees.

ESOPs generally make sense only for companies with payrolls greater than $1,000,000 and with valuations well in excess of $2,000,000.

How much is my business worth? How do you establish the value of a small business?
We're asked these questions all the time. Not only can we tell you what your business is worth, but we can take you through every step used in determining business valuation.

If you are planning or even considering the sale of your company, you need to know what your business is worth. Likewise, if you're considering buying a business you need and independent business valuation. We can provide a comprehensive business valuation report for a very affordable price.