Frequently Asked Questions

Why buy a business instead of starting one?

It may take more money than time to buy a business. It takes more time than money to start one. The break-even point for buying versus starting a business is the cost to buy equipment, rent a space, pay a staff, pay for advertising, establish contractual relationships and support yourself while you are building up a customer base.

If you buy an established business, you have an income from the day you take over. You already know what can be accomplished by the business. If you start a business, you face a lot of uncertainty over the success and desirability of your product or service. Buying an existing business takes a lot of the risk out of your decision.

What is the best business to own?

Beauty is in the eye of the beholder. Most Buyers want to own a profitable, well-managed business in an industry that holds a personal interest for them. On the other hand, some Buyers may look for opportunities that offer turnaround potential, where they can apply their special skills. In general, there is no industry that is particularly better than another. That is why CII Sunbelt developed it's proprietary "Buyer Profile." When the profile is complete, it will help your CII Sunbelt Intermediary recommend the right business for you.

What is done during the due diligence period?

The due diligence period is used by you to review all aspects of the business - not only the financial aspects of the target business, but competition, changes in market dynamics, available financing, and all other issues that should be considered in purchasing a business. Your accountant and attorney should review the financial and legal aspects of the purchase.

Upon the completion of the due diligence period, you and the Seller are ready for the completion of the sale. To facilitate the closing, a transaction attorney is often used. The attorney is responsible for filing the required paperwork, and ensuring that all licenses and leases are properly handled for all parties to the transaction.

Your CII Sunbelt Intermediary is available to assist with identifying lenders, the transfer of licenses, the assignment of lease and franchise rights, and the performance of due diligence for the target business. If required CII Sunbelt offers business plan services to include financial projections that will generally be required by outside lenders.

How long will it take to sell my business?

It usually takes longer to sell a business than a house or a commercial building. Because of the confidential nature of a business sale, a business intermediary cannot put a For Sale sign in the window or front lawn. The average time to sell a business is usually between six to eighteen months. However, there are exceptions.

Some businesses may sell within a month of being put on the market. Others may take several years to attract the right Buyer. A business intermediary seeks out and talks to Buyers everyday. The next one may be just right for your particular business.

Can I expect an all cash offer or some other type of offer?

For many Sellers, an all cash offer is the only type of offer that is acceptable. Often owners are retiring and pursuing a different life style that requires complete liquidity from their business. Buyer offers run the gamut of possibilities and like any purchase, the Buyer will attempt to "drive a better deal" where possible. Highly desirable industries, business models, intellectual property and high margin businesses command higher prices and better terms, such as all cash more readily than other businesses.

How do you advertise or promote that my business is for sale?

CII Sunbelt uses various vehicles to market and advertise a Seller's business in the most confidential and discreet method possible. CII Sunbelt promotes the sale of your business through its extensive Sunbelt Buyer database; 15 websites that target different levels Internationally, Nationally, and Locally along with, and when appropriate, targeted print advertising.  We also take advantage of having the power of radio behind us.  CII Sunbelt is the only Business Brokerage Firm in Florida to have a weekly 1 hour Radio Show entitled “The Business Advisor”.  Also as part of the Sunbelt Franchise, we have access to market your listing instantaneously to all our 250+ offices that are in over 30 countries worldwide.

When should my employees, suppliers or customers be informed of the sale?

In order to minimize any potential disruption to the business itself, Sellers typically get best results by informing employees after the closing. A different set of guidelines applies to key management and key employees. Owners often need to consider "getting them on board" early in the process.

How do you handle confidentiality?

Only blind profiles or advertisements are used by CII Sunbelt when promoting a business for sale. Once a prospective Buyer has shown interest and met the Seller's initial pre-screen requirements, they are required to execute a binding non-disclosure / confidentiality agreement. This occurs before any detailed information concerning a specific opportunity is released. We are committed to protecting the confidentiality of the business and its owner.

We understand that public knowledge of a potential sale can affect the attitudes and actions of customers, employees, competitors, lenders, suppliers, or investors, and thus the value of the company. We also want to safeguard the employment status of a potential Buyer while he considers a very important change for his future.

How long will I be expected to train the new Buyer?

You must weigh the complexity of your business operations and the buyer's familiarity with the industry in order to arrive at a reasonable answer to this question. Two weeks is usually appropriate in most cases. However, in larger more complex businesses, it is not uncommon for training to be several months, including a consulting agreement. You should maintain some flexibility so not to scare off otherwise legitimate Buyer prospects.

How do you screen or qualify prospective Buyers?

Prospective Buyers are interviewed by a CII Sunbelt Intermediary and a BUYER PROFILE is completed, which includes an analysis of net worth and the amount of capital the Buyer is able to use in order to complete the transaction. Sellers should perform their own due diligence on the Buyer, particularly if offering Seller financing.

What kind of purchase agreement should I expect?

Asset purchase agreements are the norm. Purchase agreements vary by the complexity of the business and the transaction. Most purchase agreements are usually accompanied with ancillary agreements such as non-competes, earn-outs if applicable, bill of sale, etc. . .

What happens when I find a business I want to buy?

When one of CII Sunbelt's listings interests you as a Buyer, contact a CII Sunbelt Intermediary. The Intermediary will be able to answer your questions immediately.

Once your preliminary questions are answered, typically the next step is for your CII Sunbelt Intermediary to arrange a site visit. If your meeting goes well and you like what you see and hear, your CII Sunbelt intermediary will help you prepare an offer based on the price and terms you designate. The offer will generally be contingent upon a review and approval of the actual books and records supporting the financial information that have been supplied. The offer is then presented to the Seller, who can approve it, reject it, or counter it with his or her own offer. The main purpose of the offer is to determine if the Seller is willing to accept the offered price and terms.

Do I need an attorney?

An experienced attorney can be of invaluable assistance in making sure that all of the legal aspects of the transaction are properly handled. Most business intermediaries are not qualified to give legal advice.

It is also important that the attorney be familiar with the business sale process and has the time available to handle the paperwork on a timely basis. If an attorney does not have experience in handling business sales, you may end up paying for his education. CII Sunbelt can provide you with names of experienced attorneys who are familiar with the business purchase and sale process.

What happens when I make a purchase offer?

A purchase contract generally includes: details of the price to be paid for the business, assets that are included in the purchase, training to be provided to you, the time period and area to be covered by any non-compete agreement, and, if there is to be financing by the Seller, the details of the financing.

If you and the Seller agree on the price and terms, the next step is for you to perform "due diligence." Due diligence is the examination and evaluation of risks affecting a business transaction that a prudent person might be expected to exercise. The burden is on the Buyer - no one else. A Buyer may choose to bring in other outside advisors to help or may do it on their own - the choice is solely up to the Buyer. Once due diligence has been completed the closing documents can be prepared and the purchase of the business can be completed.

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