Here are brief answers to some frequently asked questions.

If you don't see the answer you are looking for, please Contact Us with your question.

For information related to policies and practices, e.g. privacy, confidentiality, copyright, and other legal information, see About Us.

QUESTIONS ABOUT WebBizBroker

What is WebBizBroker?
WebBizBroker is an online service designed to help facilitate sales of businesses. We put business owners and brokers together with prospective business buyers and brokers. We also provide resources to sellers, buyers and brokers to help with the transaction or the operating business.

Who is WebBizBroker?
We are professionals with decades of practical corporate and entrepreneurial experience, including leadership positions with General Electric, GTE (Verizon) and our own venture capital business.

Is WebBizBroker global?
Yes, WebBizBroker works with sellers, buyers, brokers and other professionals, e.g. lawyers, accountants, etc. around the world.

Why should I list my business with WebBizBroker?
If you are trying to sell a business, WebBizBroker offers you an efficient and affordable way to reach potential buyers.

Is the listing of my business for sale kept confidential and private?
Yes but with your permission we do share within our community the information that you submit in the Sell a Biz form.

We believe that in order to best facilitate the sale of your business, that it's better not to require buyers to register.

If you are concerned about parties identifying your business as for sale, you can opt to only provide a limited amount of information within your listing. If a potential buyer contacts you and you feel comfortable enough, you can then share with them additional details.

For further information about our privacy and confidentiality policies, see Policies & Practices.

I want to list my business with WebBizBroker. How do I do it?
WebBizBroker has developed a fast and easy process for you to submit your business listing. On any page's top navigation bar you can select the "Sell a Biz" button. Remember, you don't have to provide any more information than you want to but the better you describe your business, the more effective your listing will be. Our system will comb our private and confidential database to efficiently match your business with the appropriate prospective buyers. Learn more about How It Works.

How long does it take to complete the "Sell a Biz" form?
The form was designed so you could complete it in five minutes or less.

Does WebBizBroker post my business plan on the Internet?
No. WebBizBroker is a web site, which is accessed by Internet users but we do not post your business plan. Sellers can complete as much or as little of the Sell a Biz form as they wish. Prospective buyers will obtain the sellers' provided contact information from the form. The parties will further discuss the opportunity, share documentation, e.g. your businesses plan, negotiate and close without the involvement of WebBizBroker.

In order to give sellers maximum exposure to prospective buyers, we decided not to require buyer registration or membership.

How long does it take for the system to complete the "Find a Buyer"?
*This would be the same process for "Find a Seller" or "Find a Broker"?
It takes about 30 seconds to find out if one or more buyers matched with your business description. If your business is matched with one or more buyers, the system will present you with their summary information.

Remember, we don't require buyers to register or enroll with us, so if you get a limited number of buyers, or no buyers identified from your search, that doesn't mean that visiting buyers or brokers won't see your listing.

Further, you can adjust your search criteria accordingly to either narrow or expand the results of your search.

Does WebBizBroker purchase companies that post "for sale" listings with WebBizBroker?
No, WebBizBroker does not typically invest in or purchase companies. We are a service designed to accommodate our worldwide network of buyers, brokers and sellers. Our buyers and sellers are from countries around the world. They are interested in a wide range of types, categories, stages and sizes of businesses.

Can I contact the buyer directly?
Yes. We also encourage the buyer to contact you directly. We are not involved beyond helping you initially find each other.

Can I select which buyers will receive my "Sell a Biz" form?
No, all WebBizBroker visitors can see your completed form.

The information that you include in the form will enable better screening and matching of your business with the collected individual buyer preferences that reside in our database.

If I list my business "for sale" with WebBizBroker, how long will it take me to find a buyer and close my transaction?
Once you list with us you will be taking a smart step to increase your visibility to buyers and brokers. Depending upon your business and how quickly it matches up with interested buyers, you will then likely be contacted by buyers or brokers. Depending upon how good the match is and how your discussions proceed, you would likely share additional information, negotiate, and close. The duration of time will vary.

WebBizBroker will not track your process nor be directly involved. In the event that the buyer were to lose your contact information, or something of that nature, we will gladly help facilitate your mutual contact. Further, you or the buyer may wish to avail yourself of some of the WebBizBroker Resources, offered to help facilitate your transaction.

QUESTIONS ABOUT BUYING A BIZ

Why buy a biz when I could just start one?
Starting a biz from scratch is always an alternative worth consideration. Unfortunately the vast majority of start-ups do fail within the first three years. Therefore, if you are able to identify an interesting existing business with agreeable terms, there are distinct advantages to buying a biz versus starting one. Depending on the biz for sale, it is likely to have:

1. a track record that you can use as a baseline, rather than having to rely exclusively on projections.
2. current cash flow
3. established customers
4. skilled employees
5. vendor relationships
6. completed administrative paperwork, e.g. licenses, permits, etc.
7. owner provided training and financing to ease transition.

Should I seek advice from a business broker?
A professional business broker can be helpful in many ways. They can provide a selection of different businesses that you might not be able to find on your own or at WebBizBroker.

Business brokers are also an excellent source of information about small business and the process of buying a business. They are particularly familiar with local markets and can advise you about market trends, pricing, etc.

A business broker can handle many of the transaction details, including helping you negotiate with the seller. If you are looking for a Business Broker to help you buy a business, you may want to go to our Brokers Page.

Why should I bother looking at WebBizBroker?
We work closely with business brokers and encourage you to do so. If you complement your search for a business to buy, by using WebBizBroker's service, you may identify a business for sale that would have otherwise been missed. If you sign-up for our Biz Alert feature and regularly check our Spotlight, you'll be improving the possibility of finding a business.

If you find a business to buy through WebBizBroker, your broker is still a helpful resource to walk you through the transaction.

If you need to find a local broker, use our Find a Broker page.

Should I seek advice from an attorney and/or an accountant?
Generally, unless you happen to be highly skilled and experienced with transactions of this type, it is advisable for both the seller and the buyer to retain professional assistance. (If you need help finding a professional, see our Resources section.)

How do I know what to pay? How are businesses valued?
There's no magic answer and the bottom line is that what to pay/valuation gets to be subjective, depending upon how badly you want to buy the business and how badly the seller wishes to sell.

There are at least three methods of valuing a business and they all interrelate to what's going on in the market with the supply, demand-for, and valuation of comparable companies. Start by looking at:

1. The fair market value of the business' assets, e.g. inventory, equipment, receivables.
2. The business' earnings and realistic projections. Demand for the type of business in that category. Traditionally different industries command different valuations, e.g. different "multiples".

How do I find financing?
Generally, the type and amount of financing that you need will dictate how and where you will find financing. We offer the names of some professionals in our Resources section.

What if I find a business for sale at WebBizBroker but I don't want to personally contact the seller?
WebBizBroker's Virtual Broker service can make an anonymous inquiry on your behalf, asking any of the questions that you select on the Virtual Broker Form plus other custom questions that you may wish to add.

Can you tell me more about what's involved in buying a business?
The process varies and there's no set process. However, there are a few key things you need to decide up-front and then steps that are usually recommended:

1. Decide what your price range is. The size of the business that you seek to buy and will be able to secure financing for depends on your net worth, experience and track record. These factors will influence your ability to borrow money, raise capital and/or pay cash. A lender or investor will look at:

• Your ability to pay back a secured loan. Typically your promise to pay this debt will be "secured" by granting the lender an interest in specific property (collateral) that you or the business own, e.g. property, plant, equipment, stock.
• The business' capability to service the loan. In other words, to finance your acquisition your lender is likely to want to see a cash flow budget showing anticipated cash receipts and disbursements of the business on a month-to-month basis. This is done to illustrate that the business can make the anticipated loan payments while also supporting you, e.g. will the business take in more cash than it will pay out over a certain period of time. An Accountant can be helpful.
• Your experience and ability to operate this business. Any industry or other relevant experience along with demonstrable performance should be help you.

2. Decide the type of business and category that you are looking for. Keeping in mind that the majority of buyers actually buy a business different from what they originally were seeking. Therefore you should remain flexible and open-minded while trying to focus on those areas that would best fit your overall preferences. Use our Start Page or Find a Business function to establish criteria and see businesses for sale. You can always edit your criteria to widen or narrow your search.

3. Get the basic information. Get preliminary information on the business:

   • Location
   • Description
   • Price
   • Financials, e.g. turnover, net return
   • Employees
   • How long the has the business been operating
   • How long has the current owner owned it
   • The owners reasons for selling
   • Are the premises leased or freehold? If leased the terms of the lease.

If the preliminary information is not what you are looking for, then it doesn't make sense to continue discussions with the seller. If you still like the business, contact the seller or the broker, or have the seller contact you. If there's a broker involved the broker may have prepared a selling memorandum or profile of the business. Ask for it.

At WebBizBroker there are three easy ways to contacts a seller:

1. Buyers or their brokers are free to directly contact sellers or their brokers, using the contact information volunteered by the seller or their broker in the listing.
2. In cases where you, the buyer may not wish to disclose your identity, at least not early in the process, you can use our Virtual Broker function. We at WebBizBroker will act as your "free" intermediary, enabling you to anonymously ask questions to the seller via email. We do however encourage you or your broker to establish direct contact with the seller or their broker as soon as possible, as that is in the best interest of you and the seller.

QUESTIONS ABOUT SELLING A BIZ

What will buyers be looking for in my biz?
Buyers have a wide range of interests, motivation and criteria. Be prepared to impress upon or convince the prospective buyer(s) why buying your business is preferable to starting their own, which is always a consideration. Impress upon the buyer the advantages of your existing operation and track record, and try to be flexible so that you might arrive at agreeable terms. For starters, buyers will want to see or discuss:

1. Any evidence of your business' track record, rather than having to rely exclusively on projections.
2. Current cash flow
3. Customer list
4. Organization structure - employees
5. Existing Vendors
6. Administrative papers, e.g. licenses, permits, etc.
7. Your willingness to provide training and financing during the transition.

Should I work with a business broker?
A professional business broker can be helpful in many ways. They can show your business to potential buyers who might not be users of WebBizBroker. An example might be another existing local or remote operating business that is looking to expand or diversify.

Business brokers are also an excellent source of information about small business and the process of selling a business. They are particularly familiar with local markets and can advise you about market trends, valuation, etc.

A business broker can handle many of the transaction details, including helping you negotiate with the buyer. If you are looking for a Business Broker to help you sell a business, you may want to go to our Brokers Page.

Why should I use WebBizBroker?
We work closely with business brokers and encourage you to do so. If you complement your sales effort by listing with WebBizBroker, you may attract a buyer that would have otherwise been missed. If you sign-up for our Find a Buyer and Spotlight functions, you'll improve the possibility of selling your business.

If you find a buyer through WebBizBroker, your broker is still a helpful resource to walk you through the transaction.

If you need to find a local broker, take a look at our Broker List.

Should I seek advice from an attorney and/or an accountant?
Generally, unless you happen to be highly skilled and experienced with transactions of this type, it is advisable for both the seller and the buyer to retain professional assistance. (If you need help finding a professional, see our Resources section.)

How do I price my business? How are businesses valued?
There's no magic answer and the bottom line, at least our opinion is, that your asking price is somewhat subjective, depending upon how badly you want to sell your business and how badly the buyer wants to buy.

There are at least three methods of valuing a business and they all interrelate to what's going on in the market with the supply, demand-for, and valuation of comparable companies. Start by looking at:

1. The fair market value of the business' assets, e.g. inventory, equipment, receivables.
2. The business' earnings and realistic projections. Demand for the type of business in that category. Traditionally different industries command different valuations, e.g. different "multiples".

Do I have to offer financing?
No, you don't but if you can it may help expedite your sale. To learn more, read our Finance section and talk to some of the professionals listed in our Resources section.

What if a buyer sees my business for sale at WebBizBroker but doesn't want to personally contact the me?
WebBizBroker's Virtual Broker service can make an anonymous inquiry to you on their behalf, asking any questions that they may wish. You answer what you're comfortable with. It's simple, we'll send you an email and you'll answer us via email. If the buyer is still interested and when they are ready, they'll make contact directly with you per the information that you listed.

Can you help me review what I need to do to sell my business?
There's no set process. However, there are a things you need to decide up-front and steps you need to prepare for:

1. Decide on an asking price. Look at comparable businesses and what they've sold for. Prepare an analysis in case you want to use it with a buyer.
2. If you anticipate offering financing, or if the transaction will be dependent upon the buyer securing outside financing, be sure to assess the prospective buyer's ability to secure financing, their net worth, experience, and track record. These factors will influence the buyer's ability to borrow money, raise capital, pay cash, obtain and pay back or service a secured loan.
3. Use our Sell a Biz Start Page, and Find a Broker pages or functions to list your biz for sale. You can always edit your listing.
4. Be sure to prepare your basic biz information:

• Location
• Description
• Price
• Financials, e.g. turnover, net return
• Employees
• How long the has the business been operating?
• How long have you owned it?
• Your reason for selling?
• Are the premises leased or freehold? If leased the terms of the lease.

If the preliminary information is not what the buyer is looking for, then it doesn't make sense to continue discussions with the buyer. Try to determine as quickly as possible whether you have a serious buyer or just a window shopper.

If you are working with a broker, it will probably help to have the broker prepare a selling memorandum or profile of your business. This should be made available to qualified prospective buyers.

At WebBizBroker there are two easy ways for you to communicate with buyers:

1. Sellers or their brokers are free to directly contact those buyers or their brokers who have permitted us to include their names and criteria in the buyer database.
2. In cases where the buyer may not wish to disclose their identity, at least not early in the process, they may use our Virtual Broker function. We at WebBizBroker will act as a "free" intermediary, enabling the buyer to anonymously approach you with specific questions thru us via email. We will however encourage the prospective buyer or their broker to establish direct contact with you or your broker as soon as possible, as that is in the best interest of you and the buyer.