Here are the questions that sellers most frequently ask:

Q: How long will it take to sell my business?
A: The time needed for sale depends on a great number of factors, including the price of the business, the type of business, and your willingness to finance the buyer. In general, it takes 90 to 180 days or longer to find a buyer for the business. The price and terms you are offering are important factors. The more reasonably priced, and the better the terms offered, the faster the sale. Your Sunbelt representative can discuss with you how your business fits into these general guidelines.

Q: How will my business be advertised?
A: We will first market to our database of qualified buyers. We advertise on the all of the most important internet business listings sites, including the Sunbelt site, Bizbuysell, CABB, Merger Network, Wall Street Journal, etc., giving your business exposure to thousands of potential buyers. Sunbelt's award winning intranet will make your business listing available to brokers in all of our 300+ offices, who may have buyers anxious to relocate for the right business opportunity.

Q: How will I be protected on the financing I provide to the buyer?
A: The closing attorney will prepare a promissory note and security agreement, and will file a UCC-1 financing statement with the appropriate local and state agencies. It is much like financing a car - your lien will be recorded in the public records and the assets listed on the UCC-1 can not be legally sold or refinanced without your permission. Should the buyer sell the assets without your permission, it would be a felony offense.

Q: Will the buyer pledge any additional collateral for my loan?
A: Buyers do not pledge additional collateral for your loan. When a buyer buys your business, he/she does so based on the business being able to generate sufficient cash flow to pay your loan and provide him/her with cash flow to meet their needs. When you ask for additional collateral, you are sending a negative message to the buyer: the buyer has paid too much for your business and the business will not generate enough cash flow to pay your loan and provide adequate cash flow to the buyer.

Q: What type of offers should I expect to receive?
A: An astute buyer is going to structure the initial offer to insure that they get the best possible price and terms from you. Therefore, you should expect to receive low initial offers. Don't be offended - this is just an initial offer to "test the waters". If you are asking $400,000 for your business, a prudent buyer may offer you $200,000 (or less) in the initial offer. The buyer does not expect you to accept the initial offer, nor should you expect the buyer to accept your initial counter offer. All offers that you receive will have some contingencies. Generally, these contingencies concern review of the financial information, obtaining a satisfactory lease and reaching agreement on a training and transition period. Contingencies are normal and provide the buyer with the ability to check out the business more closely before closing.

Q: How long is the training period for the buyer?
A: Typically you will be expected to provide two weeks to two months training in the business with an equal time of telephone consultation. Remember, you still have an investment in the business, so proper training is in your best interest.

Q: Will I have to sign a non-compete agreement?
A: Yes. Typically the non-compete agreement covers the area from which your current customers are generated, and the time period usually equals the term of the financing you are providing to the buyer. For example, if your customers come from a 30 mile radius of your business and you are providing the buyer with a 5 year loan, you will be asked to sign a non-compete for a five year period covering a 30 mile radius of your business.

Q: When should I tell my employees about the sale?
A: Although it sounds cruel, our considerable experience has proven that it is best to tell your employees about the sale after the sale is complete. Of course, if there is an employee whose expertise will be needed after the sale, you should introduce the buyer to this employee shortly before closing. Your Sunbelt representative can assist you in determining the timing for notifying employees.

Q: Does Sunbelt Business Advisors financially qualify the buyer?
A: No. We typically ask for a financial statement from the buyer and get an authorization to run a credit check, but we do not verify the information submitted or run credit reports on buyers. It is your responsibility to do whatever you feel is appropriate in regards to qualifying the buyer. Generally, if the buyer has sufficient funds for the down payment and for working capital, that is adequate qualification.

Q: What can I do to help sell my business?
A: As Sunbelt begins the process of selling your business, there are several things you can do to help us:

• Keep normal hours.
• Conduct business as usual. Do not let inventory levels dip below normal.
• Keep the business clean and in good repair.
• Remove equipment or furniture that is not part of the sale.
• Provide us with required information in a timely manner.
• Be as accommodating as possible in setting appointments to meet with buyers.
• Work with us and not directly with potential buyers. Always refer buyers to us.