Thai Sunshine Business Advisors

FAQ (Frequently Asked Questions)

This FAQ Section aims to answer some of the most common questions asked by our clients. We will keep the information here as up to date as possible and hope this will become the first point of contact for technical support and help.

FAQs for Sellers

• Why should I use a business broker?
A business broker can sell a business for a higher price than the owner can for two reasons: One, a broker is a professional who will identify more buyers and bridge the emotional issues that frequently kill deals. Second, owners, as the sales process becomes more consuming, are forced to stop paying attention to business operations --the very reason a buyer is interested--and can cause the business to lose value by the time of closing.

• How are business brokers paid?
Business brokers usually work on a contingency fee basis.

• Who will handle the Closing?
Usually the closing will be handled by the buyers and sellers lawyers together or both may elect to have one lawyer working on their behalf.

• What about training the new buyer?
Usually the seller will help train the buyer for two to four weeks for free, This will help the buyer to understand the process of how the business works.

• How long does the listing process take?
Usually the business advisor will be in and out of your office in about one hour.

• How long is the listing agreement for?
This is optional, but as sellers incur no up front listing fees they are normally happy to list their business until a buyer is found, This can be done exclusive or non-exclusive.

• How long will it take to sell my business?
The average time to sell a business is three to four months this will be determined by the type of business being sold and whether that business is a hot item for sale at that time.

• Why should i keep the sale of my business confidential?
Once employees find that the business is for sale they could quit their jobs, also competition may use this against you, or customers could go to competitors and use their services instead.

• Why should i consider vendor financing?
If we have two equal businesses that a buyer is looking at purchasing then the one with the most attractive terms will get the offer. There may also be tax advantages over time.

FAQs for Buyers

• Why do I need a Business Broker?
The difficulties in buying a business are 1. Identifying businesses for sale, 2. Finding a business that suits your interests and capabilities, 3. Obtaining financing, 4. Knowing whether a seller is serious about selling and 5. Knowing what steps to take in buying the business. A business broker should have answers and shorten the time needed to find a good business.

• Who pays the broker’s commission?
The seller typically pays the broker’s commission unless the buyer chooses to retain the broker to represent them.

• Do I need a lawyer?
You are making a large investment with many unknowns; therefore, you probably should hire a lawyer and an accountant familiar with business transactions. A good broker can recommend or provide support services to you.

• How many businesses should I look at?
Every business is unique, so you must evaluate each on its own merits. Unlike houses where you look at a large number before buying, businesses are not conducive to comparison shopping. Few good businesses are available, and those that are will likely sell while you look for something comparable. Evaluating one business can be consuming. Evaluating two businesses likely will become confusing and nonproductive.

• What are the advantages of buying an existing business?
Actual results rather than pro-forma

Immediate cash flow

Trained employees in place

Established suppliers and credit

Established customers and referral business

Existing licences amd permits

Training by the seller

The availability of owner financing

• Why are there no businesses showing a sold banner on the listing?
Because once a business is sold we remove it from the website and move on with the job of selling the other listings still available.