To Your Questions
Review our most frequently asked questions below.
Most businesses receive an offer in 3 months or less. The expect 30-60 days to close. The overall timeframe will vary by industry and is dependent on the asking price, company size, financial performance, the complexity of the transaction, buyer financing, and market conditions.
Every potential buyer qualified and required to sign our Non-Disclosure Agreement before we provide the confidential business review. In addition, we keep the most important “trade secrets” of each business completely confidential, even during the due diligence phase, ensuring the truly sensitive information is only revealed post-closing.
We use custom valuation software designed by business brokerage veterans. Valuation is a complex topic with many facets. There are many different variables (tangible and intangible) that are considered when calculating the value of a business including current financial performance, owner dependency, overall business model, profit margin ratios, profitability trends, growth potential, current market demand, “wow” factor, lifestyle, and more. Our brokerage uses a collaborative approach, working with sellers to educate them on what drives value and then working together to maximize the selling price.
Lighthouse Business Brokers is agnostic. We are numbers based and we represent business in all industries. We subscribe to multiple benchmarking services that allow us to quickly and accurately value businesses across the board. Our office in Chicago, IL concentrates on businesses whose annual gross revenues are between $1,000,000 and $50,000,000. No matter what industry, our team is ready and able to help you navigate the complex yet rewarding process of selling a business.
With our compensation being 100% performance based, we invest a considerable amount of time, energy and money upfront to represent each business. Since there is no guarantee that we will be paid for our work, it’s customary for buyers to sign an exclusive listing agreement, which outlines the terms of our representation and gives us the time and confidence we need to properly do our job, which is ultimately to successfully sell your business for the maximum price.
Lighthouse Business Brokers seller representation is 100% performance based. We only get paid when we successfully sell your business. Lighthouse also offer a la carte advisory services such as valuations for non-sellers.
After an offer has been accepted by the seller, the buyer is entitled to review reasonable supporting source documentation that was used to prepare the financial statements represented in the company’s CBR (Confidential Business Review). The supporting documentation usually includes leases, merchant account statements, general ledgers, bank statements, company tax returns, w2’s, supplier invoices for the past 3 years and more. We take the time upfront to ensure all numbers presented are accurate and our team is experienced in facilitating a smooth due diligence process.
Simply put, we are the best in the business. We can say that with confidence because we know our competition and strive daily to better serve our clients. Our track record speaks for itself. Our brokerage invests in more marketing than any other brokerage that we’re aware of, so our listings get the most exposure possible. We are using digital marketing techniques that nobody else in the industry uses. We are excellent communicators, unlike some brokers, we will always respond and never leave you in the dark. We have the experience, resources, and tenacity needed to find the perfect buyer for your business. We’re entrepreneurs just like you. We have personally started, operated, and sold businesses of our own so we have the first-hand experience needed to guide you every step of the way. Last, but certainly not least, we are highly ethical and will work diligently to minimize seller liability. We believe in putting good karma into all of our deals.