Frequently Asked Questions
  "How is the news that my company is for sale, and its sensitive data, protected from unauthorized entities?"  
  BIDCO works alone, does not "network," nor share data of its clients with any unauthorized parties in the sales process.  
  "How can the value of my company be determined?"  
  There are various evaluation methods or "Rules of Thumb" which are used in specific industries. Also, there are general accepted accounting & financial methods to determine a business's value. Once the company's recent financial statements have been reviewed and an assessment of the company's near term future profitability, a reliable figure usually emerges from employing several of these evaluating methods. BIDCO's policy is to use at least two methods in evaluating a business to give a client the confidence that the sales price reflects its highest value and that it is an obtainable goal in the sales effort.  
  "How long would it take to sell my business?"  
  A company normally takes from three to six months to be sold. In extreme cases, BIDCO has sold a business as quickly as one month and as long as two years to the right buyer and for the right price. (In both of these cases, they were sold to publicly traded companies.)  
  "What needs to be done to sell my company at the 'right price' and to the 'right buyer'?"  
  There are five key ingredients for a successful sale, which being: Establishing the company's value, producing a "Presentation Package," selecting the prospective buyer's qualification criteria, presenting the company to the qualified prospects, and vigorously negotiating for the seller's interest.  
  "What is a 'Presentation Package' and why is it needed to sell my business?"  
  The "Presentation Package" is a brief but descriptive summarization of the company's essential aspects of its business. It is designed to elicit acceptable offers from the targeted buyers. In many cases, it eliminates, or at least reduces, many face-to-face meetings prior to offers being submitted. And, it removes a lot of inordinate anxiety from the seller in the sales process.  
  "How many buyers, or offers, does it normally take to sell the business?"  
  Normally, it takes a couple of offers from two or three targeted buyers to meet the seller's sales objective. However, in many cases, it only takes one offer from one buyer to meet the client's sales objective.  
  "Are there things that can be done to improve or enhance the sale of the business?"  
  Yes. For instance, complete the things that have been put off, such as:
  • Replace expired customer contracts with new or renewed contracts
  • Review and update the company's pricing structure
  • Clean up the Accounts Receivable Aging Report
  • Follow through on sales or bids that have been postponed for lack of attention
The above suggestions are relatively inexpensive to execute and can quickly improve the company's image.
  "Does the buyer request that the seller remain on after the sale?"  
  Normally, the buyer will request that the seller remain with the new company for a short period of time (one or two months) to insure a smooth transition. However, this issue is addressed in the "Presentation Package," as to the availability and desires of the client in any post-sale relationship with the buyer.  
  "What will happen to my employees when the sale occurs?"  
  A buyer wants to not only maintain the current sales and profitability of his newly acquired company but wishes to increase its sales and profits. In most cases, the buyer will look to the seller for advice of whom to retain, promote, and dismiss.  
  "When do my attorneys and accountants come into the picture?"  
  Normally, the client's accountant will be supplying BIDCO with details of the company's financial statements during the evaluation phase. BIDCO strongly advises that both the client's accountants and attorney(s) review any Letter of Intent or Purchase Offer prior to its acceptance.  
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