Successfully Selling Your Business is Our Only Business
Selling small businesses can be a financially rewarding and personally satisfying experience or a nightmare depending upon how well the transaction is handled. You will only sell the business once; you have one chance to realize the maximum financial benefit from years of hard work, blood, sweat, and tears. The selling process is a frustrating and emotional experience. In today’s highly litigious society the sale of a business is a high-risk proposition. The sale is not something you should take lightly and is not a do-it-yourself project without a complete understanding of the process.
Services we provide include:
Business Evaluation
We perform a comprehensive financial analysis, identify your business’ strengths and challenges, consider market conditions, and examine comparable sales data. We begin to form a specific strategy to meet your objectives and maximize your net return. We will walk you through the justification of value and show you how to understand the potential buyers’ view of value and will demonstrate how we will get top dollar for the business.
We promise we will not…….
…….”Embellish” the numbers to overstate your discretionary earnings and potential value of the business. Any intelligent buyer will recognize this; we will lose the credibility we must have to get you the maximum value for your business.
……. Overstate the value of your business to “get the listing” believing that we can convince you to lower the price at a future date. Quality buyers recognize realistic values. If we cannot reasonably justify the price, you will not get the business sold.
……. Lie to you about the financing alternatives that are actually available and/or the likelihood we can “cash you out”, only to come back to you with reality after you are heavily invested with a buyer unable to put his financing together.
Marketing the business
We are sales professionals first. We use numerous tried and true methods to maximize your exposure to qualified purchasers while maintaining complete discretion and absolute confidentiality. We prepare and implement an effective marketing strategy and develop all necessary presentation material.
We promise we will not…….
……. Compromise your confidentiality by widely distributing your information to a large number of associates or affiliates. Then be unable to offer anything more than an apology when a key employee or one of your customers show up with your tax returns in hand, and we cannot identify the source.
……. Lead you to believe advertising will get the job done, it will not. The fact is less than 30% of buyers that acquire a business called us on an advertisement for the business they acquire. We are sales professionals; we sell your business, advertising simply assists us in making contact with prospective buyers.
……… Run a “tour of businesses” for buyers in order to impress you with “activity”. Our commitment is that you should not need to meet with more than three prospects before the sale is completed. Before you waste your valuable time with a buyer, a professional should have the buyer ready, willing, and able to make the purchase, when your first meeting goes well.
Qualifying and working with prospective purchasers
We fully screen and pre-qualify all prospects. We require they provide financial and professional qualifications. You invest your time only with real purchasers, eliminating hundreds of wasted hours and misdirected efforts. We believe the more informed the purchaser is, the more likely we are to put together a successful transaction.
We promise we will not…….
……. Encourage and exploit buyers’ unrealistic expectations and ignorance. Small business ownership with all its rewards, is very hard work. Buyers need to understand the reality of small business ownership not a fantasy about “being their own boss”.
……. Misrepresent, mislead, or omit the disclosure of the information necessary for a buyer to make a fully informed decision. While we are your agent, we do not believe this is license to take advantage of any buyer. Your best interests are served by full complete and honest disclosure. Integrity makes a difference.
……. Expose your business to unqualified buyers. We do not believe in the “throw enough against the wall something might stick” approach. We require buyers to provide their qualifications and demonstrate a reasonable understanding of the personal requirements necessary to successfully operate your business.
Negotiating the contracts
We skillfully and expeditiously procure the maximum price, most favorable terms, and conditions on your behalf. We have an in-depth understanding of the legal and accounting complexities of the transaction. We understand all the tax ramifications of transaction structure and believe it is how much of the total price you keep after taxes that counts. We will help you to avoid costly mistakes, minimize unpleasantness that often accompanies emotional negotiations, and provided practical win-win solutions to complex concerns.
We promise we will not…….
……. Insult you with comments like “it’s only worth what someone will pay” or “buyers expect you to discount price”. In fact, we recommend you do not negotiate on price. Price the business fairly, justify this value and we will get you your price. If you engage in the never-ending battle over price it is likely you will lose the sale or destroy the positive rapport you need with the buyer.
……. Ignore the after closing consequence of the transaction on the buyer and/or the business just to get a commission check. We strive for balance, structuring the sale to obtain the maximum value for the seller while working to provide for the future success of business. We endeavor to assure each side of the transaction acts in good faith.
……. Underestimate your need to feel that your employees and customers will be provided for after the sale, that the buyer has a bright future with an excellent opportunity and the ability to sustain the business. Peace of mind and personal gratification are a result of a win-win transaction.
Closing the transaction
Hundreds of successful transactions have refined our documentation and expertise in expediting the difficult “due diligence” and closing process. We offer competent step-by-step assistance through the process, coordinating efforts with all professional advisers attorneys, accountants, bankers, and others. We will keep all parties to a transaction completely informed and on track, while assuring that each detail is handled. You deserve no surprises!
We promise we will not…….
……. Abandoned you after introducing the buyer with a “call me when the closing date is scheduled” attitude. We are intimately involved and accept the responsibly for seeing all tasks are completed in order to close successfully.
……. Allow the buyers due diligence to overwhelm you. We prepare you for the process and control the flow of information. Further, we help prevent the common practice of last-minute re-negotiation that the buyer’s attorneys are so fond of.
……. Allow you to be ambushed when the buyer’s financing goes south at the last minute. This common event should never occur if the broker exercises proper qualification techniques and has the real world experience and expertise to handle your transaction. We close over 98% of the contracts we negotiate.
Follow-up involvement
We stay in close touch with the buyer for an extended period after closing. The first six months after closing are a critical time for the buyer and their continued success. Experience has shown that a few minor issues, if left unresolved, can develop into major dispute or worse yet litigation. The buyer is often more comfortable talking with us about any concerns and not wanting to appear petty or nitpicky. Early attention and resolution of any issues that arise after the closing will go a long way in maintaining a solid successful transaction and avoiding possible buyer default.
We promise we will not…….
……. Disappear upon receipt of our commission check; we are here to assist after the closing. We care about the future of your business and protecting any financial interest you have in the buyer’s continued success. We enjoy a substantial amount of repeat business and believe our continued involvement helps to protect all of us from frivolous litigation.