The secrets of a business broker

 

Selling a Business

Selling your business is a detailed process that must be handled with care. Utilizing the services of American Business Brokers will ensure that you do it right the first time. Here are some of the advantages for you as a seller to work with American Business Brokers.

Seller Education

American Business Brokers will guide you through the process of selling a business. We will explain legal details, proper positioning and other details to ensure that the sale of your business is a good experience.

Large Buyer Base

We have an extensive database of qualified buyers. This will ensure that the buyers that we bring to your business are not "tire-kickers" but are actually prepared to make an offer on a business they like.

Confidentiality

We will handle the sale of your business with full confidentiality. This included having the buyers sign Non-Disclosure Agreements and using confidentiality when advertising or listing your business on the Internet or locally.

Negotiations

We will guide you in the negotiations process. This process can be tedious if you are inexperienced at this. Our team of brokers are highly-trained at negotiating these sales and do this everyday.

No Up-Front Fees

There are no up-front fees to you. When get paid only when we help you to find a buyer for your business. We are then paid a percentage of the total sale of the business.

Free Marketing Package

We will develop a Presentation Package for your business. This package will be used to market your business. This will include your financials, locations, history, ways to improve the business and much more.

Help Determining Price

We will help you determine the asking price of your business. This will use a simple formula based on assets, profits, owner salaries, real estate, and other key financial points of the business.

Seller Education

Selling your business can be one of the most important processes you will every go through. It is important that you are well educated in the process of what to expect. American Business Brokers is here to guide you through this process to better equip you.

Reasons Why Successful Businesses Are Sold

  • The Owner is retiring.
  • There are health issues.
  • There are partnership disputes.
  • The Owner may have family members who are relocating.
  • The Owner is tired or "burnt out".
  • The Owner does not want to upgrade.
  • The Owner can’t handle the business.

What Buyers Are Looking For

While it is important to be most concerned about your own needs, it is important to understand the needs of the buyers.

  • Provable Books and Records
  • Reasonable Price
  • Leverage and Terms
  • Living Wage
  • Furniture, Fixtures and Equipment
  • Lease
  • Training
  • Appearance
  • Convent Not to Compete
  • A Good Reason for the Sale
  • Time is of the Essence
  • No Last Minute Surprises
  • How The Process Works

We will begin with the Listing Contract. This contract gives American Business Brokers the right to sell your business and earn a commission from the sale of the business. During this process we will talk about the financials of the company to guide you in determining a fair asking price for your business. Please note that we will need complete financials to begin the marketing process.

Understand that when we are marketing your business that our buyers are looking at several other businesses that we are offering. What will make your business stand apart from the others? These are a few things you will need to think about.

Most businesses that sell today have some type of owner’s terms involved, that is, the seller is willing to take a note on the business. Usually the buyer will put 20% to 40% down, with the seller holding a note and the bank giving a loan. This looks good to the buyer that the seller believes in the business enough to hold some paper.

Imagine a triangle with three equal sides. Each corner has a label. The labels are Price, Terms, and Cash Flow. The triangle represents "The Deal" or the potential purchase. The deal can stand as long as it is standing on two of the three sides. If the price of the business is high, then the seller must be willing to offer good financial terms and must be making good money. If the business is not making good money then it must have a good price and good financial terms. Remember, a good deal has to benefit both buyer and seller.

We will then begin marketing your business and showing prospective buyers your business. All buyers have gone through the Buyers process and have been qualified. These buyers will have signed Non-Disclosure agreements with American Business Brokers to ensure that the sale of your business is kept confidential.

We will work with these buyers and you together to come to terms that will make everyone happy.

The Negotiations

Once we find a buyer that is ready to move forward with the purchase of your business, we will help that buyer put together the Purchase Offer. This offer will explain the terms, conditions, and pricing structure of the deal that the buyer would like. At this time the buyer must also put down an earnest money check with this offer as a sign of good faith.

We will then bring the signed contract to you for your approval. If you approve the contract you will simply sign and we immediately call the buyer and let him know that he is proud owner of a new business. If you do not like the terms then we will help you negotiate the deal to come up with something that fits well for you and the buyer.

Once we have a contract we will work with both the buyer and the seller to get all needed information and paperwork finalized to move to closing day. The closing is simply finalizing what has already been agreed upon, getting leases assigned, phone and electric in the buyers name, and exchanging the keys for a check.

On average the closing takes place within 4 to 6 weeks depending on the type of business.

Sell with American Business Brokers

American Business Brokers would like to have the opportunity to help you sell your business. We will provide you with the education, professionalism and confidentiality that you need to properly sell your business.

Please contact us with any questions about buying or selling a business.

[ Back to Top ]


Business Brokers   •   Mergers & Acquisitions   •   Businesses For Sale
Business Consulting   •   Franchise Opportunities   •   Business Valuations  

American Business Brokers
Phone: (888) 800-6898  Fax: (217) 347-3001

Members of:

     

© 2005 American Business Brokers. All Rights Reserved
Website Design by Radical Webs Inc