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International Business Brokers Assoc.

Mergers & Acquisition Source

Assoc. For Corporate Growth

Selling a Business

     Selling a business is a very unique process and very different than selling real estate. Unlike the real estate sales process, there are no centralized multiple listings of buyers or sellers of businesses. Another major difference from the real estate process is the diverse complexities and uniqueness from company to company which have to be taken into consideration. We feel our job as a business broker encompasses several facets.  Included are; educate the seller on current market conditions as they relate to their company, make the company more attractive for sale, write seller profiles that the buyers would find attractive, locate qualified buyers using our proprietary computerized data base of buyers located throughout the United States, monitor and smooth a transaction’s progress, and sometimes just simply provide a sounding board to bounce your confidential thoughts off of.

     Many times the owner has not sold a business before or has acquired his/her knowledge second hand. Still, the most frequent question from sellers is “What can I get for my business?” even though the sellers already have a figure in their head. From our experience, one of the biggest misconceptions the seller has is how the value of his company is determined. We always remind sellers that the market sets the price and that they set the terms and timing. So when is the ideal time to sell the business and get the most value? Obviously, when everything is perfect, this includes the following items:

  1.  When the business is ready,

  2.  When the owner is ready,

  3.  When tax laws are favorable,

  4.  When the industry is in favor,

  5.  When interest rates are low, and

  6.  When credit is easily available.

     As one can see the seller controls only a minor part of the whole equation. However, one thing you can count on is that a business will have more value and be more marketable when it is running smoothly and when a transition team is present. Even though you may not plan to sell your business for years, we suggest that you always have your business ready for sale. Because buyers always review several years of historical data, the year of sale is not the time to clean up your company and its financial statements. Call us to help start getting you and your business ready.

    The selling process can take from 90 days to years. It has been our experience that most transactions start rather abruptly due to some unanticipated event. Even though you may not think now is the time to sell, give us a call and we can provide you with more information so you can make an informed decision regarding your options. For example, some owners like to cash out slowly by maintaining a smaller equity interest and cut down on work hours, while others would like to “cut and run”. We have specific buyers who can satisfy your particular requirements.

    We encourage you to call us to see what options are available to you in your unique situation. We do not charge for this initial consultation. Confidentiality is key in our business; our conversation will not be discussed with anyone.   

                        Call us at 716-675-8258                        Email President at Larry@ValueFindersInc.com.        Copyright © 2013 Value Finders, Inc.