- December 20, 2013
- Posted by: Business Brokers & Consultants
- Category: Seller Articles
Business brokers sell more than the tangible assets of your business. They sell its Cash Flow. Moreover, they are typically selling it to a first time buyer, someone who is unfamiliar with the concept and may have a hard time appreciating its value. The Intermediaries at BB&C bring clarity to the entire sales process by doing the following:
Act as a Consultant. We have been down this road a hundred times before, but we never forget that you have not. First-time buyers and sellers need a lot of guidance in the various aspects of transition. Even if one, the other, or both parties have been through the process before, we provide insights that come from decades of experience.
Prepare a Value Opinion. Before listing, BB&C confidentially prepares a detailed value opinion of your business. It considers Historical Discretionary Earnings (Cash Flow) against the actual sale price of similar businesses sold nationwide. We take into consideration ROI’s and lending scenarios, then review our findings with you as a perspective seller, free of charge, because you deserve to know what you can expect from the market up front. If you decide to list with us, we use this information to help buyers understand how your business will provide them with a fair return on their investment.
Prepare a Marketing Prospectus. BB&C prepares a complete prospectus that can be presented to qualified buyers (under Non-disclosure Agreement) and lenders alike. We take the time to fully understand key aspects of your business and formalize them in a comprehensive report. This understanding of your business enables us to properly represent it to buyers and lenders alike.
Carefully Screen Buyers. We take the time to meet with buyers, understand their requirements and financial capabilities. We are diligent about matching buyers with businesses that are well suited to their skill set. We are also prudent and systematic about releasing information and maintaining strict confidentiality. Our system for screening is something we take very seriously. We have specific measures in place to insure that both the business buyer and seller are well served.
Market the Business. BB&C uses a combination of discrete “blind ads” in trade journals and websites, social media and industry related message boards. Blind Ads offer just enough information to interest perspective buyers, but not enough to identify the specific business. We also draw from an internal database of perspective buyers and professional contacts. Identifying buyer prospects and matching them with the right business is a time consuming, expensive process.
Help Buyers Obtain Financing. Savvy buyers want to leverage their available capital, and first time buyers often don’t know where to obtain financing. BB&C has long-standing relationships with cash flow lenders, and we are intimately familiar with the SBA backed loan process. More than 90% of the transactions we close involve some form of SBA insured loan, but obtaining these loan is an involved and lengthy process. It can outlast the resolve of many first-time buyers who don’t have help. We coordinate with the lenders, buyer and seller to obtain all the required paperwork
Over the past 15 years, BB&C has been bringing clarity and closure to business sales in a broad range of industries. To learn more about our process and historical success visit our Referrals & Completed Transactions page >>