Getting the Best from Your Broker

The expression, “actions speak louder than words” is particularly true in the case of business brokerage.  That’s why it’s really important for a Broker to do some very specific things, and not just talk a good game!

Your broker is selling more than the tangible assets of your business. They are selling 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 it.  The Intermediaries at BB&C bring clarity to the entire transition process by doing the following:

Act as a Consultant.  We educate you and the buyer in the various aspects of transition. Although we have been down this road a hundred times before, we never forget that you, perhaps, have not.  First-time buyers will need a lot of guidance, even if the seller does not, and we patiently provide it.

Prepare a Value Opinion.  We help you understand the value of your business before you even list it.  Since Cash Flow is the entire basis for valuing ,marketing, and selling most businesses this service is a must!  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.  ROI’s and lending scenarios are also considered.  We review our findings with you as a perspective seller, free of charge.  It’s in our best interest to do so.  We believe 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 the business will support its debt, and 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.  I am not talking about a one-page synopsis here.  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.  Most importantly, this high quality Prospectus significantly cuts the sales cycle and the due diligence process.

Carefully Screen Buyers.  BB&C isn’t just fielding inquires. 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 prudent and systematic about releasing information and maintaining strict confidentiality. Our system for screening and assisting buyers is too involved to detail here- but its something we take very seriously, and we have specific measures in place to insure that both the business buyer and seller are well served.

Market the Business.  “Marketing a business” and keeping it’s sale confidential are not mutually exclusive. BB&C uses a combination of discrete “blind ads” in newspapers, trade journals, websites 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.  We typically use direct mail and follow up with phone calls to contact these professionals.  Identifying buyer prospects and matching them with the right business is a time consuming, expensive process.  Since most of this burden is born by the Broker, be sure that the Broker you choose has the resources to devote to your business.

Help Buyers Obtain Financing.  If you think a buyer is going to come in with an “all cash” (meaning all their cash) offer- Wake Up!  It almost never happens.  Buyers want to leverage their available capital, so more than 90% of the transactions we close involve some form of SBA insured loan.  Obtaining an SBA insured loan is an involved and lengthy process.  Unless first-time buyers have someone experienced who is willing to help them, the process can easily outlast their resolve.

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 >>