Why Choose a Broker?
In a perfect world, a Business owner turns 64 ½ years of age, thinks about
enjoying the fruits of his labors.
Simultaneously, a firm in the same industry from a neighboring
state seeks to expand and contacts the potential retiree.
They meet, look over the operation, study the books, shake
hands and the new owner hands the seller a cashiers check
for the purchase price. The seller then turns over the keys
and heads for Hawaii.
In real life, an owner begins thinking about retirement or changing career paths and generally discusses his plans with his legal and tax advisors. Then the questions begin . . .
What is this business worth? Who would buy it? Where is the buyer? How do I find him? How will I sell it without my clients, employees, competitors, suppliers, landlord, and bankers finding out? How will I know when I looker is a buyer? How much information do I give out and when? How will I find time to do all that and still keep my business functioning?
Guidance in this process is the value of a professional business broker.
A professional broker understands a seller's needs, as well as the buyer's wants and manages the sales process through its completion.
A professional broker analyze the market value of the business.
A professional broker will intelligently communicate with the accounting staff or your CPA and assist in unraveling the true earnings or "discretionary cash flow" available to a buyer before taxes and debt service. That cash flow combined with fair market of assets is a necessary ingredient in the asking price and value of a business.
A professional broker will act confidentially and will not reveal the identity of your business until potential buyers have been pre-qualified for financial capability and necessary business skills.
A professional broker, after screening and securing a non-disclosure agreement, will arrange to present a comprehensive package including a business overview, equipment lists, financial reports, leases, competitive assessments, and other reports as necessary. A showing can be arranged at a time that is convenient to the seller when customers and employees are not present, thus keeping the process confidential.
A professional broker will work cooperatively with attorneys, accountants, landlords and other third parties.
A professional broker has preliminary knowledge of requirements of lenders which buyers must meet. The broker can lead the buyer to such sources