Ascend Business Brokers

Strategic Marketing Plans – Part 1

An essential part of selling your business is developing and implementing a Strategic Marketing Plan.  Part 1 of this series discusses the need to identify potential buyers for your business.  Later articles will discuss the methods used to target and attract specific types of buyers, as well as the role “timing” plays in implementing the marketing plan.

The goal of any Strategic Marketing Plan is to sell a business for the highest possible value.  The first step toward this goal is to identify the possible types or categories of potential buyers for your business.  This may seem obvious at first, but it is not possible to target specific types of buyers unless they have first been identified.

Identifying the maximum number of buyers translates into more buyer interest once the marketing plan is underway.  Higher interest from qualified buyers typically results in a better sale price for your business, which is the goal of any marketing plan.

Let's consider a restaurant as an example.  Buyers for a restaurant might include the following:

• Chefs and/or Employees of Restaurants
• Employee-managers of Restaurants
• Current Restaurant Owners
• Regional Chain Owners
• National Chain Owners
• Investors

In some cases, all of these categories may constitute potential buyers for a restaurant.  In many cases, focusing on specific types of buyers increases the chances of selling your restaurant for the highest possible value.

Whether you are selling a restaurant, a moving and storage company, a print shop, or a salon and day spa, the same principles apply. The very first step in any Strategic Marketing Plan is to identify the potential buyers.

Part 2 of this series will discuss some of the methods used to target specific types of buyers. 

Ascend Business Brokers, Massachusetts business brokers, assists owners in selling their businesses.  

                 

Chic Boston Hair Salon!

Ascend Business Brokers is pleased to be assisting one the highest grossing hair salons for sale in the county. This fabulously chic, award winning hair salon caters to an upscale clientele from one of Boston’s most desirable and exclusive locations.

For additional information, please visit Ascend Business Brokers.

Ascend Business Brokers assists owners in selling their businesses.

Selling Your Business, Part II

In this post, I am pleased to complete the two-part audio presentation entitled "Selling Your Business."

Part II of "Selling Your Business" resumes the discussion with the topic of Strategic Marketing Plans and covers the remaining steps leading to the successful sale of a business.

Click Below to Hear the Presentation:

Selling Your Business, Part II 

Should you have any questions or comments after listening to this material, I encourage you to give me a call or send an e-mail. My contact information is on the left sidebar, below my picture.

As before, should you wish to listen to the presentation at a later time, you may right-click on the link with your mouse and save the mp3 file to your computer.

What Can Business Brokers Do?

Business brokers are the professionals who will facilitate the successful sale of your business.  It is important that you understand just what a professional business broker can do – as well as what they can’t.  A business broker can help you decide how to price your business and how to structure the sale so it makes sense for everyone – you and the buyer.  A business broker can find the right buyer for your business, work with you and the buyer when negotiating, and during every other step of the way until the transaction is successfully closed.  A Business broker will also help the buyer in all the details of the business buying process, which often includes obtaining outside financing. 

A business broker is not, however, a magician who can sell an overpriced business.  Most businesses are saleable if priced and structured properly.  You should understand that only the marketplace can determine what a business will sell for.  The amount of the down payment you are willing to accept along with the terms of the seller financing can greatly influence not only the ultimate selling price, but the success of the sale itself.

If you are considering the sale of your business, call Ascend Business Brokers at 866.970.7050 and visit us at Ascend Business Brokers.

How to Determine Your Business' Worth

 

Here is an informative presentation discussing business valuation by Wells Fargo Business.

 

"How to Buy a Business, Part II"

This is Part 2 of the presentation "How to Buy a Business," primarily concerning legal aspects of the mergers and acquisition process.  The speaker is Michael Roberts, a senior partner at the law firm of Connelly Roberts & McGivney LLC located in Chicago.    

"How to Buy a Business, Part I"

This presentation, discussing how to buy a business, comes courtesy of Google and Joe McCaul, the owner of Joseph Associates, Inc.   

Why is Seller Financing so Important?

Surveys have shown that a seller, who asks for all cash, receives on average only 70 percent of their asking price, while sellers who accept terms receive on average 86 percent of their asking price.  That’s a difference of 16 percent!  In many cases, businesses that are listed for all cash just don’t sell.  With reasonable terms, however, the chances of selling increase dramatically and the time period from listing to sale greatly decreases.  Most sellers are unaware of how much interest they can receive by financing the sale of their business.  In some cases it can greatly increase the amount received. 

The Attorney Killed My Deal!

As both a business intermediary and a business attorney, I sometimes find myself in an awkward position when in a room filled with other business brokers.  As the telling of war stories progresses, it is only a matter of time until somebody loudly exclaims, “the attorney killed my deal!” [That being the “G” rated version.]  I usually just bite my lip when I hear this in conversation. 

 

In my experience, an attorney (or for that matter an accountant) never recommends that a deal be terminated for no reason.  In most cases, the deal had been structured in a way that was disadvantageous to the client from a business or tax perspective.  This happens most often when a client fails to involve his professional advisors during the planning stages of a transaction (sometimes at the urging of a broker trying to emotionally commit the principal before involving his professional advisors).

 

Whether you are buying or selling a business, your best chance of structuring an advantageous deal is during the planning stages.  So involve your professional advisors at the earliest possible stage.  Ignore contrary advice, even when it seems to come from credible sources.   

What Happens When There is a Buyer for My Business?

When a buyer is sufficiently interested in your business, your business brokers will help in the preparation of an offer or proposal.  This offer or proposal may have one or more contingencies.  Usually, they concern a detailed review of your financial records and may also include a review of your lease arrangements, franchise agreement (if there is one) or other pertinent details of the business.  The buyer’s proposal will be presented to you for your consideration.  You may accept the terms of the offer or you may make a counter-proposal.  You should understand, however, that if you do not accept the buyer’s proposal, the buyer can withdraw it at any time.

Business brokers should submit all offers to you for your consideration.  At first review, you may not be pleased with a particular offer; however, it is important to look at it carefully.  It may be lacking in some areas, but it might also have some positive points to seriously consider.  There is an old adage that says, “The first offer is generally the best one the seller will receive.”  This does not mean that you should accept the first, or any offer – just that all offers should be looked at carefully.

 When you and the buyer are in agreement, your business broker should work with both of you to satisfy and remove the contingencies in the offer.  It is important that you cooperate fully in this process.  You don’t want the buyer to think that you are hiding anything.  The buyer may, at this point, bring in outside advisors to help them review the information.  When all the conditions have been met, final papers will be drawn and signed.  Once the closing has been completed, money will be distributed and the new owner will take possession of the business.