Ascend Business Brokers

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 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.    

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. 

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.