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A
lot will depend on the motivation of you |
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We
will begin with the Listing Contract. This contract gives American Business
Brokers the right to sell your business and earn a commission from the sale of
the business. During this process we will talk about the financials, state of
the industry of your business, market conditions and the history of the company
to guide you in determining a fair asking price for your business. Please note
that we will need a complete financial picture to begin the marketing process.
Understand that when we
are marketing your business that our buyers are looking at several other
businesses that we are offering. What will make your business stand apart from
the others? These are a few things you will need to think about.
Each corner has a label. The
labels are Price, Terms,
and Cash Flow. The triangle represents "The
Deal" or the potential purchase. The deal can stand as long as it is standing
on two of the three sides. If the price of the business is high, then the seller
must be willing to offer good financial terms and must be making good money.
If the business is not making good money then it must have a good price and good
financial terms. Remember, a good deal has to benefit both buyer and seller.
Most businesses that sell today have
some type of owner’s terms involved, that is, the seller is willing
to take a note on the business. Usually the buyer will put 20% to 40% down, with
the seller holding a note and the bank giving a loan. This looks good to the
buyer that the seller believes in the business enough to hold some paper. However,
this is one of many options that are available to you as a seller.
A lot will depend on the motivation
of you - as a seller and how fast you want to sell the business. Sometimes
a reduction in price with the Buyer paying cash is a better situation. But most
of all keep in mind that you as the Seller has complete control over the selling
process. You are the one that decides whether you will or will not accept an
offer. The role of American Business Brokers is produce and present to you options
in the form of offers and only you can decide based on the timing and quality
of the offer if and when you will accept the offer.
- One of the services we offer is to help the owner of the business determine
a market valuation of their business.
- After a market valuation has been determined by the owner and American Business
Brokers we then move to the marketing of the business. The process that we use
to market a business is very detailed. To begin with we become very intimate
with the workings of the business to thoroughly understand it. You can't sell
a business without understanding it and how it works. We will do an in depth
interview to obtain the needed information. After we have received the needed
information about the business, we will then compile and complete a business
profile of the business. The business profile will include the following information:
- History & Background
- Location & Area
- Physical Assets
- Operation of the business - Employees
- Working Conditions
- Competition
- Skill Level Sought
- Owners Reason for Selling
- Offering Price & Terms
- Financial Statements
- As you can see this is a very in depth report
- that is completed before the business is marketed. After the business profile
has been completed then the business will be ready to market for sale. We will
then begin to market the business using a combination of methods.
When an inquiry to the marketing has been received, we then begin the process
of qualifying the customer. Only after the customer is qualified will we proceed
with the process. We then require the customer to sign a confidentiality agreement
before they are allowed to review the business profile. The sale of a business
contains very confidential information and should be treated in the up most confidence.
- Upon the signing of confidentiality agreement
- the customer is then allowed to review the business profile package. It is
our obligation to answer as many of the customer's question that they may have
before involving the seller. Therefore allowing the seller to do what they do
best and that is run their business. Selling a business can be both distracting
and an adversarial situation. A trained and professional intermediary knows how
to bring the buyer and seller together and complete a smooth transaction.
The process outlined above has proven very successful. When a business is packaged
and marketed in the proper manner the odds of it selling quickly are increased
enormously.
- The Negotiations
- Once we find a buyer that is ready to move forward with the purchase of your
business, we will help that buyer put together the Purchase Offer. This offer
will explain the terms, conditions, and pricing structure of the deal that the
buyer would like. At this time the buyer must also put down an earnest money
check with this offer as a sign of good faith.
We will then bring the signed contract to you for your approval. If you approve
the contract you will simply sign and we immediately call the buyer and let him
know that he is proud owner of a new business. If you do not like the terms then
we will help you negotiate the deal to come up wit
- Once we have a contract
- We will work with both the buyer and the seller to get all needed information
and paperwork finalized to move to closing day. The closing is simply finalizing
what has already been agreed upon, getting leases assigned, phone and electric
in the buyers name, and exchanging the keys for a check.
- Sell with American Business Brokers!
- American Business Brokers would like to have the opportunity to help you
sell your business. We will provide you with the education, experience, professionalism
and confidentiality that you need to properly sell your business.
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