Cashing Out - Important Things to Consider Before Selling Your Business - Part 3

[Stacy L. Alario, FCBI]

What does a professional Business Broker and more importantly, a Certified Business Intermediary (C.B.I.)offer?

A professional Business Broker or Certified Business Intermediary (C.B.I.) will take the burden of negative aspects off the seller's shoulders and will know how to handle them more effectively. A lack of professional counsel often leads to disaster. Many times a seller is more concerned about saving attorney's and brokerage fees than surrounding themselves with proper counsel. Most Business owners who have sold, or tried to sell their own business, on their own later wish they had used an intermediary to handle all the complexities.

Frequently, the sellers have not thought about what they will do - or what their real financial needs will be - after the sale of their business.

When it comes time to sell - to make the seller's job easier and more effective - the right business broker will assist to determine the right buyer for a particular business. An experienced, professional broker will prepare and submit items such as wages, products, special licenses or talents required, fringe benefits, etc. and she'll present a mental picture of the business to a buyer, taking into consideration the buyer's financial needs.

For locating and qualifying prospective buyers, a good business broker uses computerized databases to access comprehensive lists of local, national and international buyers - all to increase the chances of selling a business at peak value.

Further, the broker can help the seller to understand that the selling price is dictated by the marketplace. Using essential marketing tools, the broker can then prepare a marketing strategy and offer advice. In fact, the broker will help the seller in all key aspects of presenting the business as effectively as possible and be a vital advisor during most stages of the negotiation - bringing to "the table" objectivity as well as negotiation skills developed through years of experience in the buying and selling of businesses.

A buyer also reaps the benefits of expert guidance dealing with a reputable business broker. No matter how large or small a business purchase is, the more information available to a buyer, at the appropriate time; the more intelligent all decisions will be made. Prospective buyers are interested in current and historical financial information, competition, and product information - and brokers can be an invaluable source of such information. Business Brokers prefer to talk to potential buyers in person. During a preliminary meeting in the brokerage office, the broker will typically ask the prospective buyer questions such as these:

1. Do you have the necessary funds to buy a business?

2. Is the cash readily available?

3. What is your time-frame for buying a business?

4. What are your expectations about the purchase of a business?

And so forth....

After this fact-finding meeting, the broker can then show the buyer businesses that are both feasible and that fit the buyer's requirements. Further steps the broker will lead the buyer through are as follows:

1. Since sellers are rightly concerned about confidentiality, the broker will ask for the prospective buyer to sign a non-disclosure or confidentiality agreement.

2. The broker will provide the prospective buyer with preliminary information about one or more businesses that potentially meet their needs.

3. The broker will arrange for the buyer to see the business at a time acceptable to the seller.

4. Once the buyer has indicated strong interest in a particular business, the broker can then schedule further on-site appointments.

5. When the buyer is ready, the broker will be the best source for answering questions, addressing concerns, resolving loose ends and offering their professional expertise in the business sale transaction.

Stacy L. Alario, FCBI and American Business Brokerage have been assisting buyers and sellers since 1979. If you are interested in confidentially buying or selling a business, please call them at [phone] or email Stacy at [e-mail]
www.americanbusinessbrokerage.org ...they sell businesses confidentially.