The Truth, The Whole Truth!

[Stacy L. Alario, FCBI]

Ed Pendarvis, CBI
Charleston SC
Affiliates Committee Chair

The TRUTH is that business brokers help folks obtain "The American Dream" of owning their own business. We do that by listing and marketing existing successful businesses that for whatever reason, the present owner wants and/or needs to sell. We create and define the marketplace.

The TRUTH is that starting up a business is statistically scary, so we sell businesses that have already survived start up and have been making the present owner a living for several years.

The TRUTH is that we cannot sell a business unless we can get a buyer to buy a business. (And, a buyer is normally replacing an income by buying a business, and is scared of making a bad decision).

The TRUTH is that a good business broker has to develop, manage and maintain positive relationships between buyers and sellers (Tough--if not impossible--to do just by email or telephone. This is a face-to-face business).

The TRUTH is that even though the buyer thinks the value of the business is only found through the business' financial records; often times the compiled financial records are not complete, current, correct and accurate. And even if they are, they are greatly influenced by the seller's desire to minimize taxes.

Often times, the tax returns are a lie. The business did not lose $12,000 last year, it lost $12,000 based on the influence of tax laws.The TRUTH is the seller made a living and in fact has been making a living through the business for years.

The TRUTH is that the buyer really does not care only about the financials--what he really wants to know is, "If I buy this business- How much can I make"?

The answer to that and the TRUTH is threefold:

1) How much is the seller really making now in the business, as we recast out the influence of taxes and take into consideration how the seller does his books--how he provides his lifestyle or owner's benefit

2) Less the cost of buying the business, the debt service on any loans whether to third parties, SBA, a bank or the seller

3) Plus (very important), what the new buyer plans to do to grow and improve the business under his ownership = "How much he could make".

Our job as business brokers is to put together a deal: Price, Terms and Conditions that work for both seller and buyer, etc;, that works for both. (and normally the down payment is the critical issue for both).

The TRUTH is that if the buyer can put down $70,000 to $100,000 and buy a business that has an "Owner's Benefit", (SDE), of $70,000 to $100,000 and the business pays the debt service, that is a 100% return on the buyer's investment every year. Where else can you possibly get a 100% return on your $$$ ?

That's the great product that we sell and that's why it is called "The American Dream". Now the buyer has a "job for life" (job security); an opportunity to make more $$$, (most every big business started off as a small business), and something to sell should he want to later (you cannot sell your job).

And, the IBBA trains and educates the business brokers to a professional level that allows them to add great value to this process for all involved--"That's the TRUTH, the whole TRUTH and nothing but the TRUTH"!

Stacy Alario, FCBI and American Business Brokerage have been representing seller's in the sale of their businesses for over thirty years. For a confidential meeting to discuss your exit strategy for now or in the future, please call Stacy Alario at [phone] or email her at [e-mail]

American Business Brokerage, Inc.
...they sell businesses confidentially.
www.americanbusinessbrokerage.org