If you’re like a lot of entrepreneurs, you assume the value of your company will be determined by your industry and its size. While size matters, there are actually seven other factors that impact the value of your company more than your industry. In fact, after analyzing more than 30,000 businesses, The Value Builder System™ has discovered getting these seven factors right can lead to acquisition offers that are more than twice the industry average. Likewise, we have seen examples of companies getting less than half the industry average multiple because of a weakness in one or more of these seven areas. To see how your company scores, you can complete the Value Builder questionnaire questionnaire/business and get a report on how you’re doing in each area.
A professional business broker helps the business owner determine the true value of the business, and, more importantly, can help prospective buyers understand the reasons for such value and structure a sale that maximized the benefits of buyer and seller.
Three years profit and loss statements
Federal Income Tax Returns
List Fixtures and Equipment
Copy Current Lease with Landlord if applicable
Franchise Agreement if applicable
Names and Addresses of Lawyer and Accountant
Is Confidentiality important?
Only highly screened, pre-qualified Buyers that have signed a non disclosure agreement know that your business is for sale. This confidentiality allows you to maintain daily business operations and profits without disclosing your intentions to employees, customers, and vendors.
All Buyers are interviewed to determine their personal capabilites and appropriateness for your business...as well as their financial resources to purchase a business. Since most buyers are first time buyers we spend the time needed to help them understand the buying process and find the right business for them.
Sound working relations with employees, customers, suppliers and bankers are important factors to a company. Any premature indication of a possible change in ownership could disrupt these relations and weaken the company's competitive position. For these reasons, and many others, confidentiality is critically important at all stages. With the proper procedures, it is possible to minimize the risk of an untimely disclosure.
In every transaction, there is an appropriate time to reveal that a sale may be imminent. Proper timing of these sensitive announcements can contribute to a smooth transaction and reinforce the buyer's willingness to proceed to a closing.
A professional business broker helps to insure that all information about the business is kept confidential throughout the entire selling process until it is appropriate to reveal that a sale is forthcoming.
If you are a business SELLER, don't wait any longer to hold a completely free confidential meeting with us. We will be very glad to help you!
Establishing Fair Market Value: Review Timing: Marketing Strategy: Financial Expectations