Why Do I Need A Business Broker To Sell My Business?
There's much more to selling a business than simply publishing an ad and expecting buyers with pockets full of cash knocking on your door. Business should be properly prepared for sale and properly marketed. Finding the right buyer is a challenging task and direct result of high-quality professional marketing job. It becomes even more challenging because the business has to be presented to a broad audience, yet kept confidential. Buyers have to be professionally pre-screened, otherwise they will waste a lot of your time. Professional assistance can definitely save you a lot of time and money, and in many cases make a difference between selling and not selling a business. Global Business Group business brokers can handle all aspects of business sale and produce results.
How Can I Sell My Business And Keep It Confidential?
Global Business Group marketing team is trained in creating advertisements that perfectly describe target businesses without exposing them to prospective buyers. All buyers are required to sign Non-Disclosure Agreement, preventing them from speaking with your employees, customers, vendors, landlord or anybody else about the business being for sale. Our experience allows to measure buyers seriousness and qualification very early, therefore we won't offer any additional business information to unqualified individuals.
Can My Business Be Sold?
Practically, any business can be sold. The real question is for how much and how fast. Global Business Group brokers will help you to determine the right price and conditions of sale, and recommend changes that may be required in order to increase chances of selling the business. If we feel that your business can't be sold, it will be clearly stated.
How Much Is My Business Worth?
Global Business Group brokers will thoroughly analyze the financial documentation, lease terms, management, competition, current market situation and other business factors, and present the owner with suggested purchase price. Overpriced businesses will never get sold and the seller may lose a lot of time. At the same time, we don't want to leave any money on the table. We're trying to find a sweet spot, where a business looks like a bargain to potential buyers, yet can be sold for the highest possible price.
What Is Your Service Area?
Global Business Group primarily sells businesses throughout California, however, for larger transactions may be involved on national and international level.
How Long Does It Take To Sell A Business?
You can find the answer by reading this article.
How Will You Promote My Business For Sale?
Global Business Group (GBG) maintains regular subscription with major business listing services. The following marketing sources can be deployed to discreetly market your business.
- INTERNET - GBG will place non-specific, blind advertising for your business on a number of strategically placed Internet sites. Internet advertising campaign will be specifically tailored to provide the highest level of exposure to your unique business. Such customized campaign will be continually tracked through monitoring the number of hits and traffic to your ad. Refinements will be made, as needed, adjusting to shifting traffic patterns.
- PRINT MEDIA - GBG will use print advertising, as needed, to market your business. This type of marketing is used in selected cases for advertising to targeted audience through professional publication.
- DIRECT MAIL - Over the years GBG accumulated database of thousands of qualified potential buyers. Using our established relationship we contact the potential buyers who might be interested in your business. Both snail mail and email blasts can be used.
- REFERRAL MARKETING - In addition to directly contacting potential buyers, GBG has relationships with other business brokers and professional associations that can help with reaching broader audience.
What Documentation Is Required For Selling A Business?
It is very beneficial having all necessary business documentation prepared in advance. Here's a checklist of most frequently required documents:
- Profit and loss statements and balance sheets for the last 3 years and year-to-date
- Federal income tax returns for the business
- List of equipment included in sale
- Real property lease and related documents
- A list of loans, if any, against the business, with amounts and payment schedule
- Equipment lease documentation
- Franchise agreement, where applicable
- Average amount of inventory
- List of business advisers
Make sure the financial statements are as current and accurate as possible. If you're half way through a year, make sure you have last years figures, and tax returns, and also interim year-to-date figures. Pricing a small business usually is based on owner's discretionary earnings. They include net profit, owner's salary and benefits, depreciation, and other non-cash, avoidable and discretionary items.