Frequently Asked Questions
Q. I saw a business for sale on your site and want more information, what’s next?
A. It’s simple. Call or email and we’ll help. We’ll need a confidentiality agreement with your signature and once received, we’ll send the information.
A. Business owners sell a company for a variety of reasons. It’s important that you (the buyer) know why a particular business is for sale and be comfortable with the answer. Retirement is one of the most common reasons. Others include health, burnout, death in the family, divorce, disability, and other business interest.
A. There are many factors that determine the value of a business. Earnings, financing, terms, assets and deal structure are a few of the most important. The true value of a business is determined in the marketplace between a willing buyer and a willing seller. Simply put; the value of a business is the equilibrium of Price, Terms and Structure. Contact us today, we are happy to answer your questions about how to value a business.
A. It’s very important that buyers and sellers understand exactly what discretionary earnings are. It’s what buyers want to buy and sellers should have to sell. The short answer is; “the true benefit ($) to the owner” or more properly stated: Discretionary Earnings are the sum of earnings before compensation available to a working owner/manager, depreciation and amortization, interest expense, owners benefits and expenses that are “one time” or extraordinary which are not representative of the continuing operation of the business or are discretionary to the owner and/or primarily for the owners benefit. All entries into a discretionary cash flow ledger must be documented.
A. Yes. Simply send us a message with the type of business you are interested in purchasing and we will contact you you regarding businesses for sale that may fit your profile. Please include your email address.
A. Of course, simply call or email and ask for Charlie Cole. He will be glad to speak with you.
A. The object of a Business Valuation Engagement is to express an opinion as to the fair market value of the operating assets of the subject company as of a certain date. Business Valuations are often used by professional business brokers, lending institutions and professionals providing advice in law, accounting, insurance, financial planning, stocks and bonds, gift and estate tax planning and most commonly, contemplation of sale of a business. We believe this process to be extremely important requiring a certain expertise thus it should be completed by someone who is not only certified to do business valuations, but also has experience in selling businesses. This is not a place to cut corners in the sale or purchase of a business. Ask the person or firm you’re considering how many valuations they have done as well as their experience in selling businesses.
A. Theres a huge difference! The most obvious being the training and expertise required to represent a buyer or seller in a business acquisition. Real estate agents simply do not have this expertise. Why would they? Its a completely different occupation. Businesses have many moving parts such as inventory, non-competes, allocation, employees, customers, AR, etc., whereas with real estate, it’s just one simple asset to sell and the title company does the majority of the work. Real Estate Agents take “bizop” listings because many real estate firms use a graduating pay scale to compensate their agents. In other words, agents receive a higher commission share when they have more listings which is why they will take a listing at any price without any experience. Always ask what certifications and experience the broker has and check their website to determine what they specialize in?
A. Primarily, to gain access to his/her buyers and transaction experience. We believe there are many reasons. Here are a few more considerations.
Business Brokers work with buyers and sellers in establishing a price for the business.
Business Brokers are skilled at marketing businesses confidentially to protect from harming the relationship with employees, suppliers, competitors and customers.
Business Brokers prepare a marketing strategy to maximize the price.
Business Brokers are skilled at negotiating all aspects of the sale including deal structuring, non-compete agreements, consulting agreements, seller finance notes and allocation of purchase price to name a few.
Business Brokers interview, screen and qualify prospective buyers and sellers.
Business Brokers market the business through many different methods (not just the local MLS) including our own database of buyers, the Internet, our network of other brokers and industry experts, trade publications and other sources.
Business Brokers market businesses for sale on a national and international basis.
Business Brokers work with outside advisors to help make sure the transactions progresses smoothly.
Business Brokers have access to lenders who can pre-qualify buyers and sellers.
Business Brokers have a database of experts relating to the sale of businesses.