Why use a Business Broker / Business Adviser?
A business owner may ask: “Why can’t I sell it myself?” There are several reasons why most owners choose not to:
• An owner representing himself cannot maintain anonymity and the lost confidentiality could seriously hurt the business.
• An owner may not be knowledgeable in current areas of law, accounting, taxes, and marketing of businesses.
• An owner typically does not have the ability or time to contact, screen and qualify serious prospects that will offer a fair price.
• An owner can lose focus on the operations of the business which can result in loss of value.
• An owner generally does not have the experience, knowledge, and negotiating skills needed to sell his company efficiently and
for the best price, particularly in a highly emotional negotiation such as the sale of a business where the buyer’s objectives are totally opposite of the owner’s.
Arizona Business Sales professionals are knowledgeable and skilled in profitable and timely business transfers.
Call us today to find out how we can help. (623) 295-9620
All Business Information You Provide Us With Is Safe
We understand that confidentiality regarding a potential sale of your company is paramount. We carefully screen potential buyers regardless of how sophisticated they may appear. All potential buyers complete a “Confidentiality Agreement” and are interviewed to determine their qualifications prior to any discussions. Many buyers are disqualified from time to time.
Considerations
The decision to sell your business is often a difficult and emotional one because of the profound personal and financial impact. Many different influences bring business owners to this decision, including:
• Exposure to business risks often aggravated by personal guarantee on loans.
• Possible failure of the business if one or more owners become seriously ill or disabled.
• Personal preference of the owners to retire.
• Divorce or dissolvent of partnership.
• Owner’s desire to pursue other business interests which may be more challenging or less stressful. Burnout.
• Lack of sufficient working capital.
• The company has evolved and there is a need for new skills, new resources, or a new philosophy to cope with new dynamics and changing economic forces, government regulations, and competition.These are all valid reasons. There are many other perfectly valid motivations for considering a sale and none of them should imply that the business is distressed or failing nor should it indicate a willingness by the owner to accept anything less than a fair price for the business.
The Process
We meet to explore whether you and our team are a good fit. If everyone is comfortable we provide you with a confidentiality agreement stating that we respect your right to privacy and confidentiality and we will do our best to ensure that no one on our team discloses anything to unauthorized parties. We will provide you with a document request outlining in detail everything we will need to proceed with the valuation process. Financial documents are just one of the many documents required to perform an accurate analysis. Our proprietary valuation tools frequently utilize multiple approaches to value. Generally within 5-7 days we will present you with our conclusions. Then you have a decision to make!
If you decide to move forward we will execute representation agreements and begin the process of developing an excellent marketing package and start the marketing process.
We recommend (almost always) that the marketing is “blind” meaning that your company’s name, address and other identifying characteristics is NOT included. Those disclosures can take place later after we screen and qualify buyers. All buyers are required to execute a NDA and a profile that details important attributes that we are looking for and these buyer attributes vary based on the attributes of the business. Net worth, liquidity, cash on hand, time frame and background / experience are just a few of the attributes we may be looking for.Once the qualified buyer has met with our team he can review your marketing package and preliminary financial information. If he is still enthusiastic we will arrange a meeting with you and a walkthrough of the facilities. We will always accompany all buyers to all meetings that you are involved in. Then the buyer has a decision to make!
Although the buyer may use his attorney to draft a Purchase Agreement we are well versed in drafting comprehensive agreements. Based on the buyers terms and conditions we will draft the agreement with all of the appropriate components, present it to the buyer for his review and after his / her execution we will present it to YOU our client.
We will handle the entire transaction from the initial introduction of the buyer through closing, including coordination with attorneys, accountants, landlords, leasing and utility companies, and title companies.
Fees
On the sale and acquisition side we work on a commission basis. Our commission structure is a really a success fee as we will only receive payment for getting you across the goal line. We are the only firm that offers a Flexible Fee structure that gives the seller the option of lowering the commission paid at closing or choosing a standard fee.
Buy and sell side advisory services are structured differently and generally have a reasonable retainer upon execution of a representation agreement and then a final payment only if a closing takes place.
Call today to have a confidential discussion with us regarding how our Flexible Fee structure will work for you! (623) 295-9620