Many people will want to tell you the value of a business is strictly based on a multiple of this or that.  The Business Valuation is based on multiple key financial numbers, but it tends to be a range.  Whether the business falls on the lower end of that range or the upper end of that range is based on other non-financial factors.   For example, an absentee-owner scenario will have a positive effect.  A business with no employees, where everything revolves around the owner, will have a negative impact.  A business that requires significant travel, or requires selling every single transaction, has a lower multiple than a business in the same industry where all the customers come to them (i.e. no travel) and has monthly reoccurring revenue.  Even revenue levels affect the business value.  A business making $5 million in revenue will have a higher multiple than one making $100K in revenue.  So, we need to evaluate your financials, but we also need to know a lot about your business.  

Once we calculate the business valuation, we'll want to discuss with you further.  Not all businesses are worth trying to sell.  In some cases, you might just want to close the business and liquidate the assets.  In some cases, we might recommend an auction.  But, if the business has value as a business, we both owe it to the employees and the existing customers to find a path for the business to survive the original owner.  It also allows us to provide you a path and a means to exit the business and retire or pursue other interests.  This is a great time to discuss the selling process and what to expect.  If we both agree it's worth selling, we'll proceed with the listing agreement and creating the business profile information.  

 It allows you to concentrate running your business instead of trying to figure out how and where to advertise for buyers and get thru the process.  We already know the process.  We know what to expect and what to do next.  

It provides credibility to  your asking price.  We know how to calculate the business value based on industry and market standards, but also based on our experience in the market.  The price and the information we provide to the buyer are educated parameters.  

 We know where and how to promote your business, including email blasts to the over 4,000 people in our opt-in database.  We also know where to advertise and how to do so confidentially so people don't figure out which business is for sale.    

 We create a buffer between you and people who inquire on the business.  We can qualify them and protect your confidentiality.  We only release information to people that have signed a non-disclosure agreement to protect your business   

 We have all the forms and templates based on selling multiple more businesses over our history of being business brokers.  

 We attend all the meetings and negotiate the deal.  (Not every broker attends meetings, especially internet-based brokers.) 

 We help coordinate all the paperwork involved to facilitate the transaction, which is often a 2 step process. 

 We help the buyer find financing.  We know that not every bank is a good option.    

 Finally, we attend closing, make sure everything goes smoothly and congratulate everyone involved.  

We are very hands on.  There are several things that can derail a business acquisition, on both sides.  It helps to have a mentor to ask questions of or to know what options there might be.  We are personally invested to make sure it's successful as it is the only way we get paid.  

In most cases, we are against seller financing.  New SBA rules lowered the down payment requirement from 20% to 10% in January 2018.  For most businesses and buyers, the buyer will put down 10% and finance the rest.  However, certain scenarios, businesses or industries do lend themselves for the seller to provide some level of financing.  We can discuss what would cause it and why in some cases, it may be to your advantage.