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We offer a complete range of professional business brokering services to owners who want to sell their business, including value enhancement and valuations.
For the business owner who does not want to deal with the standard broker commissions of 10-12%, we offer our money saving service. This allows a seller to avoid expensive broker commissions and restrictive sales agreements, while availing himself/herself of all of the expertise and resources of experienced business brokers like
Southwest Business Advisors.
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Receive the Help You Need
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to Buy or Sell a Business
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Based on the typical business sale transaction, our services will include the preparation and execution of each of the following steps:
Step 1: Develop and implement an exit strategy.
The initial step requires that you develop a clear understanding of why you are selling the business and what is for sale.
Formation of Selling Strategy:
- Articulating Seller's Reasons for Selling.
- Do You have a Saleable Business?
- Choosing the Best Time to Sell.
- What is For Sale: Company Assets or the Entity?
- Key Legal Issues.
- Selection of Seller's Advisory Team's Attorney and CPA.
- Preparing the Business For Sale.
- Our Recommendations to Seller.
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Information Required from Seller:
- Company Profile
- Financial other Key Documentation
- Presale Checklist
Step 2: Structuring the Sale.
A Each of these issues must be considered before listing the business.
- Assets vs. Entity Sale
- Lump Sum Payment vs. Seller Financing
- Doing Future Work for the Business
- Noncompete Agreements
- The Future of Key Employees
Step 3: Determining the Fair Market Value of the Business.
Understand that in practical terms, the worth of the business falls into a range of values, will give the seller greater confidence that will sell for a reasonable price. These diagnostic and analytical tools are used to evaluate strengths and weaknesses, and to determine if changes to the business would affect the price.
A Recast of your company's financial statements.
- Capitalization Rate.
- Seller's Discretionary Earnings / Cash Flow).
- Discretionary Earnings Method.
- Ratio Analysis.
- SBA Debt Service Ratio Analysis.
- Recommendations to Seller.
Depending on the size of the business and the seller's strategy, an independent valuation of the business by certified business appraiser may be advisable. We are affiliated with quality professionals who provide turnkey service for business valuation and appraisal reports. The fee may vary depending on nature of the business, and the completeness and accuracy of its financial records.
Step 4: Seek Bank Financing (Optional).
If Steps 2 indicates the business has a strong enough cash flow (SBA Debt Service Ratio Analysis), Southwest Business Advisors would be prepared to approach selected area banks, in behalf of the Seller, in order to seek pre-approval for an acquisition loan for a qualified buyer.
Step 5: The Sales Memorandum.
This crucial step involves presenting the business for sale to prospective buyers, wherever they may be. This Document is meant as an accurate and comprehensive picture of the company, to communicate the company's history, product lines and/or services, current financial position and projections, methods of operation, and marketing and distribution. Although this document deals with the company's strengths and weaknesses, it is a selling document written to give prospective buyers the information they need to make a decision to purchase. A Major sections of the sales memorandum include:
- Introduction
- Description of Business Operations
- Products / Services
- Facilities
- Location
- Market
- Staff/Personnel
- Equipment List
- Financials
- Projections
As part of our service, Southwest Business Advisors will prepare a draft of this document for the Seller's approval. The Seller is responsible for providing all relevant information required.
Step 6: Marketing the Business.
Once the Sales Memorandum is prepared and approved by the seller, Southwest Business Advisors will list the business for sale on the two leading industry websites.
The Seller will be provided with the following documentation:
- Confidentiality Agreement
- Buyer Financial Disclosure
- Buyer General Disclosure
- A Sellers Disclosure
Step 7: Negotiations to Close.
The Seller will be provided with personal consultation, as well as necessary documentation during this phase. It is, of course, highly recommended that the Seller seek the counsel of his or her attorney and CPA during negotiations and the closing of the sale.
- How to Determine if the Buyer is Serious.
- How to Justify and Support the Price and Terms Established in Step 2.
- How to Prepare for the Due Diligence by Buyer.
- How to Negotiate the Details of Your Transaction.
- A Closing the Sale.
Documentation to be included to the Seller:
- Letter of Intent.
- Due Diligence Checklist.
- Purchase Sale Agreement.
- Release of Contingency.
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Call us at (866) 367-2960 to learn more about how
to buy or sell a business without the high commission fees.
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