Your Business Selling Journey Step-by-Step

1. Initiate the Process: Kickstart your business selling journey by scheduling an appointment with Jennifer Jacobs.
2. Prepare Essential Documents: Compile the necessary documents requested by your Business Broker in advance of your meeting.
3. Comprehensive Discovery: During your meeting, expect a series of in-depth questions that will help us develop a clearer picture of your business and determine the approach we will take to generate buyer interest in YOUR business.
4. Determine Market Value: Utilize proven methods, which considers discretionary income and expenses, to ensure your business is competitively priced.
5. Authorization for Representation: Grant Jennifer Jacobs the authority to represent you in the sale of your business through a Listing Agreement.
6. Tailored Marketing Strategy: Collaborate with Jennifer to craft a customized marketing approach for your business. You’ll have the opportunity to review and approve the listing’s marketing, advertising, and potential terms.
7. Vigilant Buyer Engagement: Jennifer will diligently oversee inquiries from potential buyers. This involves a critical step where buyers are required to sign a Confidentiality Agreement (NDA) to protect the confidentiality of your business information. Additionally, we will request that buyers provide proof of funds (POF)demonstrating their capability to proceed with the transaction. These essential steps help safeguard your business’s sensitive information and ensures that only serious, qualified buyers are engaged.
8. Facilitate Confidential Meetings: Your Broker will discreetly arrange confidential meetings between interested buyers and you, the seller.
9. Expert Deal Facilitation: Rely on your Broker’s expertise to assist in crafting and presenting offers. Beyond negotiation, our focus extends to strategic deal structuring, with a commitment to creating win-win scenarios for both parties involved. Our goal is to maximize value, address potential challenges, and ensure a smooth transaction process.
10. Seamless Transition: Jennifer takes the lead in managing the timeline from offer acceptance to closing, ensuring a seamless transition of ownership. This involves skillfully navigating interactions with potentially necessary third parties, including landlords, lenders, escrow officers, and transactional closing attorneys, to facilitate a successful and efficient closing process.

Market Price Analysis

Valuation is both an art and a science, where experience counts. A business broker can be instrumental in identifying your business’s hidden assets and arriving at an asking price that fairly reflects its value in today’s market. Your assets, inventory, income statements, property (if any), and equipment will be carefully considered, as will the intangible assets that make your business appealing. Proven methods of valuing and marketing will put your business in the best possible position to sell. We use a combination of valuation methods, which include taking into consideration not only your current income, but also your past financial history and future projections while adhering to industry standards and comparisons. Business Broker’s are some of the most highly trained professionals in the industry. Take advantage of a confidential comprehensive market valuation of your business today with obligation to list your business for sale.

Most buyers and sellers are going to need the services of a business broker unless they have friend or family that they can sell the business to, but even in that case, it is very discouraged because you still have contracts, closings, disclosing’s, liability releases and other agreement that you’ll have a hard time handling on your own.

The business broker primary role is that of a fiduciary (meaning a position of trust) for the business owner and/or new buyer. The broker can either represent the seller or the buyer or if disclosed and signed for, represent both parties.

Seller FAQ

What methods to you use to find a buyer for my business? Advertising methods are very important, and you should spend time understanding how they will attract potential buyers, however, it’s not the end all, be all question. Most successful brokers will have a list of potential buyers that they can reach out to and find possible interest from. Many not only have their own buyers list but share a buyer list with the other brokers in their office.

What valuation methods to you use to establish a selling price for my business

There are dozens of valuation methods, here are a few of the most common:

• Asset based valuation
• Market comparison valuation
• Income based valuation
• Rules of thumb formula
• Multiple of discretionary earnings
• Buyer test
• Market Multiples

What steps do you take to make sure that the highest level of confidentiality is maintained for my business? 

Most business owners, rightly so, are worried about publicly announcing their business is for sale. What will the employee think? Will they all leave? There are many other reasons that you should maintain total confidentiality. You not only don’t want employee to know prematurely but you don’t want competitors to know either. A competent broker will use legally binding documentation that is signed prior to releasing confidential information out about your company.

What steps will you take to only introduce me to qualified buyers?

A qualified buyer is someone who is ready, willing and able to buy a business. While technically the broker can only qualify if someone is ready and able, the willing part will come after they learn more about your business but is the broker’s role to make sure that they qualify the potential buyer before they introduce them to you. The broker should make sure the buyer meets some basic criteria:

• Honestly looking to purchase a business
• Has the motivation and personal commitment to purchase
• Has the financial resources to purchase or get a loan

What information do you need from me?

Here is a list of items you should have ready:

• Financial Statements (Profit & Loss and Balance Sheets for the last three fiscal years)
• Projected Financial Statement, (to date, for the current fiscal year)
• Tax returns for the last 3 years
• Commercial lease or rental agreement
• Franchise agreement – if you are a franchise
• List of assets, including fair market value.

But aren’t business brokers expensive?

It depends. Some sellers attempt to sell on their own and they usually end up coming back to the broker when they find out it is difficult for reasons such as:

• The seller doesn’t know how to value their business.
• The seller can’t justify the asking price using standard business appraiser practices.
• The seller typically has a hard time attracting potential buyers.
• The seller has a hard, if not, impossible, time maintaining confidentiality that his or her business is for sale.
• The seller has a hard time distinguishing between the potential buyers who are serious and those who are time wasters.
• The seller is typically unable to create a competitive atmosphere among potential buyers.
• The seller often doesn’t know how to evaluate offers or structure a business sale price and terms to make it as attractive as possible to new buyers.
• The buyer isn’t nearly as likely to trust what the seller says and the documents the seller provides unless provided by a third party such as a broker.
• The buyer and seller typically don’t have a lot of experience arranging financing for the purchase.
• The buyer and seller almost always have no experience bring the transaction to close.

How to Buy a Business for Sale

1. The First Step: Consulting a Business Broker

Once you’ve decided to take the leap into business ownership, consulting with a business broker is a wise move. Jennifer can guide you through the entire process, from finding the right business to closing the deal.

2. Defining Your Ideal Business During your initial meeting, you’ll discuss your goals, budget, and the type of business you’re interested in. Be as specific as possible. Consider factors like:

• Industry: What industry interests you?
• Location: Where do you want to operate your business?
• Business Model: Do you prefer a service-based or product-based business?
• Work-Life Balance: How much time are you willing to dedicate to your business?

3. Understanding the Financial Implications Be realistic about your budget. It’s essential to have a clear understanding of how much you can afford to invest. Remember, you may need funds for a down payment, closing costs, and working capital.
4. The Due Diligence Process Once you’ve found a business that interests you, it’s time to conduct due diligence. This involves thoroughly examining the business’s financial records, operations, and legal documents. Jennifer can help you navigate this process, ensuring you have all the information you need to make an informed decision.
5. Making an Offer Once you’ve completed your due diligence, you can make an offer to purchase the business. Jennifer will help you structure the offer, including the purchase price, terms, and any contingencies.
6. The Closing Process If your offer is accepted, the closing process begins. This typically involves:

• Signing Purchase Agreements: Formalizing the terms of the sale.
• Transferring Ownership: Legally transferring ownership of the business to you.
• Paying Closing Costs: Covering fees associated with the transaction.
• Obtaining Necessary Licenses and Permits: Ensuring you have all the required permits to operate the business.

By following these steps and working closely together you can increase your chances of a successful business acquisition. Congratulations on your new business venture! We’re here to support you every step of the way.