Business Sales January, 2009
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Business Sales
January, 2009
Company Profile
Help business people to buy, grow and sell companies
Serving Southern California owners and investors
Headquarters in Seal Beach
Experience in U.S., Europe and Asia
Expertise in mfg., distribution, retail and services
Licensed for business and real estate transactions
Partners in legal, financial & other areas
Professional member of CABB, IBBA, CAR, and NAR
ServicesCompany
SalesAcquisitionsExpansionStart-upReal estateValuationCheck-upMarketingPlanningCustom services
PartnersCorporations & LLCsTrusts & willsLeases & contractsAccounting & taxesInsurance & benefitsLoans & lines of creditEscrowsInvestmentsRelocationsOther services
Team Approach
CustomerBusiness Advisor
Marketing Manager
Advisors &Assistants
Owners/ Sellers
What is the history of you & your business?What are your key products & services?What is your annual gross & net?Who are your suppliers & customers?Who are your employees & competitors?Who are your partners & advisors?What are your risks & opportunities?How could the business grow faster?
Your Sale Opportunity
Why are you considering selling?How do your partners, family members or advisors feel?Have you tried to sell your business before?Do you already have a price in mind?If so, what is the price & how did you arrive at it?*What are your annual sales & income?How are the lease, operations, employees and market?Can you suggest potential buyers or how to reach them?How would you train the new owner?
* Some accountants use the “don’t want to lose the account” valuation method
Your Role in the Sale
Stay committed to the sale
Keep it absolutely confidential
Disclose all aspects of the business
Keep managing and growing the business
Price Factors
HIGHER PRICE•High sales & profit•Financial growth•Reported income•Books & records•Long lease/ low rent•Well-established•Loyal customers•Strong employees•Good systems•Seller financing•Adequate marketing time•Strict confidentiality•Strong business advice•Effective marketing•More qualified buyers•Effective negotiation•Experienced escrow
LOWER PRICE•Losing money•Financial erosion•Unreported cash•Few documents•Short lease/ high rent•New business•Unhappy customers•Employee turnover•No systems•All-cash required•Short listing period•Word gets around•Weak agent or FSBO•Token advertising•Few typical buyers•Poor negotiation•Inexperienced escrow
YourJob
OurJob
Preparation + Execution = Results
Results!
Preparation Execution
Marketing Plan
Buyers
Preparation
Business Profile
Price Analysis
Photographs
DVD
Tour
Marketing & Ad Plan
Financing Plan
Industry Research
Growth Plan(large businesses)
Video
Tour
BusinessInformation
Preparation
Execution
Results!Marketing Execution Escrow
Contact ourBuyer Leads
Ads onInternet
Ads inPrint
Lettersto Owners
Marketing Plan
Marketing Businesseswith Real Estate
Results!
BusinessMarketing
Contact ourBuyer Leads
Real EstateMarketing
BusinessEscrow
Real EstateEscrow
Buyers
Buyers will Want to See
Historical financial statementsTax returnsEmployee listsAccounts receivable agingFacility and equipment leasesEnvironmental reportsPension, profit-sharing, and all other benefitsUnion contracts or organization activityPending or threatened litigationCustomer listsOther important agreements
We prepare better
Industry Research
Growth Plan (for larger businesses)
Financing Plan
Marketing & Advertising Plan
Photographs and Video Tour
Price Analysis
Business Profile
TypicalReal Estate
Agent
TypicalBusinessBroker
YourBusinessAdvisor
Sale Preparation
We execute better
Help buyers prepare offers
Facilitate due diligence and escrow
Qualify buyers face-to-face
Direct mail to potential buyers
Advertise in print media
Advertise on business brokerage websites
Contact buyers in our database
Explain the process to you and the buyers
Provide written progress reports
Return your calls promptly
Maintain strict confidentiality
TypicalR.E. Agent
TypicalBizBroker
BusinessAdvisor
Sale Execution
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