Seller Information

   

COMMONLY ASKED QUESTIONS OF THE SELLER

Questions:

  • How do you reach qualified buyers with complete confidentiality?
  • What information will a buyer require?
  • How do you evaluate your business? What is it worth?
  • How will the seller financing enhance the value of the business?

The Answer:

The Broadway Business Group
(Your Professional Business Broker)

We will:

  • Prepare a professional evaluation of your business to determine its fair market price.
  • Prepare an offering portfolio on your business and design a marketing plan.
  • Directly market your business through our national network of over 475 offices.
  • Directly market your business through Business Brokers of Florida and International Business Brokers Association.
  • Place your company on at least six inter-net sites.
  • Handle the negotiations when an offer to purchase is obtained and see the transaction through the closing process.
  • All Confidentially.


CONFIDENTIALITY

Business Owners Receive
CONFIDENTIAL SERVICE


Thereby Addressing Their Concerns With Respect To:

  • Employees
  • Suppliers
  • Creditors
  • and Customers

While Guarding Against Rumors Initiated By Over Zealous Competitors


BUYER SOURCE

  • Affiliate Brokers, Representing A Wide Spectrum Of Diverse Buyers, From Hundreds Of Geographical Areas Of The United States, Are Submitting Additional Qualified Buyers To The Network Database On A Continuous On-Going Basis.
  • These Buyers Are Actively Seeking Good Viable Businesses On Local, Regional And National Levels.
  • A Significant Number of These Buyers Are Willing To Relocate Upon Acquiring A Business.
  • Owner Financed Businesses Are Vigorously Sought By Most Buyers.


BUYER DATABASE

Buyer Requests For Acquisitions Are Received From Hundreds Of Affiliate Brokers Nationwide

These Include:

  • Executives From Corporate America
  • Corporations
  • Investment Groups And Diversified Investors
  • Corporate Executives Taking Retirement Forced By Down-Sizing


BUYERS MARKET

  • 28% Being Investment Groups And Corporate Acquirers
  • 2% Being Professional Buyers
  • 70% First Time Buyers Largely Out Of Corporate America


BUYERS REQUIREMENTS

Buyers Expect A Business To:

  • Pay Debt Service
  • Pay Owner/Manager Salary
  • Yield Interest Income On Down Payment
  • Leave A Safety Cushion For Contingencies

Buyers Consider A Business Meeting This Performance Standard As Being A Good Viable Business

MASTER BUSINESS PROFILE

To Sell A Business, Buyers Must Be Placed In A Position To Make Informed Decisions

This Will Require:

A Master Business Profile

To Include:

  • Business Activity
  • History
  • Sales And Earnings
  • Marketing Strategy
  • Employees
  • Assets
  • Facilities
  • Location
  • Owner Reason For Sale


VALUATION REPORTS

Business Valuations

Reflect:

  • What A Business Owns
  • What A Business Earns (True Cash Flow)
  • Recasted Financial Statements
  • Recasted Value Of Assets
  • Intangible Values
  • Goodwill Values
  • And The Weighted Results From Nine Value Methologies In Arriving At The Best Combination Of Price And Terms

TRUE CASH FLOW

Accounting View Plus
Discretionary Expenses
Reflects An Economic View

ACCOUNTING VIEW
Reflects "Net Profit" based upon accounting practices consistent with I.R.S. rules
and regulations.

ECONOMIC VIEW
Adds "Discretionary" business expenses back to net profit

CASH FLOW
"Net profit" plus "Discretionary" expenses equal the true cash flow of a business

Buyers Purchase "True Cash Flow"


TERMS INFLUENCE VALUE

Cash Vs. Owner Financing

Lower Down Payments:
Bring Higher Prices And More Buyers

All Cash Or High Down Payments:
Brings Lower Prices And Fewer Buyers
Lower Down Payments

Examples:

100%
90%
85%
70%
60%
50%
50%
33%
20%
40%
Down
Down
Down
30%
All
Higher
Better
Best
20%
Cash
Price
Price
Price
10%
Plus
Plus
Plus
5%
Interest
Interest
Interest
0%
Income
Income
Income

 

TERMS

Owner Financing Not Only Justifies Higher Selling Prices But Often Defers Taxes On Profits While Earning Interest Income.

WHEN MARKETING A BUSINESS

Higher Requirements For Cash Outlay Limits The Number Of Buyers.
This Example Further Amplifies The Need For Careful Planning In Structure
And Terms Involving The Offer To Sell.

Examples:

  • 10% will have $500,000
  • 30% will have $300,000
  • 60% will have $200,000
  • 80% will have $100,000
  • 100% will have $50,000


BUYER INFORMATION

  • Sellers Must Be Informed
  • Comprehensive Valuation Reports
  • Explain Value And Justification For Purchase
  • At The Recommended Price
  • The Vast Majority Of Listings
  • Are Sold
  • As A Direct Result
  • Of Comprehensive Valuation Reports

REPORTS ARE COMPLETED BY

BOARD CERTIFIED BROKERS

If you have any questions regarding the buying or selling of a business please contact us by E-mail or see our Contact Us page for more information.