Business Transaction e-News
Business Owners Source for Mergers & Acquisitions


by Scott R. Perry, Business Broker

Sunbelt Logo
Sunbelt Business Brokers of Texas
1660 S. Stemmons Frwy, Ste 260
Lewisville, Texas 75067

Phone: (972) 219-6961
Fax: (972) 353-9580

Email: sperry@TexasBizSell.com
Web Site: www.TexasBizSell.com

Greetings:

Please allow me to introduce myself and inform you of the services my firm provides to many business owners like yourself. I am providing this information for you in the event you are planning on retiring or otherwise transferring the ownership of your business now or in the next few years.

Preparation to sell your business does not happen overnight. Proper planning can maximize the value of your business.

We can provide planning assistance to you or any other business owner that may be looking at developing an exit strategy. I am not writing to try and convince you to sell your business. Although it's a great time to sell a business, it's also a great time to own a business. If there are circumstances in your life that make this the time to sell, I am prepared to provide the confidential and professional services you need for a successful transaction. When you decide the time is right to sell your business you should expect the following:

Confidentiality
The sale of your business should remain completely confidential until you are ready to inform the people who need to know, when they need to know it, and not before.

Professional Qualifications
I am a Certified Business Intermediary as designated by the International Business Brokers Association, the world's largest organization of business intermediaries. Additionally, I am a member of the Texas Association of Business Brokers and a licensed real estate agent with the Texas Real Estate Commission. These certifications are the result of extensive experience, education, training and an agreement to abide by the Code of Ethics required to maintain these prestigious designations.

If you are thinking of selling your business in the future, I would like to meet with you and discuss the planning process. Planning your exit strategy now will maximize the value of your business in the future.

WELCOME!
Welcome to Business Transaction e-News - the resource for bringing buyers and sellers together. We are here to serve you -- whether your looking to buy a business, sell your business, grow your business by acquisitions, or to determine the value of your business, we're here to develop business strategies to maximize the value of your company. We'd love to hear from you -- send us your comments to sperry@TexasBizSell.com Please include your name, title, company name, and city with your submission. Due to security concerns, we are unable to accept emails with attachments.
 
Business Tips
How long will it take to sell my business?

It generally takes, on average, between five to eight months to sell most businesses. Keep in mind that an average is just that. Some businesses will take longer to sell, while others will sell in a shorter period of time. The sooner you have all the information needed to begin the marketing process, the shorter the time period should be. It is also important that the business be priced properly right from the start. Some sellers, operating under the premise that they can always come down in price, overprice their business. This theory often "backfires," because buyers will refuse to look at an overpriced business. Even when the price is later moved down they will not look at the business because now they suspect something is wrong with the business. It is known that the amount of the down payment is the key ingredient to a quick sale. The lower the down payment, (generally 40 percent of the asking price or less), the shorter the time to complete a successful sale. A reasonable down payment also tells a potential buyer that the seller has confidence in the business's ability to make the payments.

 
ADDING VALUE TO YOUR BUSINESS
If you are considering selling your business, remember that there are positive factors that influence value and those that detract from it. Looking at your businss from a buyer’s perspective is important since a prudent buyer will be adding or subtracting these various factors when arriving at an asking price. It is perhaps more important to recognize when the buyer arrives at a price at which he or she will leave the negotiations. Buyers naturally try to buy the business at the lowest price possible, however most also have a top price over which they are probably not willing to go. Here are some of the “high value” indicators as well as some of the “low value” indicators to consider when evaluating your business.

Indications of High Value
• High sustainable cash flow
• Room for the business to grow
• Anticipated industry growth
• Competitive advantage – location, area, etc.
• Business niche
• History and reputation
• Low failure rate in the industry
• Modern, well maintained facility

Indications of Low Value
• Customer concentration on a few major customers/clients
• Reliance on owner
• Poor financials
• Distressed circumstances
• Few assets
• Product or service sensitivity
• Poor outlook for the industry – regulations, foreign competition, price cutting, discount stores, etc.

Considering the above factors and how to address them can help a seller look at the business through the eyes of a potential buyer. A professional business broker can help the business owner sort through the many areas that buyers consider when looking at a business and trying to arrive at an initial offering price.

 

Contact: Scott Perry, Business Broker at sperry@TexasBizSell.com
Phone: (972)
219-6961
Web Site: www.TexasBizSell.com

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© Copyright 2005 Sunbelt Business Brokers of Texas, 1660 South Stemmons Freeway, Suite 260, Lewisville, Texas 75067. All rights reserved. Reproduction in whole or in part in any form or medium without express permission of Sunbelt Business Brokers of Texas is prohibited. All product names contained herein are the trademarks of their respective holders. Sunbelt Business Brokers of Texas is not responsible for the content or privacy of links to Web sites outside the Sunbelt Business Brokers of Texas Network. The publisher is not responsible for the contents of the articles herein, and any person following the advice or procedures in these articles does so at his or her own risk. The publisher is not liable for the content or representations in advertisements. Neither the publisher nor any contributor will be responsible for any error of omission in the information provided and/or for the results obtained from the use of such information.