Selling a business is a multifaceted event. The majority of entrepreneurs sell a business only once or perhaps twice in a lifetime. Having The Sterling Business Brokerage Group Associates work with you takes the mystery out of the process of selling a business. Whether your company is presently sized in the middle market segment, or working to grow to that level, we bring the most comprehensive resources to the transaction. We explain each step to our clients and work with you all the way from the initial meeting to the closing table. Below is an overview of how the process works:
Selling a business/company with The Sterling Business Brokerage Group begins with an initial contact followed by the initial meeting where we learn more about your business and have an opportunity to explain more about our services. This meeting typically lasts an hour or two and decides the course of action required to sell your business based on our experience and tailored to your business\'s needs. The next step is typically to determine a marketing price for your business.
Business Valuation to Sell a Business
Market value when selling a business can be defined as \"the highest price a ready, willing and able buyer would pay and the lowest price a ready, willing and able seller would accept, neither being under any pressure to act.\" Every owner wants to get the best price that he or she can for selling a business. One of the key elements to sell a business is therefore pricing the business at an amount reflective of what the market should accept.
Determining this value can be complicated since the value can be affected by a variety of factors including your company\'s industry, cash flow, assets, liabilities, management, etc. It is often helpful to, as a seller; put yourself in the position of someone interested in buying a business. The reason that most people choose to buy a business is to make money.
The amount of cash that a buyer expects to generate from the business is very important. This cash flow must be sufficient to, among other things, service any debt the buyer uses to buy a business, provide a reasonable return on the buyer\'s cash investment, and for owner-operator businesses, compensate the buyer for any involvement with the business (e.g. salary)
If the price asked is too high to support these basic needs, it will be difficult to find a buyer willing to invest hard earned dollars to operate at a loss (which would require ongoing investment on their part). Any bank (or other lending institution) will look at these same factors in determining whether or not they will loan money to someone buying a business. Certainly there can be exceptions to this \"reality check\" analysis, but as a general rule the cash flow expected by the buyer must support the sales price.
The Sterling Business Brokerage Group will work with you to determine a price that makes sense in the market. We work with and recommend a number of independent appraisers to assist with this process of business valuation. In the end, we help our clients to achieve their goal of selling a business at the best price the market will support. Please contact us by clicking the following button if you would like more information regarding your business\'s value.
Marketing and Selling a Business
Selling a business is quite different from selling anything else that you own. For other assets, such as residential real estate, the seller generally wants everyone to know that the asset is for sale. Everyone knows a house is for sale since the realtor puts a \"for-sale\" sign in the front yard and openly advertises. Most business owners cringe at the thought of such publicity while trying to sell a business, and rightfully so. There are many reasons to keep the intention of selling a business confidential - such as protecting vendor, customer and employee relationships - until the owner decides to make it public.
The Sterling Business Brokerage Group has implemented a Confidential Business Process through which we match serious buyers and sellers alike, establishing protections to the company\'s identity. This process allows us to attract interested buyers to the offering while helping to maintain the confidentiality of the business for sale\'s identity until the appropriate time. A potential business buyer must agree to certain extensive nondisclosure provisions before learning the details regarding a business for sale.
Every business is strategically marketed through a number of channels to attract the maximum number of interested buyers. We combine extensive technology resources, personal contacts, advertising and other methods to buyers and sellers. We work to create demand by getting multiple parties interested in buying a business at the same time, thereby increasing the business owner\'s bargaining power.
In summary, The Sterling Business Brokerage Group will work in a professional, ethical and confidential manner to find the right buyer for your business. We work closely with you and all others involved to help assure a smooth closing and transfer of the business so you can quickly get on to the next phase of your life.
(312) 799-9436 | (312) 305-4678
Regarding selling or buying a business.
We welcome your call and will earn your business.