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Understanding the Business It is necessary to have a deep understanding of the business before it can effectively be put on the market for sale. A qualified business broker must understand the current business model, the business operations, the history of the business, the market environment in which the business operates, the strengths and weaknesses of the business and the future growth potential of the business.
Dynamic Business Brokers have the capability to gain a full understanding of the business in question. Market research, financial review and a series of meetings with the owner are all used to put together an extensive report that highlights the true value of your business.
Analyzing the Financial Documents of the Business
A qualified business broker must be capable to analyze the business financials including profit & loss statements, balance sheets and preferably cash flow statements, before putting the business for sale on the market. This is one of the most important activities when representing a business owner in the process of selling a business.
The most common valuation of a business is based on assigning a multiple to the adjusted cash flow of the business as an ongoing concern. There are business expenses that must be determined as to whether they should be included in the adjusted cash flow of the business or not. One time expenses, for example, will be added back into the cash flow. On the other hand, recurring expenses should remain excluded.
Adjusted cash flow should be calculated on the basis of the following equation: net income + owners compensation + owner benefits + depreciation and amortization + interest expenses + nonrecurring expenses.
Accurate financials of a business and a clear understanding of them will enhance the ability to sell the business assets.
Marketing of the Business
Dynamic Business Brokers recognize the fact that they are operating in the world of marketing and advertising, and use that reality to their advantage.
Dynamic Business Brokers utilize Multiple Marketing Channels in order to attract potential buyers.
We place your business on multiple websites and web portals that we work closely with.
It is important to realize that many potential buyers do not actively look for business opportunities. We maintain a database of potential buyers and actively market suitable businesses that fit their profile as the opportunity arises. Our goal is to market your business in order to reach the widest and best possible audience.
Your business has to be presented in an enticing and special way, which is why we spare no effort and putting together professional and compelling ads and executive summaries to highlight your business and attract the best potential buyers out there.
You will be part of each and every step so you can provide your valuable input to every action we take and feel completely comfortable with the process. We make advertising and marketing work to your advantage.
Introducing Potential Buyers to the Business
After the potential prospect signs a confidentiality agreement, recieves financial information and an executive summary, a meeting is set up with the owner. For confidentiality reasons some of these initial meetings occur outside the business.
In the initial meeting the prospect gets to meet the owner and ask additional questions about the business.
The initial meeting is an excellent opportunity for the owner to learn more about the potential Buyer, to learn about his aspirations, his future plans for the business, his personal and business background, and get a better "feel" of the prospect.
The Letter of Intent
The LOI sent by the potential Buyer outlines the terms of the deal, such as the agreed upon purchase price, what assets are included or excluded from the deal - (accounts receivable, inventory, equipment, cash deposits etc.), how much down payment is paid at closing, non compete terms, lease transfer issues etc. Due Diligence
In respect to the purchase of a business, Due diligence can be defined as a process in which the Buyer verifies information and documentation delivered by the seller, in order to facilitate a decision as to whether or not to complete the deal.
Under all accounts the due diligence process is a crucial stage in the deal making.
A qualified business broker acts in the due diligence process first and foremost as a facilitator between the Buyer and the Buyer's advisory team (typically attorney and accountant) and the Seller and the Seller's advisory team.
Summary
Dynamic Business Brokers take a proven route to selling your business - professional, creative, persistent and discreet.
Any owner selling a business will want excellent rewards for the blood, sweat and tears that he or she has put into the business over the years.
If you are considering selling your business then you can have complete confidence in Dynamic Business Brokers. We are prepared to put in the hard work and get you the results.
Call us today for a free consultation at 212-202-0399! Info for Buyers
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