Reasons to Hire a Business Broker
When a business owner has carefully analyzed their situation and determined it is time to sell their business (and this critical first step cannot be overemphasized), they often wonder "Do I sell it myself?" or "Should I hire a business broker?" and, if so ... "Who?"
These seemingly innocuous questions are actually quite daunting when you start to seriously consider them. So what can Cantrell-Griffin Business Brokers do for you? Here is a list of reasons explaining how you will benefit from the assistance of an experienced and qualified business broker from our team.
1. Perform Financial Analysis and Valuation: We'll produce an effective financial analysis of your company that shows an attractive and accurate picture of your earnings. We work with you and sometimes your accountant, to produce a cash flow analysis (we refer to it as Discretionary Earnings) that will clearly demonstrate the TRUE profitability of your business. The net income line on your tax return is for tax purposes only and does not reflect how much money your business actually makes. We will produce materials that PROVE to a buyer the real cash flow of your business.
2. Provide a Brokers Opinion of Value: Cantrell-Griffin Business Brokers will use the financial analysis to help us arrive at the best selling price for your business. A price that is not too high that it scares the good buyers away and yet gets you a fair value for the business that you have invested so much in. In addition to the financial analysis, our valuation we relies on our extensive database of transactions and industry data we have researched. Our 'Broker's Opinion of Value' is produced at no cost to our clients.
3. Locate Qualified Buyers that will Compete for the Purchase of Your Business: We'll help you locate the best buyers for your business - those with the money, experience and desire, that will get a deal done! We then advertise your business through various means such as internet advertising, email advertising and more - all at no cost to you. Our goal is to interest as many good buyers simultaneously to the deal, which creates competition for your business and gets you the best possible price for your company. Our database contains thousands of contacts who have contacted us in the past regarding either a “Business For Sale” opportunity or to request we find them a business that fits their unique criteria. These are real buyers, not just purchased email addresses. At the business owner’s discretion, we'll advertise the business openly or confidentially (such that no one would know which business was for sale) on the most popular business-for-sale websites at our expense.
4. Produce Effective Marketing Materials: An experienced and qualified Cantrell-Griffin business broker will produce a professional presentation package of your company. First impressions matter. Lots of care should be put into creating a nice marketing piece in order to gain interest from buyer prospects. We want to INSPIRE buyers to take an interest in your business so they become motivated to look further into the opportunity and eventually make an offer. The marketing materials will show your business in a most positive light to justify the asking sales price.
5. Maintain Confidentiality: Rest assured we will handle your business sale very confidentially. We will help you maintain your 'secret' by asking the buyers the right questions and setting up appropriate steps of delivering information. We require that ALL buyers sign a Non-Disclosure Agreement (NDA) before we provide confidential information and then, if interest progresses, they will provide financial qualification bio. We will not reveal confidential information (who is for sale, financial data, etc.) until we are sure that the buyer is financially qualified and will keep your sale plans and data confidential. By this time, we have not only spoken with the buyer, but we have also received the buyer's registration information, where the buyer has provided personal financial data. We want to know about the buyer's financial ability to make a deal happen before they learn who you are! We also want to confirm that the buyer is a serious and genuine candidate to acquire your company. We CARE about your confidentiality.
Effective and discreet management of your buyers will always be our first priority. We'll arrange meetings only when it can be done in such a manner that it will prevent your employees from finding out that your business is for sale. The last thing you want is for an uncontrolled buyer to bother you at your business and potentially let your employees and customers know you are for sale. By controlling the actions of your buyer, we prevent them from becoming an annoyance to you and potentially causing a breach of confidentiality.
6. Promote Your Business to the Buying Public in a Discreet and Confidential Manner: At no charge to our clients, we will promote your business continuously on the most well-known business-for-sale websites as well as direct email advertising to our database of potential buyers. Cantrell-Griffin Business Brokers covers all expenses of advertising even though we charge you no up-front fees. We are confident in our ability to succeed which is why we are only paid when we are successful in selling your business.
When our clients prefer a confidential sale process, the public ads for your business will not reveal to buyers which company is for sale. We are careful not to reveal anything that would let a buyer find out who is for sale in this scenario. As the business owner, you will be asked to approve advertising information before we place ads. We want to make sure that you are comfortable with the wording that we are using.
7. Act as Buffer Between You and the Buyer: A very important function of a business brokers is to act as a buffer between you and the buyer. We'll assist in communicating the things that are said so that the needs of the parties are more effectively relayed to one another. A broker is able to have frank objective discussions with the business owners in the emotional process of selling a business. We help you strategize the best way to handle buyer negotiations over price and terms of a deal and we communicate your requirements to the buyer in a productive manner that has a better chance of producing a positive result. We also relay requirements and comments from the buyer to you in an honest and candid fashion and we clarify how the differences in viewpoint can be ironed out effectively.
8. Assist with Negotiation: Cantrell-Griffin Business Brokers will be representing YOU during the negotiation of price and terms of a deal. Being represented by an intermediary will give you a tremendous advantage in the necessary negotiating process. We are highly experienced negotiators and can really help you through this important step in the sales process. We'll usually have a good idea about what the buyers are thinking, what their negotiating strategy is and can help you get to an acceptable price for your business. We negotiate deals almost every day and are very familiar with the best strategies to arrive at a successful conclusion.
9. Let the Owner Focus on Running the Business: Perhaps most importantly, Cantrell-Griffin Business Brokers will manage the deal process for you. As the business owner, it’s important for you to continue focusing on the proper management of your business. If an owner doesn't have a competent broker running their transaction for them, they might get overly distracted by the details of marketing to buyers and pay less attention to running the business once the sale process begins, only to learn that it is taking longer than originally anticipated to sell. If the owner's lack of attention on running the business optimally causes business performance to suffer, and then a highly motivated buyer is located, negative trends or dips in recent company performance can result in a lower valuation or, worse, a lost buyer. Starting from our initial meeting with a buyer, to qualification, offer agreement, negotiations, removal of contingencies, purchase and sale agreement and finally the closing, we work the deal every step of the way … leaving the management of your business to you!
10. Assist Buyers in Obtaining Financing: A sometimes important step in business sales is helping the buyer obtaining financing to complete the transaction, which helps you get the maximum amount of money at the closing. We work with lenders that will want to support your buyer and get you your money. We also use creative strategies to help buyers find cash through retirement account savings, investors and other sources.
11. Draft Agreements: We are experienced with the documents needed to make a deal for your business. In most cases, we can provide draft documents (Letter-of Intents, offer agreement, asset purchase agreement and other important support documents) saving you time and money throughout the sale process.
We fully encourage full cooperation with your attorney and CPA to help ensure legal and financial responsibilities are optimally fulfilled.
12. Help Throughout the Deal: It's rarely a smooth straight road to the closing! Be assured that Cantrell-Griffin Business Brokers is thoroughly familiar with the pitfalls of business sale transactions and we'll deal with the lawyers and the accountants and put out all the fires along the way. We know how to solve the problems that prevent a deal from moving forward. We are accustomed to the needs of the buyer, (which are just as important in order to close a deal), and we'll work to solve problems as they come up. To make a deal happen, both the seller AND the buyer need to feel like they are winners. We work hard to obtain that result by using creative strategies that get the parties what they each need to finish the deal and get to the closing table.
13. Manage the Due Diligence Process: Once your business is under agreement, the buyer will perform a thorough due diligence of the legal and financial aspects of your business. We will assist throughout this process by scheduling meetings and helping you provide requested documents. We make sure that the needed information gets to the buyer in an effective way, in order to produce a positive outcome.
14. Utilize Years of Brokerage Experience: Cantrell-Griffin Business Brokers has many years of experience selling businesses and we know what to look for when dealing with the buyers and can sense when troubles in the deal might occur. This experience provides valuable relief knowing that there’s someone working hard for you and looking out for your best interests. We are thoroughly familiar with each step in the business sale process and will provide you with valuable counseling and advice every step of the way to the closing table.
15. Act as Your Friend and Advisor: Whether you’re buying or selling a business, we'll work with you as your advisor and confidant as we proceed together through the inevitably difficult business sale or purchase process. We are there for you! We are on your side!
Hiring a competent business broker
SIMPLY makes good $ense!