Selling A Business

What Sellers & Buyers Look For When Selling A Business

The Seller is looking for:

Top price for the business
The most cash at closing
Maximize proceeds even if financing
To have the company & its employees prosper

The Buyer is looking for value:

To earn a living
To earn a return on the cash investment
To grow the company without additional debt
To provide for retirement when the time comes
To expand portfolio

To determine such value a buyer looks at:

Historical Earnings
Management Involvement
Diversification
Growth Prospects for the Business & Industry
Terms of the Sale
Employee Stability
Competition
Location & Facilities

The value of a business is different to a buyer depending on the needs and perspective of the buyer. Finding The Right Buyer for Your Business is more than finding someone with the money that likes your business. We interview them before we bring you a qualified person to talk to.

A buyer will expect a business to have sufficient cash flow to:

Pay Debt Service
Pay the Owner/Manager a Salary
Yield a Return Income on their Down Payment
Leave a Safety Cushion

Also, buyers will expect a business to have:

Up-to-date Financials, Inventory and Tax Records
A Presentable Work Place
Reliable Personnel

In order for your business to be considered viable business opportunity it must meet these criteria.

Why Use A Professional Business Broker?

For the same reason you would go to an eye doctor when you need assistance with your eyes or a mechanic when your car breaks.

If you are exploring the option of selling your business, you may not be sure that you necessarily need a business broker. We are happy to meet with you and evaluate your needs at no cost, and help you assess the situation. The process can be confusing, and it’s a good idea to have wise counsel to help you through the decisions which could have an impact on your future financial landscape.

Why use a business broker?

Because this is what we do day in and day out. Using the Business Brokers International

Group will allow you to focus on what you do best, running your business or planning your exit if you are selling. It is important you keep it that way. You simply want a professional to handle all of the complications for you!

If you have considered selling your business or developing an exit strategy, you need and should have professional help in making your decision!

We have the talent and resources to assist you in determining:

If selling is right for you
The best time to sell
The right price & terms
The most effective marketing strategy

If selling is right for you, we:

Work with you in establishing the best price for your business.
Prepare a marketing strategy to maximize the value of your business.
Professionally market your business.
Interview, screen and pre-qualify prospective buyers.
Negotiate with potential buyers for you.
Work with your legal and financial advisors on your behalf.

The potential sale and all communication will be kept strictly confidential!

We only get paid when a sale is made. No up-front fees.

Ask yourself:

How do you reach QUALIFIED BUYERS, possibly even competitors, without disclosing your intention to sell?
How do you evaluate your business OBJECTIVELY to ensure that you are not over-priced or worse under-priced?
How do you PREPARE & PROVIDE the information to prospective buyers and generate required interest?
How do you MAXIMIZE your favorable exposure to potential offers while minimizing your potentially damaging public exposure to customers, competitors, employees and suppliers?
How do you MARKET your business efficiently, effectively, and confidentially?
How do you screen and PRE-QUALIFY BUYERS, determine their motivations, managerial capabilities, and financial strength?
How do you SUCCESSFULLY SELL your business, diverting significant time, effort and resources to that process, while continuing to manage your ongoing business productively?

LLana Options Real Estate International Group will do this for you, so that you can continue to run your business profitably. We have the expertise, tools, and connections to market and sell your business successfully.

Facts About Florida Business Sales

Where Do Buyers Come From?

70% are first-time buyer from Corporate America
28% are Professional Buyers looking for business opportunities
2% are Investment Groups

There are hundreds of buyers with hundreds of millions of dollars in down payments looking to buy a business like yours, ready to act for the right opportunity.

How Much Money Do Buyers Have?

80% of buyers have at least $100,000
60% have $200,000 or more
30% have $300,000 or more
15% have $500,000 or more
10% have $1,000,000 or more

Mergers & Acquisitions represent companies with over five dollars to invest.

LLana Options Real Estate International Group works with individual investors, institutional investors, capital companies, holding companies, venture capital groups and corporations looking for acquisitions with up to one hundred million dollars in funds to invest.

We may already have the right buyer for your business.

Business Selling FAQs

Click on the questions below to see the answers.

How can I get a business valuation?

LLana Options Real Estate International Group can help you with valuation. Many small businesses are not actually valued, but rather priced using market information, rules of thumb, and experience. Always be ready to respond how your business was priced.

How do I deduct the cost of Goodwill I purchased with the business?

There is no simple answer or formula for evaluating this. Current Tax law indicates the cost of business intangibles such as Goodwill, covenants not to compete, and trademarks are amortized over a 15-year period. Please consult a professional on these matters.

What should I know about accounting and bookkeeping?

The importance of keeping adequate, legible, complete records cannot be stressed enough. Without records, you or the potential buyer cannot see how the business is going. All business transactions should be documented including cash transactions. At a minimum, records are needed to substantiate your tax returns under federal and state laws. It also is necessary to document credit from vendors or loans from lending institutions.

Can I defer the Gains on the Sale of My Business by Buying Another One?

You should consult your CPA in order to strategize tax outcome. There is a possibility of deferral of gains on sales of certain types of corporate transactions.

Under specific circumstance taxpayers are allowed to defer (or rollover) the gain on the sale of Qualifying Small Business (“QBS”) if the gain is invested in another business of equal or greater value. We can’t stress enough the importance of your CPA’s advice and please note: A Business Broker is not authorized to give you actual legal or accounting advice, although we can certainly refer you to a tax specialist from our network.

How much is the business worth?

There are different methods of determining the value of a business but it will never be an exact figure. Many factors must be considered including the economy, competition, similar business sold, etc…. LLana Options Real Estate International Group can give a price range for many small businesses, also based on experience with the market, rules of thumb, and an analysis of financial statements and cash flow.
In some cases cash flow is the most important factor to consider in a small business sale.
Other factors to consider include: industry trends, type and condition of equipment, future capital requirements, customer base, avenues of growth, owner’s role, now and after the sale financial needs and goals of the buyer and the seller.

Please contact us for a complete valuation.

Divestiture Strategy

Selling Your South Florida Business

Our Effective Divestiture/Exit Program Includes:

Working Closely with Your Business Broker Beyond the Numbers

Every buyer puts a great deal of emphasis on the strategic factors. We work closely with you to present a clear understanding of the market, competition, the focus of the business, and proprietary advantages including technology, customer relationships, intellectual property, as well as human and physical resources.

Also Included:

We prepare a Confidential Information Memorandum for prospective purchasers, including:
Business overview and background
Sales history
Current market position
Prior three years Financial Statements and Federal Tax Returns
Recast financial statement to show EBITDA cash flow and owner related expenses that will further increase adjusted cash flow
Nonspecific snapshot to top customers and/or customer segments
Facilities and Equipment
Staff

We then prepare a complete and compelling confidential profile. These documents will be provided in phases, beginning with basic, non-identifying information that we can use to attract general interest through mass marketing. We then progress to more detailed information to send to prospective purchasers, carefully screened to make sure that they are capable of purchasing. (In all cases, prospects have signed a Confidentiality Agreement for your protection.) By creating this package results in a smoother sales process .

Working closely with our customer, we answer questions from the potential buyers.

Information of proprietary or highly competitive nature may be withheld, but to the degree possible, we provide what each buyer requires to facilitate their evaluation.

Everything we do to market your business will be handled with confidentiality. The prospects you will see will be those who we have qualified, and who we are confident are financially and motivationally capable of buying your business. No information will be disclosed without a signed Confidentiality Agreement, a bio & personal balance sheet being provided.

Once an Offer, Term Sheet or Letter of Intent has been signed and agreed to, we will facilitate:

Due diligence
Financing
Environmental studies if required, if real property is involved
Purchase agreement negotiations
Manage the closing process
Post close planning
Helping you pay as little in taxes as possible*

*Although LLana Options Real Estate International Group is not qualified to give tax advice, our team will work with your professional advisers to suggest, and to structure the transaction, to minimize your exposure to Federal Taxes.

Closing Your Business Sale Transaction

Murphy (of Murphy’s Law fame) always visits a number of times during a transaction, but seems particularly close at hand when Closing approaches. We work with the buyer to develop a Term Sheet outlining the business agreement which is signed off by both seller and buyer, and can be provided to legal counsel. We coordinate internal and external professional resources such as financing, legal, accounting, environmental and tax advice, if and as required. We have proven administrative systems to make sure things stay on track, and to the extent possible, preempt Murphy.

HOW MUCH IS MY BUSINESS WORTH?