Sell a Business

Each year, nearly one million businesses change hands. Most entrepreneurs looking to sell a business oversee small companies with sale prices ranging from $100,000 to $12,000,000.

These small companies comprise privately held corporations, sole proprietorships, and family-owned businesses with annual revenues from $300,000 to $20,000,000.

Yet, until an owner goes through a merger or acquisition, they won’t know what to expect or how to proceed. A professional, experienced business broker must be brought in to effectively market the company, maintain confidentiality, and advise the owner on how to sell a business best.

If you’re not ready to sell, plan for it now. If you are, Results Business Advisors should be your marketer and advisor. We will guide you through the process and our objective at each step.

1. Business Valuation:

Determining the worth of your business is an intricate task. With the assistance of our seasoned business brokers, you can confidently traverse this process. These professionals draw from extensive experience with the Midwest marketplace to appraise your enterprise. Business valuations consider multiple factors: assets, inventory at the seller’s cost, and “Owner’s Benefit.” The latter includes the corporation’s net income, owner’s salary, interest expense, depreciation, discretionary expenses, and other unique benefits the business provides.

Furthermore, the “goodwill” factor represents the value transcending tangible assets. Typically, this is determined by a multiplier of the Owner’s Benefit, a figure that oscillates based on the nature and sector of the business.

2. Listing Business for Sale:

Once we’ve collaboratively set the sale price, the next move is formalizing the partnership through a Listing Agreement. This intricate document outlines roles, stipulates compensation, denotes the effective period, and captures various terms that underpin the quest to find potential buyers.

3. Confidential Advertising/Marketing:

Crafting a bespoke marketing strategy ensures your company’s strengths and prospective growth are highlighted. Once you enlist with us, a dedicated expert collaborates, curating a comprehensive offering memorandum. Based on this tailored strategy, Results Business Advisors employs multiple channels:

• Business-Only MLS: We access numerous statewide and national business-only multiple listing platforms due to affiliations with business broker associations.
• Print Media: Our adverts feature prominently in Sunday newspapers’ “Business Opportunities” columns. The viability of regional or national advertisements can be discussed with your assigned RBA broker.
• Internet: Our digital outreach spans several confidential business acquisition platforms and our company’s popular website, https://www.resultsba.com.
• Industry Contacts: Our experts can approach potential strategic buyers, such as competitors or associated industry firms, depending on your consent.

4. Fielding Buyer Inquiries:

We diligently engage with all buyer queries. Irrespective of the apparent compatibility, our commitment is to approach every inquiry without bias – a task that demands significant time but is of paramount importance.

5. Financially Qualifying Buyers:

Only those buyers who’ve signed a Confidentiality Disclosure and demonstrated financial credibility receive your business’s marketing package. This evidence often comprises a personal financial statement and, when relevant, a resume.

6. Business Tours/Seller Meetings:

Identifying a serious buyer is just the precursor. Facilitating a confidential tour offers a platform to present your business’s strong suits. This phase also involves interactive sessions with prospective buyers, ensuring you’re prepared for every eventuality.

7. Negotiating Offers/Counter-Offers:

Transactions of this magnitude are emotionally charged. Our brokers serve as buffers, ensuring that sentiments don’t muddle the negotiations. They are the binding force that provides seamless deal progression.

8. Assisting Buyer to Obtain Financing:

Most buyers, especially those purchasing a business for the first time, seek financing avenues—a whopping 90% lean towards Small Business Association (SBA) financing – a notoriously challenging route. Our robust network of commercial bankers, well-versed with SBA protocols, guarantees that buyers navigate this process smoothly.

9. Preparing Sale Documents:

Paperwork is often a daunting prospect for sellers. Results Business Advisors liaise with your chosen attorney to formulate the final Sale Documents. We can introduce you to our recommended business attorney, Mark Williams, whose expertise can be explored further at https://www.pvwlaw.com.

10. Completing Due Diligence:

Speed is of the essence during this phase, ideally spanning 4-14 days. Prolonged due diligence can sap momentum, but our involvement as mediators ensures the transaction retains its vigor.

11. Negotiating Asset Value/Goodwill:

Post due diligence, any necessary tweaks to asset values or goodwill are negotiated. This penultimate step sets the stage for the final act.

12. Closing:

The culmination of your journey is here. As the final phase in selling your business, all outstanding queries are resolved, and financial transactions are executed. As you usher in this new chapter, we salute you and the buyer.

This day marks a new chapter in both your life and the buyer’s.  CONGRATULATIONS!!!