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Buyer & Seller Resources

Buyer and Seller Resources

Buyer Resources:

The Value of a Good Business Broker… You have finally saved up the money and worked up the courage to fulfill your dream of business ownership. In proper form, you eagerly seek out all the “Business for Sale” websites you can find and hope to strike gold.

As you search, you learn about terms and concepts you’ve never heard before, make lists of likely candidates, visit with brokers, sign Confidentiality Agreements, and meet with eager owners ready to make a deal. But with each business, you find that there is always something holding you back.

Before long you become tired of the questions that aren’t answered by financials and business plan, the deals that seem too good to be true and the hours spent trying to find your dream business begin to wear you down. The search has officially become tedious and time-consuming.

At UBB Network we know this happens because it has happened to many buyers that we meet for the first time. Frustrated and exhausted from their search, they finally make the decision to enlist the expert help of a UBB Network business broker, and suddenly, their burden lightens and their search becomes much less agonizing. UBB Network can provide great listings or even perform a buyer search for a business that fits your criteria.

Here is a list of the buy-side representation services we offer:

  • Working with you to develop a list of criteria for your search

  • Finding potential acquisitions that are a close match to your criteria

  • Maintaining your confidentiality while getting in contact with potential candidates

  • Screening potential candidates to make sure they are a worthwhile opportunity

  • Providing assistance with paperwork and contracts

  • Giving advice and assistance as you proceed with meetings and negotiations

  • Providing valuation services on your behalf

  • Assisting you in locating various forms of financing and a successful closing

 

Your business broker is skilled in maneuvering the “hidden market” where businesses can be found whose owners want to remain private and whose businesses are not actively listed for sale. These owners are concerned that an active listing will affect their customers, employees and suppliers and they don’t want their business to suffer. Luckily for the buyer, there are four times as many businesses on the hidden market as there are businesses listed for sale and so, a search on the hidden market produces a lengthier target list. With a buyer search, the chances of finding a business that meets your specific requirements improves significantly over searches on the internet for business listings.

As a general rule:

  • You will need at least 20% of the selling price (cash) to place as a down payment.

  • You will need relevant experience in either the industry or in past ownership and/or high level sales & marketing experience (demonstrated in your resume)

  • You will need good to great credit - generally a credit score of 650 or higher.

Seller Resources:

If you want the highest price for your business, it will have to be seen in the best light possible. That’s where timing plays an important role. As you conduct your research and decide when to sell, you will learn that the market is fickle and a slight change in the economy, industry, stock market or your businesses growth cycle can throw your hopes to sell into limbo.

You’re probably trying to get the highest price possible for your business. One way of doing this is by selling when sales and earnings are good and getting better. If you can demonstrate a solid earnings trend that is steadily on the incline, your buyer will be enticed to pay a higher price for the business. If you can’t demonstrate a good earnings trend or your growth cycle is spiraling downward, you will likely not be able to convince the buyer that paying a higher price will be worthwhile or that they can get a good return on their investment. Buyers want to see a history of good performance because it gives them confidence that projected future earnings will be stable.

If you are trying to envision the right time to sell; just imagine the life cycle of your business plotted as a bell curve with the peak being the top of the growth cycle. The top of the curve is when you have reached the flat plane of growth...a sustaining mode. There is really nowhere to go for your business at this point but down. Keep in mind that buyers pay the best prices when they can't see the top, or when the curve is still on the incline. Once your business has reached its peak, buyers may pass on the opportunity or may insist upon paying prices based upon a business which is past its prime. If you have waited until your revenues are already past their prime, you have waited too long. To get the best deal you have to sell before your business reaches its peak.

All good business brokers qualify business buyers before disclosing businesses for sale. Preliminarily, you can qualify yourself by making sure you meet the criteria listed above. Also, you can get a credit report for yourself to show the broker or seller. If you are unsure about the qualifications needed.

Contact us for help at:

832 640 5130 or info@ubbnetwork.com