Mission Statement

Value Vs Worth

Selling a Business

Buying a Business

Businesses For Sale

Franchise Opportunities

Financing

Valuations

Analysis

SELLING A BUSINESS

Pricing is the key component.  As stated by a past Arizona Real Estate Commissioner who previously had been a Business Broker herself:  "Taking a listing that cannot sell is a complete disservice to the business owner and is a very big problem in Business Brokerage."

A Seller wants to receive the full value for their business.  The market determines the price.  We do everything possible to bring the best offer available to the Seller but there is no value in presenting a business that is over-priced.  There is no purpose in placing a business on the market that will not attract a reasonable Buyer.

The Seller's Desires

Confidentiality:  Using us to sell your business ensures that a professional Business Broker will be handling your transaction under strict confidentiality.  We treat Sellers discreetly and connect them with qualified Buyers.  We facilitate the transfer of businesses within a stringent code of ethics.  

To Receive the Best Possible Price:  After careful review of the books and records, we provide a Fair Market Valuation for the business.  With our experience of many years in the industry as well as in the corporate and legal world and having owned twelve successful businesses of our own, we are keenly aware of business prices in the current marketplace.  We will work earnestly with you to price your business fairly to attract and appeal to prospective Buyers.

To Receive All Monies:  For the Seller to receive all proceeds from the sale of their business, certain conditions must be in play.  The business must perform for the Buyer as presented by the Seller.  The business should provide the ability for the Buyer to make a fair market return on their investment (ROI) after allowing for any debt service.  The new owner must be competent to operate the business as it has been conveyed and must possess the financial resources required to operate the business.  If all these requirements are in place, the Buyer should be successful and will be able to pay all financial obligations to the Seller, if any. 

Items the Seller Needs to Provide to the Broker in Order to Start the Process

• Up to three years of Profit & Loss Statements and Tax Returns

• Copy of the property lease or information regarding the real estate property if owned by the Seller and being offered for sale with the business

• Equipment List with Fair Market Values

• Wholesale Value of the Inventory

• Value of the Leasehold Improvements
  

Setting the Price/Valuation

The most important decision a Seller can make is to obtain a professional objective opinion from someone whose job it is to provide valuations for businesses.  We can provide this as a Certified Business Analyst.  With this valuation prepared, the Seller has an unbiased opinion of the value for their business, setting the frame of reference for all negotiations between Buyer and Seller. (LINK for Valuation)

Drawing of the Listing Agreement

After the valuation has been performed and pricing has been discussed and agreed upon between the Business Broker and the Seller, a listing or employment agreement is drawn up.

The Broker Completes the Marketing Package

The Business Broker prepares a "profile" for the business demonstrating basic information about the business including pricing and terms offered, current income & cash flow, lease or property information, a narrative description of the business, and other pertinent factors.  Once the business file been completed, a complete marketing package, including the business profile, financial information, lease, equipment list and any other pertinent documentation, is put into place for the business.  Agreement will be made between the Business Broker and the Seller as to what materials in the package may be given to a prospective Buyer prior to their making an offer to purchase.

The Marketing Begins

We market our listed businesses through a complex, interwoven process.  In addition to our highly successful Dex Yellow Page ad, our clients benefit from our well-established referral system.  We use our vast business brokerage connections including the Arizona Business Brokers Association as well as a variety of internet web sites such as Bizbuysell.com, Bizquest.com, BusinessMart.com, BusinessBroker.net, and AZBBA.org.  We put together a complete package for each business so that qualified Buyers or co-brokers can review and understand the qualities and concepts of the business being presented.

During the Marketing Period, the Seller Should:

• Continue operation of the business in the normal fashion.

• Complete Seller's Disclosure form and Marketing Checklist provided at time of listing the business

• Present the business to prospective Buyers in a factual, straight forward manner

• Explain all the  pros and cons of the business operation to prospective Buyers

• Explain intricacies of business to interested Buyers in only a general way until due diligence is underway under a signed purchase contract.

Time Required to Complete the Transaction

In our thirteen years of operation, we have had the good fortune to close escrow with some businesses in ten days or less while others, for one reason or another, have taken up to a year.  And some have never sold.  We are proud of the fact that we have one of the highest closing rates in the Valley.  Statistics indicate that 85% of listed businesses throughout the nation never sell.  Arizona Business Sales is proud of their record of 85% of their listed businesses being successfully sold or transferred.

Showing the Business to Qualified Buyers

As Buyer's respond to the marketing, they are carefully screened and qualified through a series of questions.  A signed confidentiality agreement/non-disclosure statement is obtained before any identity for the business beyond the general area of location is given.  If the Buyer shows interest, they are encouraged to visit the business, if appropriate, as a customer, to determine their comfort level with the physical aspects of the business, the location and surrounding area.  If the Buyer's response is affirmative, an appointment is made for the Buyer, Seller and Business Broker to meet to have an open and informative discussion of the business.  After the showing of the business and a full discussion with the owner, the potential Buyer usually indicates if they have a desire to go forward in purchasing the business.  After a few more general informational exchanges and negotiations between Buyer and Seller as to the conditions of the transaction, a purchase contract is drawn up and offered with a series of contingencies to be satisfied.  Escrow is then opened and detailed due diligence is begun.

Items Handled by the Broker

The period of due diligence allows for the Buyer to verify the representations which have been made by the Seller in their formalizing of an offer.  During this period the Business Broker works as an intermediary to facilitate the review of books and records, the transfer of real property or assignment of lease for the property, the transfer of any equipment or software program leases, inventory verification and a myriad of items pertinent to each transaction.

The Seller's Time and Effort

This varies due to the complex nature of business, and can involve almost no time at all to a great deal of time spent when a Seller and Buyer have bonded.  There is no way to estimate or limit the amount of time.

You Will Be Kept Abreast of All Events

We keep our clients aware on a steady basis of inquiries and activity involving potential buyers for their businesses.