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How
do I know how much my Arizona business is worth?
When is the
right time to offer my business for sale?
How
long will it take to sell my Arizona business?
How long is a
typical business opportunities listing?
What type of information do you require for a listing?
What is the most important step I can take to help expedite
the sale of my business?
Why is Seller financing or offering terms so important in
selling a small business?
What are the odds of receiving all "cash" from the sale of
my business?
Do you charge any "up front fees" to market and list an
Arizona business for sale?
What are your
commission rates?
Do you "co-broke" or
work with other Arizona business brokers to sell your
listings?
Why are you affiliated with a Real estate company if you are
a Business Broker?
Why shouldn't I try to sell my business on my own?
Why shouldn't I try offering my business for sale first to
an employee or competitor in my industry?
Do you work with Sellers located outside of the
Phoenix-metro area?
Please
contact us now if you have any additional questions.
Q-
How
do I know how much my Arizona business is worth?
A- There are a number of different methods
or guidelines for valuing a small business for the purpose
of sale. These methods are dependent upon a host of
variables that are unique to each individual business. I
generally use a combination of methods including a multiple
of the sellers discretionary cash flow, and a analysis
of current market data, and comparables of similar
businesses sold.
Your best bet is to contact me to arrange a
confidential consultation. After I have a thorough
understanding of your business model and its history, a
chance to review current and at least 2 years previous
financial statements, I can then assist you in determining a
supportable asking price which should result in a sale. If
you like, you can also submit a free
business valuation form on this site to receive a
preliminary valuation.
Q- When is the right time to offer my business for sale?
A-
If you want to maximize your return on your
investment the best time to offer your business for sale is
when the business is growing and profitable. Buying a
business is a major leap of faith for most buyers to begin
with. Investing in a business that has declining sales or
other mitigating factors such as new competition only makes
it a bigger challenge to get a qualified buyer to move
forward.
It takes a tremendous amount of discipline
and forethought to offer a business for sale when things are
going well. But it is also unquestionably (in my opinion)
the best time to execute your exit strategy. Please contact
me (602-292-0553) for more details on preparing your exit strategy now.
Q-
How
long will it take to sell my business?
A-
This can depend on a wide variety of
factors. On average, I advise my clients that if their
business is properly prepared and priced, it could take
anywhere from 3 to 6 months for their business to sell.
Obviously there are exceptions. I have seen some businesses
sell in a matter of weeks, and some have taken more than a
year. In general, the sooner I receive all the necessary
information to begin preparing the listing for the marketing
process, the shorter the time period should be to find a
qualified buyer. The bottom line is that good businesses
with a verifiable track record that are properly prepared,
priced, and structured with reasonable terms from the start,
should eventually sell. Please call me now at 602-292-0553
to arrange a confidential consultation if you would like to
move forward and list your business ASAP.
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Note: I am confident going
forward that my substantial Arizona internet
presence and marketing program will continue to
reduce the amount of time it takes to find
qualified buyers for my listings.
Contact me and I will share with you some
recent Internet related success stories. Simply
put: the more exposure a business opportunity
receives, the greater the chance of exposure to
the right buyer. |
Q-
How long is a typical listing?
A-
I ask all my clients to give me a minimum
6 month (9 months is preferred) exclusive listing. However, if at any time after 3
months from the original listing date you are not satisfied
with my service or the level of activity I have generated,
you are welcome to cancel the listing contract through
written notification.
Q-
What type of information do you require for a listing?
A-
For an initial confidential consultation
to review your business and determine a supportable asking
price I would need to see at least a current and two years
previous financial statements. If you decide to move
forward and the list the business with me, I would require
all of the applicable information that is noted in my
business sale preparation guide. Please click here to view
and print a copy of my
business
sale preparation guide. Please feel to call me directly
at 602-292-0553 if you like to move forward now in preparing
your business for sale.
Q-
What is the most important step I can take to help expedite
the sale of my business?
A-
Along with offering a supportable asking
price, in my opinion the most important step you can take to
speed the process of selling your business is to have
current and at least 2 years previous (3 years is ideal)
financial statements (profit & loss with balance sheets)
professionally prepared and ready for qualified buyers to
review at the time the listing is signed and put on the
market. Its been my experience that very few serious buyers
will present an offer with out first reviewing this minimal
financial history of the business.
Q-
Why is Seller financing or offering terms so important in
selling a small business?
A-
Small business sales stats have shown
that Sellers who ask for all cash, on average receive only
70% of their asking price, while Sellers who accept terms
receive on average 86% of their asking price. Also, with
reasonable terms, the chances of finding a qualified buyer
for your business will increase dramatically versus asking
for cash only. In my opinion, offering some type of terms
also re-assures nervous buyers that the Seller has genuine
confidence in the viability of the business. Why else would
you offer financing if you didn't believe the business could
support the debt service?
Q-
What are the odds of receiving all cash from the sale of my
business?
A-
I would estimate that only 20% or less of
the businesses I sell every year get sold for all cash. The
majority of these are sales under $125k. Despite the claims
that some banks and SBA lenders make about offering 100%
financing for small business acquisitions, the reality is
that this scenario rarely occurs. Its been my experience
that most banks and lenders are extremely cautious about
small business acquisitions, and are more than likely going
to require the Seller to agree to carry back (in the form of
a note) a portion of the sales price (usually 10% to 20%)
before they will approve a loan. Be advised also that most
lenders will perform their own business valuation to
determine if the cash flow can support the accepted asking
price and terms. If it doesn't, they may require the Seller
to adjust the asking price and terms before approving
financing.
Q-
Do you charge any "up front fees" to market and list a
business for sale?
A-
Absolutely not. The only compensation I
receive is a commission fee if I find a qualified buyer who
purchases your business, or an investor/partner who
purchases a portion of your business.
Q-
What are your commission rates?
A-
Most business brokerage firms in Arizona
typically charge a flat 12% commission on the sales price of
a business opportunity. Due to the efficiencies I have
created with my Internet marketing program, my rates tend to
be a little more flexible- on average 10% of the sales price
for most small businesses, with a bare minimum commission of
$8,500. And because I am an independent contractor, I can in
most cases also offer my Sellers some other attractive
incentives regarding my commission rate & structure not
normally offered at most business brokerage firms. For more
information, please feel free to contact me (Business broker
Ray Haiber) directly at 602-292-0553 to arrange a
confidential consultation. All information is held
strictly confidential, and there is absolutely no
obligation.
Q- Do
you "co-broke" or work with other brokers to sell your
listings?
A-
Unless I am specifically instructed
otherwise by my Seller, Yes- absolutely. After taking
appropriate measures to protect my client's confidentiality,
I will work with any professional licensed business broker
if they have a qualified buyer for one of my listings. In my
opinion, I
believe that brokers who do not work with other
professional brokers are putting their clients at a serious
disadvantage by minimizing the exposure to other potentially
qualified buyers in the market place.
Q.
Why are you affiliated with a Real estate company if you
are a Business Broker?
A-
In this state (to the best of my knowledge) you are required
to have a real estate license to be a Business Broker. Keep
in mind that most professional small Business Brokers in the
US
have a real estate license whether it’s required or not
because it is not uncommon to sell a business with real
estate attached.
As far as
why I have chosen to keep my real estate license at West USA
Realty, as an independent contractor I have found that West
USA Realty offers me a lot of advantages versus working for
a traditional business brokerage firm. This includes the
ability to be more flexible regarding my commission rates
and establishing the length of my listing agreements, which
my clients sincerely appreciate.
Q-
Why shouldn't I try to sell my business on my own?
A-
I have talked to dozens of business
owners who have attempted to sell a business on their own.
Even with the advent of Internet marketing and "For Sale by
Owner" web sites, the vast majority of them advised me they
would not attempt it again- it was just not worth the
hassle, or any perceived cost savings. Even the majority of
the owners that were successful admitted that having a
professional intermediary involved in the deal would have
undoubtedly made the transaction much smoother & less
stressful. I can assure you also that it is also a lot
harder to protect the confidentiality of a business sale
when attempting a "For Sale by Owner" transaction.
Q-
Why shouldn't I try offering my business for sale first to
an employee or competitor in my industry?
A-
In my opinion, if your goal is to get the
absolute best price and terms for your business, the best
way to accomplish that is to confidentially put your
business on the market and let the market do its work. For a
number of reasons, it has been my experience, that Sellers
more often than not ultimately regret the decision to limit
the offering of their business for sale just to employees
and industry competitors. Please feel free to contact and I
will be happy to provide you with some more thoughts on this
matter.
Q-
Do you represent Sellers outside the Phoenix- metro area?
A-
The short answer is absolutely yes. My
strong Internet presence and innovative marketing techniques
have allowed me to successfully market certain types of
businesses outside the Phoenix-metro area including Northern
and Southern Arizona. Your best bet is
to contact me for more details.
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