Business Team Group

IBBA, CABB, BSA Eagle Scout

For business buyers, a business broker guides the buyer through the labyrinth of deal-making, due diligence, securing financing, relevant agency applications and effectively managing the actual business transfer. Broker services vary depending on the type of business sold, the locality, governing laws as well as the practice and skill set of the broker. Given a typical small business sale process last 6 to 12 months, one of the most significant service that business brokers provide is to help their sellers stay focused on running their business during the sale process. Establishing the Most Probable Selling Price Valuation (MPSP) by analyzing the business’ financial records going back 3-5 years. While there are a variety of valuation methods, the most common methods are Seller’s Discretionary Earnings (SDE), EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and Asset-Based valuations. Package the listing which entails gathering all essential business and financial records to analyze the business and to present to prospective buyers for their due diligence investigation. Create a report that comprehensively presents all components of the business for prospective buyers. This document is known as either an Information Memorandum or Confidential Business Review. Secure financing if possible through Small Business Administration (SBA) lender networks. Market the business listing to prospective buyers on business listing websites, email campaigns to buyer lists, relevant industry groups and through social media marketing. Screen and qualify buyers for relevant qualifications, licenses (if applicable), ability to financially complete a purchase. Brokers will also secure Non-Disclosure Agreements from prospective buyers to maintain confidentiality of the sale. Once an appropriate buyer is identified, the business broker will coordinate negotiations and provide deal structuring advice.