What to Look for in a Broker When Buying a Business

By Jenny Hill

 

When you want to buy a business, it is highly recommended that you use a professional broker. The broker will inform you about the various businesses that are available for sale. They will also help you to gather information about the prospective business for buying. Getting an online broker will entitle you to a long list of available companies. The online platform is also fast and highly efficient. You will be assured of a convenient buying process. It is possible to browse for different categories as well as purchase prices for the prospective businesses. Here, is what you should look for in a broker while buying a business.

Experience
The broker should be experienced in selling businesses. The brokering agency should have been in the business for a considerable duration. This ensures that it has adequate skills and expertise to negotiate for the best deals. An experienced broker will also have links with various companies in the country. The broker will also inform you about the most opportune time to buy a business. The agent will direct you on the purchase prices. You will also be informed on the various requirements that are needed in order to make the purchase.

Professionalism
It is also essential that you buy a business through a broker who is professional. The brokerage firm should always conduct its affairs in a professional manner. It should handle all the clients with uttermost care and concern. The agency should also be focused on providing the best services to the clients. This will ensure that the purchase process is fast and convenient. The broker should also assist you with as much information as needed about the purchase process. The agent should also be courteous and highly respectful to the clients buying a business.

Authenticity
You should always ensure that you get an authentic broker while you want to buy a business. The broker should be licensed and registered by the government agencies to conduct these services. The agent should also be well reputed in the industry. This can only be achieved if the broker is willing to offer high quality and professional services. The previous clients should always have good sentiments about the services offered. The broker should also have adequate skills and expertise to assist you while buying a business. The agency should be willing to conduct research about the business on your behalf.

Quality of services
When you want to buy a business, you should also get a broker who is willing to offer high quality customer services. The broker should always be available whenever you require them. They should also respond promptly to your email messages. The broker should be willing to assist you in the entire process of buying a business. The broker should also assure you of the authenticity of the business. The brokering firm should conduct thorough research on the business before placing it on its site.

For a complimentary consultation:
Contact  Cecil Williams (cecil@bizbrokerflorida.com) or call  at 888-925-5055 ext.206.  Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com  Also, visit our Florida Business Exchange website at www.fbxbrokers.com

Why Buying a Business in a Sluggish Economy Is a Good Idea | Business Broker Blog

Why Buying a Business in a Sluggish Economy Is a Good Idea | Business Broker Blog:

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Are we dealing with a buyer's market?

Are we dealing with a buyer's market?  
 
Buying a business has changed enormously over the course of the past decade, with the recession shaking things up more than we could have predicted.

We've seen a dramatic increase in administrations as unstable companies failed to cope with the drop in cashflow that followed the economic crash, while buyers themselves showed increased levels of caution when acquiring new businesses.

Things are far from steady again now, but we are seeing signs of a return to a new kind of normality; one in which buyers have the upper hand.

An abundance of easily available credit resulted in the widespread adoption of the auction as the preferred method of selling a business. It allowed sellers to maximize tension between competing buyers, keeping the pressure on and pushing the price up.

However, as the number of buyers capable of still affording to make an acquisition reduced in the wake of the crash, the remaining bidders demands increased.

Buyers were no longer happy to hope for the best and instead have started to demand more tailored information at earlier stages of the buying process in order to guarantee their success. 

In essence, these factors combined to bring two key changes to the market. Firstly, the number of bidders for each business has been drastically reduced, lowering pressure and competition. And secondly, caution among buyers has increased significantly, prompting investors to be more demanding when making new acquisitions.

Obviously, sellers need to keep these issues in mind when they put their business on the market. But we hope our subscribers who are out to buy a business are also keeping an eye on the broader business atmosphere; a company's worth (and the price worth bidding for it) will of course change in different economic periods and it is clearly the case that now is looking like a good time to buy a business for less. 

For a complimentary consultation:
Contact  Cecil Williams (cecil@bizbrokerflorida.com) or call  at 888-925-5055 ext.206.  Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com  Also, visit our Florida Business Exchange website at www.fbxbrokers.com

Life After Selling A Business - Forbes

Life After Selling A Business :

The one question that a business owner needs to answer when I interview them concerning selling their business is, what will you do after selling your business? If a business owner doesn't have a good answer to this question, they usually aren't really to go through the complex process of selling their business

This article highlight what one business experienced regarding this key question.

Read: Life After Selling A Business
 
For a complimentary consultation:
Contact  Cecil Williams (cecil@bizbrokerflorida.com) or call  at 888-925-5055 ext.206.  Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com  Also, visit our Florida Business Exchange website at www.fbxbrokers.com

Avoid These Mistakes When Buying A Business

Buying a Business? Avoid These 5 Major Mistakes

Here is a quick summary of items to check so that you have a better chance of buying a business and ensuring a successful outcome years down the road.

Avoid these 5 major mistakes when buying a business:

1) Due Diligence, Due Diligence, Due Diligence
Doing a solid job of due diligence will help you avoid buying the wrong business or paying too much for the business. Executing a structured plan is critical to ensure by the financial and business operations aspects of a business are understood

2) Not Having Enough Cash Reserves
Do not buy a business until you have the necessary funds to both buy the business and the necessary funds to keep it open after the purchase. 

3) Assuming Cash Flow will Cover Debt
There will always be a transition period when buying a new business. The transition can impact cash flow. Most buyer under estimate this impact.

4) Paying for Potential 
In many businesses the value of the business is based on the condition at the time that you purchase it.  There may be circumstances where potential is worth $, such as in a franchise or other proven situation, areas such as patents, devices and other situations where there is value in potential.  Potential is something that typically requires your expertise & research to continue & make prosper, then it becomes your choice to gauge the potential and possibly negotiate the price through an earn-out agreement to avoid full risk. 

5) Wrong Entity Structure
Consult an attorney and possibly an accountant or financial advisor to help determine what the best entity structure for you is.

For a complimentary consultation:
Contact  Cecil Williams (cecil@bizbrokerflorida.com) or call  at 888-925-5055 ext.206.  Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com  Also, visit our Florida Business Exchange website at www.fbxbrokers.com

Business Valuation Assessment

What Information is Needed to do a Business Valuation Assessment?

This video provides outlines the basic information needed to approximate the range of the most probable selling price a business might achieve in the marketplace.

For a complimentary consultation:
Contact  Cecil Williams (cecil@bizbrokerflorida.com) or call  at 888-925-5055 ext.206.  Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com  Also, visit our Florida Business Exchange website at www.fbxbrokers.com

Aiding Sellers In Receiving The Maximum Price For Their Business

Aiding Sellers In Receiving The Maximum Price For Their Business

According to the International Business Broker Association IBBA), businesses valued at less than $2 million dollars tend to take seven months or less to close. Those valued between $2 and $5 million take eleven months or less to successfully close while those valued at $5 million or more take anywhere from six to nine months to sell. Of those businesses valued at $5 million or more, 8% took two years or longer to successfully close. Brokers do expect to see an upward trend in this market over the next three months.

Adequate seller representation is needed during this process to generate a satisfactory outcome. According to the IBBA, unrealistic expectations are the number one reason why sales are not completed. My goal is to ensure each client understands the sale process. In order to achieve this goal, the first step is to have the value of the company calculated. Sellers often make use of the net income on the federal tax return to determine cash flow. In all actuality, non-cash expenses must be added back into earnings along with discretionary expenses. Market conditions and valuations must be added in along with buyers' and lenders' approaches. I can be of great assistance during this process as I provide reasoning and rationale to back up the valuation."

When the valuation is complete, I develop a customized and confidential marketing plan to target those buyers most likely to pay full value for the business. My company, Florida Business Exchange, maintains databases of potential buyers which meet necessary requirements such as ability to run the company successfully and have the funds necessary to purchase the business. My goal is to find a number of potential buyers to ensure each company sells for the highest price possible.  

Once a buyer has been located, I manage the period between receiving the offer and closing the transaction.  I facilitates the due diligence process while coordinating with outside legal counsel to ensure all necessary legal documents are drafted. As the broker I also coordinate the final closing date and obtain approval from all parties. I will attend the escrow closing to ensure all documents are in order.   

For a complimentary consultation:
Contact  Cecil Williams (cecil@bizbrokerflorida.com) or call  at 888-925-5055 ext.206.  Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com  Also, visit our Florida Business Exchange website at www.fbxbrokers.com