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Business Broker Report 16: 3 Tips to Avoid Getting "Burned" by Your Broker.

Posted on Mon, Mar 23, 2015

describe the imageSo, you’ve finally decided to sell your business. Congratulations - it’s a tough decision to make.

But the decision-making isn’t over yet. Now, it’s time to choose your Broker - the firm you need to handle your sale and get you the best possible deal for your business.

But how do you make sure you’re not getting burned by your Broker?

Follow These 3 Tips to Make Sure You Don’t Get Ripped Off:

  1. Don’t Pay Any Up-Front Fees.
    You’ve probably attended seminars where they promise to sell your business for three, four, five or even ten times its true value.
      Back away – don’t get sucked in. This is actually a very sophisticated scam.

    Companies like this put on slick presentations, but are really only interested in collecting big up-front fees, not in actually selling businesses. They claim they can create a “frenzy of buyer interest” that will “skyrocket the price to stratospheric levels.” Don’t be fooled. It’s all smoke and mirrors. They want to get you excited and then stick you with a $30-60K up-front fee.
    Money you don‘t get back when they fail to sell your business!

  2. Use a Brokerage Firm that Doesn't Get Paid Until You Do. 
    Not all business brokerage firms ask for up-front fees.
      Some operate strictly on a success fee basis. These firms get paid only when the sale of your business actually goes to closing. These success-fee based Brokers have the confidence that they can get the deal done. After all, if your sale doesn’t close, they don’t get paid.
     
  3. No Track Record? No Way! 
    You don’t want your Business Broker or M&A Advisor to learn on the job with your sale. Do your due diligence! Check their track record, case studies and success stories, making sure they’re credible. Probe into past and present clients. Are the clients satisfied? Do they even exist?

Don’t learn the hard way -- if it looks too good to be true, it probably is. Stick with a reputable Broker with a solid track record who is willing to earn his success fee only when the sale of your business is completed!

If you’re ready to sell your business - with no up-front fees and no smoke and mirrors - please click here or on the link below or call us at 888 468-1660. We’ll be happy to schedule a free initial consultation and complimentary business appraisal.

There is never an up-front cost or obligation, and all communications will be held in the strictest confidence. 

Sell Your Business The Right Way

Prime Investments Business Brokers takes the risk out of selling. For over 25 years Prime has helped owners in Virginia, Maryland, Florida, Georgia, Pennsylvania, Delaware, Washington, D.C. and New Jersey get the best deal when they sell their businesses – without charging any upfront fees.

Tags: M&A Advisor, sell your business, selling your business, business broker

Business Broker Report 15: Are Market Conditions Right to Sell My Business?

Posted on Mon, Sep 08, 2014

tired business womanYou want to sell your business, but you don't have to sell it today. After all, you've worked hard for many years to build the value of your business. Sure you want to spend more time with family and friends, travel, play golf or do whatever it is you like to do when you're not working. But not at the cost of leaving money on the table. What's the point of working hard for all these years if you can't sell your business for top dollar? You can always stay on a few more years if you have to. As they say, timing is everything.

Is now the right time to sell your business?

We can't answer that question for you from the personal point of view - you and your family have to make that decision. But we can provide some insight into the market for selling businesses. From what we see, current market conditions are extremely favorable to business sellers.

Here are three factors that lead us to conclude that current market conditions have created the perfect time to sell your business:

 

Pent-up Demand
Many business owners who would have liked to have sold over the last few years held off because of the recession. Buyers have had thin pickings. This created a huge backlog of buyers - individuals, equity funds and companies - searching for businesses to buy.

Buyers are competing amongst themselves for the few good businesses available for sale, keeping valuations high. That makes for a real seller's market.

 

Availability of Capital for Acquisition Loans
Buyers - equity funds, companies and individual investors - are flush with cash. And lenders, who need to make loans to stay in business, are actively competing to find good deals to fund.

Additionally the Small Business Administration (SBA) recently increased its ceiling for business purchase loans and streamlined its approval process, making it easier than ever for buyers to be approved.  

Buyers have access to the necessary funds. They're just waiting for the right investment opportunity.

 

Low Interest Rates
Interest rates are still quite low. Low interest rates make it easier for a buyer to afford a strong sales price by lowering monthly debt-service payments. With low interest rates, a buyer can pay a strong price for your business and still stay within the lender's approvable debt-service to revenue ratios. It's a win-win situation. You achieve a high price for your business and the buyer keeps his monthly payments affordable.

But this window of opportunity created by low interest rates won't last forever. As you've probably heard, interest rates are expected to climb as the economic recovery matures. It takes up to a year to sell a business. If you're thinking about selling, you should start the process now.

 

Low interest rates, pent-up buyer demand, and the increased amount of available capital have combined to create an ideal situation for business owners thinking about selling. Is this a good time to sell your business? No . . . it's the perfect time!

 

If you would like to see if the time is right to sell your business, please click here or on the link below or call us at 888 468-1660. We'll be happy to schedule a free intitial consultation and complimentary business appraisal.

There's never an up-front cost or obligation, and all communications will be held in the strictest confidence.

Is This the Right Time to Sell My Business?

 

Prime Investments Business Brokers takes the risk out of selling. For over 25 years, Prime has helped business owners in Florida, Georgia, Virginia, Maryland, Pennsylvania, Delaware, New Jersey and Washington, DC sell their businesses - without charging up-front fees.

 

 

 

 

Tags: business brokers, busines broker, sell your business