Free
on-site business evaluation,
using several valuation formula's, drawing upon our
experience as well as a review of available comparable
transactions. Through this process we are, with your
assistance, able to establish an appropriate selling
price.
Preparation
of
marketing package that describes the business and sets
forth the details of the company as well as a
potential structure for the transaction with regard to
financing alternatives.
Presenting
the
transaction to qualified prospective purchasers after
they have been fully screened by us. The potential
buyers may come from our existing customer data base
or will be uncovered through a logically designed and
well thought out marketing plan specifically
structured for your business.
Confidentiality
-Confidentiality must
be a key concern for sellers. Using a multi-list
service would be like telling the world you're selling
your business. Maintaining strict confidentiality is
necessary in order to safeguard the ongoing business.
Neither your employees, vendors, creditors or
competitors will know you are marketing your
business.
Establish
Value -
We show
you how to ready the business for sale including how
to prepare the financial statements to properly
reflect your business's value. We will use various
valuation techniques and identify several different
pricing options for you to chose from.
Qualified
Buyers -
We do not
waste your time bringing you buyers that are not
qualified to purchase your business. We spend time
interviewing and profiling all potential buyers,
financially, ability to run the company, and
experience.
Professionalism
- RLG's professionals
can offer expert advice on the many financial and
personal ramifications of a sale or merger. When a
business is moving toward closing we work with you,
your accountants and your attorneys to make sure all
the details of sale are taken care of. Throughout the
transaction we will save you time and money. We have
never gone to the closing table and not had a
transaction close.
Negotiation
- Our only clients are
owners of privately held firms. We represent only one
party in the transaction - the
seller.
Fees
- Until RLG sells your
business there are no fees whatsoever.
No Retainers
No Consulting Fees
No Evaluation Fees
No Advertising
Fees
As an owner of a business, you may make the decision to sell for various reasons, including a desire to improve liquidity, the opportunity to undertake a new endeavor, pending retirement or simply the desire to reap the rewards of the many years of effort that have been put into your company.
Once the decision to sell has been made, many questions will need to be answered:
What is the value of my business?
How can my business be sold without disrupting day to day operations?
Who is best qualified to find a buyer for my business?
What is the best structure for the sale of my business?
The Ronald Lawrence Group can provide answers to all these questions as well as many other questions that will arise.
We provide experienced, professional and confidential representation which is what is needed in order for you to receive the highest value for your business.
Important
Questions the RLG Can Help You Answer
Q. What
is a business broker?
A. A
business broker is a professional who specializes only in
helping people buy and sell businesses. They are trained in
evaluating and pricing a businesses, qualifying and working
with prospective buyers, negotiating and most important,
structuring the transactions.
Q. Are
Real Estate Agents also Business
Brokers?
A.
No, while there are some similarities in how they operate,
real estate agents sell real estate while business brokers
sell only privately held companies. The techniques of
pricing, marketing and negotiating a business transaction
are completely different from selling a piece of
property.
Q. How
important is confidentiality in selling a
business?
A. Confidentiality is
crucial to a successful sale. If employees, customers,
creditors, suppliers or competitors hear that a business is
for sale, it could have a negative impact on the business.
thereby making it less desirable. Between a business owner
and broker, there must be complete trust and
confidentiality.
Q. How do
you value a business?
A. Helping to value a business is one of a business
broker's most important roles. The broker considers the
market area the business is in and then compares the
business to similar companies that are selling in the
market. The broker also looks at the cash flow, plus the
tangible and intangible assets of the business and taking a
buyer's perspective, determines what the market would pay
for the company. The broker must assess such diverse
factors as how long the business has been established the
number and nature of competitors and seasonal variations in
cash flow.
Q. Is
there any charge for evaluating my
business?
A. No, there should be no
costs to the seller until the broker accomplishes what he
is employed to do - sell your
business.
Q. Are
there any up-front costs?
A. No, we evaluate,
package and market the business and get paid only when we
get results.
Q. What
is considered Net Operating Income?
A. NOI consists of all non-business
related expenses charged to the company, plus non-recurring
expenses. Included in this amount is the owner's salary,
bottom line profit of the business, any over paid
family
member (i.e., the wife is part-time bookkeeper and earns
$30,000), interest expenses if there is a loan on the
business depreciation, etc. By the same token, if there are
expenses a new owner
would incur that aren't charged to the business, they would
have to be put back. (i.e., wife does bookkeeping but isn't
paid).
Q. Can I
price my business on potential?
A. The selling price of a
business is based on past performance, however a buyer will
not buy a business without potential.
Q. Can I
get all cash for my business?
A. The Ronald Lawrence
Group works with SBA Lenders who are aggressively lending
money for the purchase of privatory held
businesses.
Q. I'm
intimidated by all the legal and tax issues. What should I
do to protect myself?
A. Professional advice is a must. RLG can help you
understand the legal and tax issues and will guide you in
managing your advisors.
Q. Will I
need to sell my corporation with the
business?
A. In most instances the
buyer will purchase the assets of the company, both
tangible and intangible, and you will keep your
corporation. The assets will include furniture, fixtures,
inventory, DBA name, etc.
Q. If I
have a good lease, does this make my business more
valuable?
A. Possibly, a lease with
low rent contributes to a good bottom line which adds to
the value of the business. Length is not a determining
factor.
Q. What
happens to my accounts receivable?
A. The accounts receivable
and payables belong to the seller. The difference between
the two is additional money that the seller will be able to
collect as the receivables come in and that is profit for
the seller
Q. Must I
pay off all my debts?
A. Yes, all outstanding
bills must be paid unless expressly agreed to be assumed by
the buyer. An exception is leased equipment if the expenses
of the lease are included on the P &
L.
Q. How
long will I have to stay with the business after the
sale?
A. Most businesses require
30-60 days of training. If the business requires more than
60 days of training, the buyer generally will work out an
arrangement with the seller to pay him for his time, or to
have him available as a consultant.
Q. Is it
necessary to give a sole and exclusive listing to sell a
business?
A. A professional business
broker works as the sole and exclusive agent for the
seller. This enables both the broker and the seller to
maintain the highest level of confidentiality and means
that their organization will be the only ones engaged in
selling the business. Without a sole and exclusive
agreement, a quality broker would not be willing to put the
considerable time and expense needed to professionally
package and market the business.
Q. How
long is the listing?
A. The term of the listing
agreement varies from six months to a year. The average
selling time of most types of businesses is 100 to 120
days, but that timing can be affected by specific market
conditions.
Q. Won't
I be better off selling my business through a multi list
service?
A. No selling a business in not like
selling a home. Confidentiality must be a key concern for
sellers. Using multi-list service would be like telling the
world you're selling your business. Maintaining strict
confidentiality is necessary in order to safeguard the
ongoing business.
Q. Why is
The Ronald Lawrence Group the logical choice to market my
business?
A. Since its founding in 1985, The Ronald
Lawrence Group's focus has been to serve the needs of the
middle market. The specialized products and services
available are designed to provide owners with options that
enable them to make informed decisions regarding the
direction of the business and their own personal future and
the means to implement their decision.