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Selling Q&ATips for SellingWhy Intermediary's

 

 

Why use an intermediary

                                                                                                

1.  Professional Advice

    The process of buying or selling a business requires dedication and the attention of a professional with the knowledge of the complete flow of a business transaction, as well as a team in place to accomplish every aspect of the transfer.  Marketing and facilitating  a business  transfer is a full-time job!  You deserve someone who will work as hard as you do.  A qualified broker or intermediary will save business owners and prospective buyers money by helping them avoid costly mistakes, effectively marketing the appeal of the business, and maximizing exposure to serious, qualified buyers

2.  Pre-Qualify Buyers

     90% Of Potential Business Buyers Never Buy A Business!

    This alone may be reason enough for a seller to retain a business broker or intermediary to represent them in selling their business. A professional broker knows how to sort through the many non-qualified potential buyers to get to the few who actually do have the means and motivation to buy a business. Once the unqualified potential buyers have been culled out, still only somewhere around 50% of these folks eventually buy a business. For this and many other reasons, we strongly recommend that sellers use a professional intermediary to represent them in selling their business.

3.  Valuation

    There are three key ingredients to valuing a business.  One is understanding all of the financial information, ratio's, formulas, comparable businesses, rules of thumb, and the industry.  The second ingredient is first hand knowledge and experience in mergers and acquisitions along with the business savvy to truly understand the value of a business.  The final key is being able to look at the business objectively.  A true professional business intermediary has these ingredients.  You must ask yourself a few questions: Does your real estate agent really understand M&A or would you pay them to tell you how to run your business?  There are some accountants or attorney's who are great M&A specialists, but they are few and far between.  CPA's and attorney's have achieved a great level of competence in their respective field and you pay them to: understand taxes, know how to make a general ledger entry, understand contract law or litigate, etc.  How many other businesses, outside of their practice, have they owned, managed, bought, sold, or valued?  Make sure the professional you partner with fits the job you need to do.

4.  Confidentiality

    This is vitally important when working with anyone during the selling process.  Protecting information about the business for sale from being presented to competitors, customers, vendors, employees or unqualified buyers should be a priority.  It is hard to maintain confidentiality if you, the owner, or business leader are presenting the initial information to buyers.

5.  Time

    Can you devote the necessary time to effectively sell your business, diverting significant time, effort and resources to that process, while continuing to manage your ongoing business productively?

 

Why use Veracity?

There are many reasons.  Most importantly, Veracity is a true partner you can rely on and trust.

The sale of your business demands a professional, just as running your business has demanded your professional attention.  Veracity has the  expertise, tools, and professional team to market and sell your business successfully on a national basis. The objective is to protect your investment and maximize your net after tax profit on the sale.  It is to your advantage and in connection, your brokerís as well, to obtain the best possible price that a reasonable buyer will pay. 

We are also linked in with other brokers across the country.  Finding one prospective buyer is not the ideal scenario. Creating competition among multiple buyers should be a brokers goal as it leads to higher sale price.  A buyer without competition feels free to offer less than the full value of a business.  When a buyer knows several other buyers are looking at the same business, they are hesitant to offer less than the price and terms being solicited.   

A buyer living on the West Coast, for instance, who wanted to relocate to another part of the country would find no value working with a broker that is only local because the broker would not know what was available outside the local market.  As a result, a prospective buyer would need to go from broker to broker in the desired area.  This only causes frustration and a waste of time, and seldom, if ever, results in completion of a business sale.  Now, prospective buyers can contact Veracity, and they will have access to listed businesses, which yours may be a part of,  from partners in offices in the desired area.   

Another factor to consider is packaging. Poor packaging of a business is one of the major complaints expressed by buyers.  We expend a lot of effort to ensure we have the best and most professional packaging in the industry, ensuring that sellers are effectively motivating the acquisition of their business. All Veracity deliverables have standardized and detailed packaging, which, in addition to its appeal to prospective buyers, makes it easy for anyone to quickly understand a business listed by another.  When a prospective Buyer is presented the information on your business, the Buyer will be able to have most of his questions answered and be able to make an informed buying decision.

CONFIDENTIALITY.  We take it very seriously.  Some in our industry do not.  Veracity protects information about the business for sale from being presented to competitors, customers, vendors, employees or unqualified buyers.  In addition, Veracity requires potential buyers to provide proof of financial ability to acquire your business and a non-disclosure to be signed.

 

 

Contact Information

Telephone
701-388-3304
FAX
603-258-6125
Postal address
1304 23rd Street South, Fargo, ND 58078
Electronic mail
General Information: rklinger@seekveracity.com
Sales: sales@seekveracity.com
Webmaster: webmaster@seekveracity.com

 

Copyright © 2006 Veracity Business Brokerage and Consulting, Inc.