Representing Your Interest Throughout the Business Sale Process

There are three key factors as to why it’s best to work with a Business Broker when it comes to selling your business.

1) Valuing the business: A Business Broker is trained to value businesses using several methodologies and estimate its probable selling price. This process is as much about discovering the salability of the business as it is about the calculation. Business financials can be complex, as there is a lot more to a business valuation than fair rent and square footage. It needs to be presented in an attractive yet accurate manner to potential buyers.

2) Finding the buyers: A good business broker has access to multiple national websites, leverages regional and local networks, and executes a customized marketing plan to reach as many potential buyers as possible. This is done primarily using a “Blind Profile”—a marketing piece to gain potential buyers’ interest while keeping the name and specific location of the business confidential.

3) Confidentiality: While Realtors are experts in different types of real estate, marketing a business for sale is an entirely different process. If the Agent is not properly screening inquiries and requiring Confidentiality Agreements from buyers, your business and its value are at risk. Listing real estate for sale with the address or pictures is similar to posting a “For Sale” sign in the front window. Customers, employees, and competitors often have a distorted view of a business sale as a sign of weakness or uncertainty. Confidentiality is paramount!

While selling a business can be daunting, we strive to stay one step ahead and reduce your stress during the process. The first step is a confidential meeting with Savvy to learn about each other. We then calculate the most probable selling price and outline the strategy to achieve the best outcome for you.

Once we determine the best time to sell your business, we set up a timeline for future discussions and listing the business for sale. After signing an Exclusive Right to Sell Listing Agreement, we collaborate with you to develop a customized marketing plan. Throughout the process, we exclusively represent you, the Business Owner.

The average time to sell a small business is nine months, but every business is different.

We discuss possible sources of funding business acquisition with potential buyers and connect them with commercial lenders and private investors. Quite often the Seller finances a portion of the total sale price.

At Savvy Business Brokers, confidentiality is a top priority. We are regulated by the WI Department of Safety and Professional Services and adhere to International Business Brokers Association (IBBA) ethics at all times. We safeguard non-public information in the strictest of confidence and have controls in place to maintain the confidentiality of Clients AND Customers.

After learning about your business, compiling financial statements, and researching industry-specific and economic data, Savvy Business Brokers prepares a Broker Estimate of Value report calculating the most probable selling price.

Savvy Business Brokers has access to multiple databases of qualified buyers and investors for all types of businesses. We conduct weekly calls with our national network of independent business brokers as well as monthly calls with our partner CPA firm to find potential buyers for active listings. We also receive frequent inquiries from private equity groups, family offices, and individuals seeking business acquisitions.

When a potential buyer inquires about a listing, we contact them directly to first gauge their level of interest and learn about their background. We also ask general questions such as why they’re interested in a specific business, and how much they have to invest. It is our job to weed through the “tire kickers” and find serious buyers.

The typical term for a full-service listing is one year.

Savvy Business Brokers writes a non-binding Letter of Intent (LOI). This is a framework of the final agreement the Seller and Purchaser have agreed to. After Due Diligence contingencies are waived, an attorney, usually the Purchaser’s attorney, will draft a binding Definitive Purchase Agreement, or Asset Purchase Agreement.

Savvy believes its clients will achieve the best outcome by leveraging our professional alliances. Savvy is part of the MBE CPA’s family of companies. It is a member of the International Business Brokers Association and Midwest Business Brokers & Intermediaries. And it is an affiliate of Bristol Group, a network of independent Business Brokers and M&A Advisors.

The overall marketing strategy will vary from business to business, and we use every tool at our disposal such as websites, professional networking, and Business to Business (B2B) marketing. The goal is to maximize exposure through local, regional, and national networks.

We screen potential buyers during our initial contact and obtain a signed Confidentiality Agreement or Non-Disclosure Agreement (NDA). We are present at subsequent meetings between the Sellers and Buyers. Eventually, Sellers and Buyers often meet one-on-one to come to a meeting of the minds.

Business Sellers and Buyers are responsible for all third-party fees they incur such as escrow and attorney’s fees.

While Savvy Business Brokers usually represents business owners looking to sell and exit, we also help Buyers target, approach, evaluate, negotiate, and acquire businesses when they have specific search criteria to meet their goals.