Selling a Business

The decision to sell your business can be the most important decision of your life. Turning your operation into cash is a complex affair involving hundreds of variables. You face an uncertain economy, unbridled competition, sophisticated buyers and, without professional guidance, you face them alone.

Consider the Facts:

One out of four American businesses change hands each year.
The vast majority of all business sellers are first-time sellers, unprepared to meet the complexities and time demands of a business sale transaction.
"Do-it-yourself" sellers typically receive considerably less than the fair market value of their businesses.
Over 50% of all small-to-medium sized business sales, arranged by sellers without professional help, result in transactional problems, dissatisfaction or default.
Today's business buyer demands reliable financial and operational information that can be confirmed.

If you are planning to sell your business, you owe it to yourself to call Berkowitz Acquisitions. There is no obligation. We are available for a confidential conversation about how to approach selling your business and valuing your business.

Why use a professional business broker, and specifically why Berkowitz Acquisitions?

Your information will always be kept confidential.
You will get professional help for a very complex process.
Your time will not be squandered on window shoppers. We pre-qualify all potential buyers.
You will have access to a worldwide network consisting of thousands of buyers.
You will have multiple buyers competing for your business.
You will get help establishing the correct asking price.
Your business will be sold in the shortest possible time.
You will get the maximum possible selling price.
You will have the time to run your business, leaving the selling to us.

We focus on your specific industry to find the right buyer. With our worldwide affiliation, our members’ business offerings are regularly presented to numerous potential domestic and international buyers looking to relocate to our area. This means faster results for you. Our service, dedication and drive are your guarantees that if you are prepared to sell your business, we are ready to sell it for you.

Let us help you each step of the way:

Comprehensive Business Review and Analysis

Before offering your business for sale it is critical for you, the Seller, to know exactly what you are selling and its true value. We have many years of business experience in analyzing and improving businesses through our consulting affiliate Berkowitz Consulting, Inc.

We can understand your products and/or services, your markets and the completion. Whether or not you have a proprietary position can make a significant difference in your selling price. So, we analyze your business and create a report that identifies and highlights all of the important factors. Eventually, this information will be used for valuing your business and marketing of your business to get the best possible price.

Value-added Improvements for your Business

Many times we find that there are deficiencies in your business or opportunities for improvement that if implemented can create significantly more value for your business with only minimal time and expense. We will advise you on the things you can do for your business that will provide such additional value.

Strategic Positioning of your Business

The most important question to ask is "Who is the best buyer for my business." The answer may be related to who would pay the most, but could also be related to who would be in the strongest financial position and be able to provide the best terms. Once you have decided the kind of buyer that you are targeting, we will show you how to make a few changes that would make the business more attractive.

Valuation of your Business

There are many different ways to value a business. There are industry standard methods, there are estimation methods and there are more sophisticated methods that take more time and need more expertise. Depending upon the anticipated market for the business, the Seller needs to select a credible method that provides the highest possible value, but must also be realistic and honest. We will help to chose the appropriate methodology and determine a business value that is fair to the Seller as well as defendable to the Buyer.

Preparation of Your Business for Sale

Just like getting a home for sale, a business should not be put on the market until it is ready. For example, the accounting must be accurate, clear and defensible with backup data. Also, the Seller must inventory and get ready all of the records that would expected to be eventually requested by the Buyer. All information must be reviewed so that there are no surprises. Remember, the credibility of the Seller is also important to the successful sale of a business.

Creation of a Marketing Plan

Depending on the target market for your business, a well-directed, efficient marketing plan needs to be established. All of the rules of marketing for products or services also apply to a business for sale. We have experience in developing such plans to get your business sold in the shortest time at the lowest cost to you.

Creation of Selling Documents and Advertising

Depending on the size of your business, various materials need to be developed. these materials may include a non-confidential business summary (not identifying the specific business), a confidential business summary, and a detailed confidential business review.

The latter documents would only be sent to prospective buyers after they have been qualified (see “Qualification of Bona Fide Buyers” below) and have signed confidentiality and non-disclosure agreements. Also, depending upon the marketing plan appropriate advertising could be designed and placed in trade journals, newspapers, or on the Internet.

Confidentially Networking the Sale

Many times a business fits strategically well within another company or or group of companies. In this case, we would confidentially investigate these possibilities first because the sale can be rapid and still derive a high value. We have our contacts in many industries and are able to target some of the more likely possibilities without disclosing the specific seller. With our extensive contact base, there is a good possibility that just the right buyer is located.

Confidentially Advertising your Business

Here is where we put all of our resources to work. We have the ability to list your business not only in the local area, but throughout the state using the best listing services. We also have the ability to list your business national and internationally, if that is required. Our skills in writing non-confidential business summaries are unsurpassed. Such summaries, if written well, deliver the best buyers from the marketplace.

Qualification of Bona Fide Buyers

We receive all calls and emails responding to your business listings and advertising. We screen these prospects to determine a) if they are qualified buyers and b) if they are good buyers for your business. Only then will they be considered to be a bona-fide prospect. We still do not disclose your business until we receive from them a signed Non-Disclosure and Confidentiality Agreement and they pass through our filters after some due diligence. Your time will only be spent with Buyers who have the desire and means to purchase your specific business.

Review and Analysis of Offers

You may receive many offers for your business, some of which may not be worthy of consideration. However, we will present all offers to you after we review each of them and provide you with our recommendations.

Selection of the Best Offer

While we will be providing our recommendations, it will be your choice as to which offer to accept and under what terms. However there may be two or more offers that are acceptable to you. We can help you derive the greatest value for your business by creating a “silent auction.” This and other techniques of getting the best price for your business are available to you.

Negotiating the Best Terms and Structuring the Transaction

Once a specific Buyer and price is approved, there are many other issues to be negotiated, including the structure of the deal and some of its finer details. Fore example, the purchase and sale can be fashioned to provide the best tax consequences for both the Buyer and Seller. We will work with you lawyer and accountant to help you not only derive the best price for your business but the most advantaged terms.

Providing Support through Due Diligence

Just after singing a Purchase Agreement, but before closing, there is a due diligence period where the Buyer has the opportunity to review all of the records of the business to confirm the representations. We will always be there to help make sure that all of the Due Diligence materials are available for the Buyers review. We will also act as the conduit between Buyer and Seller, thus saving you time.

Closing the Transaction

Once due diligence is completed, financing is arranged, leases assigned, utilities are transferred, inventory is counted and all documents are prepared, Closing can occur. Again, while this sometimes is a complicated process, we will be there with your attorney to help the process go smoothly.

Helping with the Transition

Once the business is officially transferred to the new owner, we will help with the transition process. There will be many things to do including meetings with employees, transfer of files, updating of computers, transitional training by the Seller, as well as a series housekeeping tasks that are typical of such transitions. We will be there to help.

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