Seller's Page
 |
 |
 |
 |
 |
 |
 |
Benefits to Sellers:
Why should you use Tait & Associates to sell your business?
There are many reasons. Most importantly, Tait & Associates offers business
owners the opportunity to have the largest business brokerage network in the
world working to sell your business, not just one local broker. Common sense says
it is better to have the potential of 450 affiliate brokers seeking the right buyer for
your business instead of one local office.
Finding one prospective buyer is insufficient. Creating competition among multiple
buyers should be a brokers goal, not to just find a single buyer. 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.
As a member of the California Association of Business Brokers network, Tait &
Associates has affiliate offices covering every state in the nation. No other
brokerage firm even comes close. An individual living on the West Coast, for
instance, who wants to relocate to the Southeast would find no value working with
a broker locally 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 caused frustration and a waste of time, and
seldom, if ever, resulted in completion of a business sale. Now prospective
buyers can contact Tait & Associates and the prospective buyer will have access
to listed businesses from Affiliated offices in the desired area.
Another factor to consider is packaging. Poor packaging of business is one of the
major complaints expressed by buyers. We have been told by hundreds of
buyers that Tait & Associates has the best and most professional packaging in the
industry, ensuring that sellers are effectively motivating the acquisition of their
business. All Affiliate Brokers have standardized and detailed packaging, which,
in addition to its appeal to prospective buyers, makes it easy for one Affiliate
Broker 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 is vitally important when working with any broker during the
selling process. Tait & Associates protects information about the business for
sale, we require a signed Confidentiality Agreement from all potential buyers. In
addition, Tait & Associates require potential buyers to provide proof of financial
ability to acquire your business. So, the Seller can make an informed selling
decision, all within the confines and security of confidentiality.
Why should you use Tait & Associates to sell your business?
There are many reasons. Most importantly, Tait & Associates offers business
owners the opportunity to have the largest business brokerage network in the
world working to sell your business, not just one local broker. Common sense says
it is better to have the potential of 450 affiliate brokers seeking the right buyer for
your business instead of one local office.
Finding one prospective buyer is insufficient. Creating competition among multiple
buyers should be a brokers goal, not to just find a single buyer. 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.
As a member of the California Association of Business Brokers network, Tait &
Associates has affiliate offices covering every state in the nation. No other
brokerage firm even comes close. An individual living on the West Coast, for
instance, who wants to relocate to the Southeast would find no value working with
a broker locally 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 caused frustration and a waste of time, and
seldom, if ever, resulted in completion of a business sale. Now prospective
buyers can contact Tait & Associates and the prospective buyer will have access
to listed businesses from Affiliated offices in the desired area.
Another factor to consider is packaging. Poor packaging of business is one of the
major complaints expressed by buyers. We have been told by hundreds of
buyers that Tait & Associates has the best and most professional packaging in the
industry, ensuring that sellers are effectively motivating the acquisition of their
business. All Affiliate Brokers have standardized and detailed packaging, which,
in addition to its appeal to prospective buyers, makes it easy for one Affiliate
Broker 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 is vitally important when working with any broker during the
selling process. Tait & Associates protects information about the business for
sale, we require a signed Confidentiality Agreement from all potential buyers. In
addition, Tait & Associates require potential buyers to provide proof of financial
ability to acquire your business. So, the Seller can make an informed selling
decision, all within the confines and security of confidentiality.
Why use a business broker?
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. Tait & Associates 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... All with complete confidentiality.
If you are interested in selling your business and don’t know the answer to any of
the questions below, you could benefit from the assistance of Tait & Associates
(and you are not alone!).
1. How do you reach qualified buyers, including possibly competitors without
disclosing your intentions to sell?
2. How do you evaluate your business objectively to ensure you receive top
dollar for your investment and avoid costly negotiating tactics?
3. How do you prepare and provide the information a prospective buyer will
require to interest him in pursuing your business in favor of other options?
4. How do you arrive at the best price and terms, including the intangible and
goodwill values of your business?
5. How do you maximize your favorable exposure to potential offers while
minimizing your potentially damaging public exposure to customers, competitors,
employees, and suppliers?
6. How do you market your business in all of the appropriate markets,
databases, and media efficiently, effectively and confidentially?
7. How do you screen and pre-qualify buyers, determine their motivations,
managerial capabilities, and financial strength?
8. How do you effectively sell your business, diverting significant time, effort and
resources to that process, while continuing to manage your ongoing business
productively?
Business owners have focused their entire lives on growing and developing their
businesses and seldom know how to answer all of the questions above. That is
where Tait & Associates can come in. The sale of your business demands a
professional, just as running your business has demanded your professional
attention. Tait & Associates has the expertise, tools, and professional team to
market and sell your business successfully on a national basis. The objective is
to protect your business investment and maximize your net after tax profit on the
sale. It is to your advantage (and your broker’s as well) to obtain the best
possible price that a reasonable buyer will pay. Tait & Associates strives to
maintain high ethical standards and communicate in an open and honest manner
in all business relationships.
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. Tait & Associates 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... All with complete confidentiality.
If you are interested in selling your business and don’t know the answer to any of
the questions below, you could benefit from the assistance of Tait & Associates
(and you are not alone!).
1. How do you reach qualified buyers, including possibly competitors without
disclosing your intentions to sell?
2. How do you evaluate your business objectively to ensure you receive top
dollar for your investment and avoid costly negotiating tactics?
3. How do you prepare and provide the information a prospective buyer will
require to interest him in pursuing your business in favor of other options?
4. How do you arrive at the best price and terms, including the intangible and
goodwill values of your business?
5. How do you maximize your favorable exposure to potential offers while
minimizing your potentially damaging public exposure to customers, competitors,
employees, and suppliers?
6. How do you market your business in all of the appropriate markets,
databases, and media efficiently, effectively and confidentially?
7. How do you screen and pre-qualify buyers, determine their motivations,
managerial capabilities, and financial strength?
8. How do you effectively sell your business, diverting significant time, effort and
resources to that process, while continuing to manage your ongoing business
productively?
Business owners have focused their entire lives on growing and developing their
businesses and seldom know how to answer all of the questions above. That is
where Tait & Associates can come in. The sale of your business demands a
professional, just as running your business has demanded your professional
attention. Tait & Associates has the expertise, tools, and professional team to
market and sell your business successfully on a national basis. The objective is
to protect your business investment and maximize your net after tax profit on the
sale. It is to your advantage (and your broker’s as well) to obtain the best
possible price that a reasonable buyer will pay. Tait & Associates strives to
maintain high ethical standards and communicate in an open and honest manner
in all business relationships.
What affects the selling price?
Several factors come into play and can affect the sales price. One of the most
critical is the “terms” or the amount of down payment and the amount financed.
Over eighty percent of all businesses sold above $100,000 are sold with one-third
or less down and the owner financing the balance. Asking for one-half down will
reduce the price by approximately twenty percent. Asking for cash will reduce the
price to about forty to sixty percent of the amount attainable with one-third down.
Down payment or the “terms” is a key factor, because a buyer is trying to buy as
much business as possible for the money available for down payment. So, when a
seller asks for $200,000 down on a $400,000 value business, buyers prefer to
continue looking until a $600,000 value business is found where the owner will
accept $200,000 down and finance the balance. The seller who asks for all cash
or a large down payment is not going to succeed in obtaining the full fair market
value of their business, because buyers know they can buy three times as much
business for the same investment. In a nutshell, high percentage down payments
cause buyers to discount offers.
A second critical factor is the quality of the information provided to a prospective
buyer. The value of the assets and cash flow generated by the business must be
provable and verifiable. Tait & Associates will be able to assist the business
owner in arriving at these values.
The third most important factor that effects the sales price of a business is
whether there is competition among prospective buyers for the business.
Competition creates higher selling prices, as we all know from basic economic
principles. When a business owner asks for more than the fair market value for
their business or does not offer reasonable terms, there will be few, if any, buyers
interested in acquiring the business. On the other hand, when a business is
priced realistically and with proper terms, multiple buyers are likely to pursue
acquiring the business. A buyer who knows he has other buyers competing for
the business will be motivated to offer the price being asked to ensure he does not
lose the business to another buyer's better offer.
Several factors come into play and can affect the sales price. One of the most
critical is the “terms” or the amount of down payment and the amount financed.
Over eighty percent of all businesses sold above $100,000 are sold with one-third
or less down and the owner financing the balance. Asking for one-half down will
reduce the price by approximately twenty percent. Asking for cash will reduce the
price to about forty to sixty percent of the amount attainable with one-third down.
Down payment or the “terms” is a key factor, because a buyer is trying to buy as
much business as possible for the money available for down payment. So, when a
seller asks for $200,000 down on a $400,000 value business, buyers prefer to
continue looking until a $600,000 value business is found where the owner will
accept $200,000 down and finance the balance. The seller who asks for all cash
or a large down payment is not going to succeed in obtaining the full fair market
value of their business, because buyers know they can buy three times as much
business for the same investment. In a nutshell, high percentage down payments
cause buyers to discount offers.
A second critical factor is the quality of the information provided to a prospective
buyer. The value of the assets and cash flow generated by the business must be
provable and verifiable. Tait & Associates will be able to assist the business
owner in arriving at these values.
The third most important factor that effects the sales price of a business is
whether there is competition among prospective buyers for the business.
Competition creates higher selling prices, as we all know from basic economic
principles. When a business owner asks for more than the fair market value for
their business or does not offer reasonable terms, there will be few, if any, buyers
interested in acquiring the business. On the other hand, when a business is
priced realistically and with proper terms, multiple buyers are likely to pursue
acquiring the business. A buyer who knows he has other buyers competing for
the business will be motivated to offer the price being asked to ensure he does not
lose the business to another buyer's better offer.
How will my business be advertised?
The advertising of each business will depend upon the size and type of
business. Tait & Associates uses several media to solicit prospective buyers,
including local and national newspapers, the Wall Street Journal, trade
publications and the Internet. In addition, qualified buyers from other affiliate
offices comprising more than 1,000 individuals, corporate acquirers and
investment groups will see your listing. Local newspapers are used as little as
possible, because it is often more difficult to protect confidentiality when a
business is advertised locally. Tait & Associates also uses other top business
listing sites on the Internet.
The advertising of each business will depend upon the size and type of
business. Tait & Associates uses several media to solicit prospective buyers,
including local and national newspapers, the Wall Street Journal, trade
publications and the Internet. In addition, qualified buyers from other affiliate
offices comprising more than 1,000 individuals, corporate acquirers and
investment groups will see your listing. Local newspapers are used as little as
possible, because it is often more difficult to protect confidentiality when a
business is advertised locally. Tait & Associates also uses other top business
listing sites on the Internet.
What do I need to do to help sell my business?
The first thing you need to do is offer the business at a realistic price and with
reasonable terms. You need to provide as much information as is possible so a
professional marketing package, including a business profile, can be prepared on
your company. The quality of the business profile will greatly enhance the
“saleability” of a business. A package prepared by Tait & Associates will contain
financial, operational and historical information about the business. Informed
buyers make better offers. Other things a seller can do are:
1. Continue to run your business in a normal manner.
2. Keep the business clean and organized (on paper and in person), so potential
buyers will like what they see.
3. Liquidate or set aside obsolete inventory and unneeded equipment before you
place the business on the market.
4. Notify Tait & Associates of any material changes in your business.
5. Forward monthly financial statements to Tait & Associates as soon as they are
completed. This will keep your marketing package current.
6. Do not meet with potential buyers without your broker being present.
7. Avoid direct negotiations.
8. All offers and counter-offers should be in writing and should be presented by
the broker.
The first thing you need to do is offer the business at a realistic price and with
reasonable terms. You need to provide as much information as is possible so a
professional marketing package, including a business profile, can be prepared on
your company. The quality of the business profile will greatly enhance the
“saleability” of a business. A package prepared by Tait & Associates will contain
financial, operational and historical information about the business. Informed
buyers make better offers. Other things a seller can do are:
1. Continue to run your business in a normal manner.
2. Keep the business clean and organized (on paper and in person), so potential
buyers will like what they see.
3. Liquidate or set aside obsolete inventory and unneeded equipment before you
place the business on the market.
4. Notify Tait & Associates of any material changes in your business.
5. Forward monthly financial statements to Tait & Associates as soon as they are
completed. This will keep your marketing package current.
6. Do not meet with potential buyers without your broker being present.
7. Avoid direct negotiations.
8. All offers and counter-offers should be in writing and should be presented by
the broker.
What is the process for selling my business?
Because Tait & Associates does not have the intimate understanding of the
business and its operations, and certainly not the level of knowledge the owner
has, we must therefore work as a team. Tait & Associates initial job is to get a
business listed at the best possible obtainable price and with realistic terms of
sale. The next step is to qualify buyers to keep the seller from wasting time with
people who are not financially qualified. Qualified buyers will be presented your
business profile after they have completed a Buyer Warranty and Confidentiality
Agreement that protects the confidentiality of the seller regarding the potential
transfer. Tait & Associates will then schedule a meeting between the business
owner and the interested buyer. During this meeting, the business owner will
explain the business to the buyer. After this meeting, Tait & Associates will work
to get a written offer to purchase. Tait & Associates will present all offers and
after acceptance will coordinate the due diligence process that will lead to the
closing.
Because Tait & Associates does not have the intimate understanding of the
business and its operations, and certainly not the level of knowledge the owner
has, we must therefore work as a team. Tait & Associates initial job is to get a
business listed at the best possible obtainable price and with realistic terms of
sale. The next step is to qualify buyers to keep the seller from wasting time with
people who are not financially qualified. Qualified buyers will be presented your
business profile after they have completed a Buyer Warranty and Confidentiality
Agreement that protects the confidentiality of the seller regarding the potential
transfer. Tait & Associates will then schedule a meeting between the business
owner and the interested buyer. During this meeting, the business owner will
explain the business to the buyer. After this meeting, Tait & Associates will work
to get a written offer to purchase. Tait & Associates will present all offers and
after acceptance will coordinate the due diligence process that will lead to the
closing.
Do you have other questions about buying or selling a
business?
Contact the Tait & Associates office at (310) 372-4772 for answers to your
questions or you may send an e-mail to our corporate headquarters by selecting
the "Contact Us" link.
business?
Contact the Tait & Associates office at (310) 372-4772 for answers to your
questions or you may send an e-mail to our corporate headquarters by selecting
the "Contact Us" link.
| Benefits Why a Broker Selling Price Marketing What You Need The Process Questions |
Certifications: Business Transfer Specialist (BTS) Financial Recasting Consultant (FRC) |
| Members: California Association Of Business Brokers |
| Services | Privacy Policy | Disclaimer | Site Map | Forms | Home | Contact Us Tait & Associates 2118 Pullman Lane, Suite B, Redondo Beach, CA 90278-4914 Phone (310) 372-4772 Fax (310) 372-6533 http://www.taitassociates.com |
| Members: California Association Of Realtors |