Business Brokerage Solutions

Business Brokerage Services


Confidentiality is our primary concern whether you are Selling a Business or Buying a Business.

Business Valuations

Valuations Explained

From Investopedia:

“[A business valuation is] The process of determining the economic value of a business or company. Business valuation can be used to determine the fair value of a business for a variety of reasons, including sale value, establishing partner ownership and divorce proceedings. Often times, owners will turn to professional business valuators for an objective estimate of the business value.”

Business valuations (and appraisals) are rendered by certified and accredited professionals, affiliated with one or more nationally-recognized associations.

What Determines Value?

While there are many areas that a business appraiser will evaluate, cash flow and risk are two important factors in appraising a business.

A buyer typically purchases a business for future income. Cash flow can be expressed many ways, typically either as Free Cash Flow, EBIT, EBITDA or Seller’s Discretionary Earnings (SDE). In small business transactions, SDE or EBITDA is the most common basis for establishing a selling price.

Bottom line, the more cash flow there is, the more a buyer will be likely to pay.

All cash flow comes with a degree of risk. Risk may be present in customer concentration, reliance on vendor relationships, macro economic trends, competitive forces, key employees, legal exposures and more. A formal business valuation will include an analysis of the company’s risk and quantify that risk into a percentage known as a Discount Rate or Capitalization Rate.

What About Goodwill?

Goodwill is not a random figure – it is calculated by subtracting the tangible value (fixed assets) from the final value. The residual is considered goodwill or intangible value, and it’s either there or it’s not. Business sellers often over estimate the value of goodwill, assuming that things such as technology and an established brand adds “goodwill” value that should be figured into the asking price – it doesn’t, unless those items improve cash flow.

Seller Representation

The Process of Selling:

- Analyze & Prepare The Business

We understand what buyers want to see in a business and we work with you to get your business in position to be sold for the best price and in the shortest time frame.

- Generate Value Estimates & Deal Structures

The right deal is different for everybody and every business. In conjunction with delivering our professional opinion of value, we can present different deal structures for you and your financial advisors to consider.

- Develop Your Marketing Plan

Our team will create compelling Confidential Business Profiles, Confidential Business Reviews and additional collateral designed to stimulate the interest of buyers.

 - Launch Your Confidential Internet Promotion

For certain businesses, an internet marketing/promotions/strategy is a must, while others require direct contact with potential buyers. We will work with you to identify potential strategic buyers for direct confidential contact.

- Respond To & Screen Buyers

We will follow up with, and screen potential buyers and narrow it down to those who appear to be serious and have the financial capacity to perform.

- Manage Buyers and Evaluate Offers

Working with your professional advisors, we’ll help you evaluate the pros and cons of each offer.

- Expedite Due Diligence

Upon acceptance of an offer, we will assist with the due diligence process. We’ll work with accountants, attorneys, and lenders to keep the process focused and efficient.

Buyer Representation

The Process of Buying:

- Connect buyers with the right opportunities

The right deal is different for everybody. We work with buyers to gain an understanding of their background, company interest, and target sector. From there we search business for sale that will be the correct fit for the buyer.

- Continue the business search

Good businesses priced right sell fast. Our team will monitor business listings for new opportunities and contact unlisted businesses that are in the target sector as determined by the buyer.

- Respond To & Screen Sellers

We will screen potential opportunities to help ensure they are in the buyers target sector and market.

- Facilitate the buying process

Working with your professional advisors and assist with the due diligence process.

Transaction Broker

This aspect of limited representation allows a licensee to facilitate a transaction by assisting both the buyer and the seller, but a licensee will not work to represent one party to the detriment of the other party when acting as a transaction broker to both parties.

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