Our refined and time-tested selling process to successfully selling businesses has five distinct phases. During each phase, we’ll guide you through the details, strategic thinking, critical decisions and provide professional insights to ensure that you’re completely comfortable.
1. Complete understanding: Meeting between seller and Broker; the Broker learns the pertinent information about the business and the Seller learns about the BC Business Brokers transaction process.
2. Thorough review: Sunbelt wants to thoroughly understand the seller and the business; reasons and goal for selling, plans after selling and anticipated plan of proceeds from sale. These areas of discussion impact how we undertake the selling process and terms of the sale.
3. Letter of Direction: This is a limited engagement between BC Business Brokers and the seller to prepare a most probable selling price.
4. Detailed Business Analysis: Unlike other professionals that just use historical financials to determine the value of a business, BC Business Brokers’ considerations are first the industry, then the geographical location and then the financials. To adequately determine these considerations, we gather data such as financial statements, operational details, inventory, furniture and assets, market conditions, company history, facility details, leases, staff, proprietary technologies, and processes to name just a few.
5. Financial Recasting: This involves ‘normalizing’ the financials to represent what a neutral company would be managed if it were not for taxes and personal benefits.
6. IBBA Accredited Process: Our Most Probable Selling Price (MPSP) is based on an evaluation of several widely used industry approaches to business valuation recommended by the International Business Brokers Association (IBBA). This also complies with the Uniform Standards of Professional Appraisal Practice as set out by the Appraisal Foundation, a global authority in appraisal practice.
7. MPSP: Once all of the information has been collected , analyzed and researched against similar businesses, comparable purchase options and industry standards, BC Business Brokers presents you with a comprehensive report that forms our professional ‘brokers opinion’ of what your business may sell for in the current marketplace.
8. Decision Time: Once the MPSP report is complete and you have had time to review and consult on the report, a decision is made whether the company or the seller is comfortable enough to proceed with the process of selling the business.
1. Engagement Agreement: Once a decision has been made by the seller to sell the business, BC Business Brokers will enter into an Engagement Agreement with the seller which engages the two parties into a contractual obligation to proceed with the development of marketing for the business.
2. Marketing Tools Development: BC Business Brokers uses two primary documents as the basis to begin marketing the business through a wide range of media and marketing opportunities; the most valuable is often the database of qualified buyers looking for the right business opportunity.
3. Blind Profile (BP): This is a one or two page advertising overview of your business that provides just enough information to generate general interest. The Blind Profile is used to screen prospective buyers and for the buyers to screen what interests them. This document does not identify any specific characteristics of the business which still remains confidential.
4. Confidential Business Profile: The Confidential Business Profile (CBP) is a business prospectus designed to provide prospective buyers with a detailed overview of the business. This substantial business presentation summarizes all the key aspects and provides enough information to seriously consider making an offer. It is only made available to qualified prospective buyers who have been pre-screened. Prospective buyers must also have signed a strict and detailed, legally enforceable, non-disclosure agreement prior to viewing your Confidential Business Profile.
1. Marketing Campaign: BC Business Brokers uses a multitude of approaches to market your business. These include radio, newspaper, internet, internal buyer lists, network contracts, targeted searches and solicitations, as well as online advertising on our web site, our nationally affiliated global website, plus numerous other top-rated business related websites.
2. Buyer Screening: All responses and requests for information are filtered, screened and qualified in order to select only truly legitimate buyer prospects. Once we are confident of the viability of a potential buyer, we meet personally with that buyer to do further due diligence. This may include verifying financial statements, confirming credit worthiness, net worth and liquid assets, often with third party references. BC Business Brokers also undertakes personal, lifestyle and business capabilities interviewing to confirm that the prospectus buyer is suitable to your business and able to run it successfully.
1. Managing Buyer Expectations: Managing the expectations of a prospective buyer throughout the negotiation process may be the most difficult and critical part of what we do. It is also very important that all negotiations be handled exclusively by your BC Business Brokers intermediary in order to ensure the greatest likelihood of success in the selling process.
2. Negotiations: In most cases, especially when vendor training or financing is involved, an ongoing relationship between the buyer and seller is required. This makes maintaining a positive relationship and a win-win outcome one of our paramount objectives.
3. Proceeds of Sale: Once an offer is received, we do a financial analysis of the terms and conditions as presented which becomes the basis for preparing and evaluating counter offers. Small changes in terms, rates and other considerations can often make a significant difference in the outcome and viability of an offer.
4. Due Diligence: Another critical role of your BC Business Brokers intermediary is to manage the due diligence process with the lawyers, accountants, financial and business advisors. This monitoring and coaching that we undertake on your behalf is pivotal to a successful outcome. It is at this stage that the very best of potential deals can go wrong if not handled with proven processes and seasoned expertise. We provide both buyer and seller with a checklist of what they should be aware of during this stage.
1. Closing: This is the final stage of the process. Your BC Business Brokers representative will again manage all aspects to expedite this potentially delay-prone process. We’ll keep the lawyers and accountants synchronized on both sides to ensure a timely and successful conclusion. Again, BC Business Brokers provides a checklist to both buyer and seller to ensure they are aware of all the details that ensures a successful transaction and a smooth transfer of the business.