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Most frequently asked questions from prospective sellers:
Read below for answers to these important questions:
-Why do I need to use a business broker to help sell my business?
-What is a Certified Business Intermediary (CBI)
-Does it it cost more to hire a CBI?
-Why hire a Certified Business Intermediary (CBI)?
-How will Goodman and Company help me get the highest price for my business?
-Will Goodman and
Company conduct a financial analysis of my company?
-How does Goodman and
Company maintain my confidentiality?
-How does a business
broker help me to negotiate price and terms?
-Will a business broker
have more access to buyers?
-How does Goodman and
Company qualify buyers for my business?
-What advertising will
Goodman and Company use for my business?
-How will an asking
price be determined for my business?
Why do I need to use a business broker to help sell my business?
There are many reasons. Most importantly a business broker is a business
sales professional. While you may be an expert at running your business, what do
you really know about the ins and outs of selling a business? Do you have a long
list of prospective buyers? Do you have a strategy to get the highest price in
the market place for your business type? Are you an experienced business
negotiator? Do you know how to structure the agreements to assure yourself of
the best possible outcome? How will you protect your confidentiality? A Goodman
and Company professional business broker is trained to handle all of these
situations and more!
Selling a business is not like selling a house. When you want to sell your house, you can put it on the multiple listing service. The address
is posted so as many people as possible will know of your desire to sell and drive by
to visit your home. The information about your sale plans is freely shared with the public.
There are no secrets.
But, when you offer a business for sale, you are faced with the challenge of
creating a market for something that is highly CONFIDENTIAL. This is the most
challenging part of selling a business and what business brokers specialize in.
We are the intermediary between you and the business buying public and we protect your confidentiality while creating as strong a market as possible
for your business.
What is a Certified Business Intermediary (CBI)?
Any person can call themselves a business broker, since it isn't a state
licensed profession. However, only a few of us (approximately 5% of all business brokers) have the education, experience and the designation of Certified Business Intermediary
from the IBBA. At last count, only 10 CBIs work in the state of Massachusetts.
Peter Goodman, (Goodman and Company Business Brokers' president) is a CBI and
provides guidance to all of our agents. Certified Business Intermediary (CBI) is the designation awarded by the International Business Brokers Association (IBBA) to members who have satisfied the educational requirements and conform to the ethical standards of IBBA.
Does it cost more to hire a CBI?
Not at all. At Goodman and Company Business Brokers, we charge rates that are
competitive with all business brokers. In many cases we are even less expensive.
Our training helps us succeed more often and more quickly, which is good for
both of us.
There's no reason to charge you any more. We just want an
opportunity to serve you.
Why hire a CBI?
A CBI can help you optimize your transaction by identifying better prospects, clarifying investment potential, and helping you work with the lawyers, accountants and other professionals who will provide the necessary counsel to assure a successful transition of ownership. A CBI is an experienced, proven professional whose claim of competence is supported and documented. A CBI has the proven skills necessary to handle the marketing, negotiations and complex details involved in the purchase or sale of your business.
Goodman and Company Business Brokers feels strongly that being properly educated in the many aspects of business brokerage allows us to provide a higher level of service.
Every CBI has undergone a specialized course of detailed training, aimed at making the process of buying or selling a business as smooth and worry-free as possible. A CBI brings special qualifications to your needs:
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Membership in IBBA (the largest and most prominent business brokerage organization in the United States), an international association serving the business brokerage industry. Every CBI is part of a network of professionals.
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Successful completion of courses leading to the Certified Business Intermediary designation --
The most prestigious intermediary educational program in the country. Every CBI is a professional equipped with special expertise as a result of advanced study in selling, investment, taxes, valuation, divestitures, exit strategies, and more.
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A history of demonstrated sales performance through the documented execution of business sales transactions.
How will Goodman and Company help me get the highest
price for my business?
Goodman and Company Business Brokers is committed to helping you obtain the
highest price the market will pay for your business. Locating and negotiating
with just one prospective buyer at a time will never yield the result you need.
We create competition among our many active buyers. When buyers know there are
multiple buyers looking at the same business, they will negotiate with a sense
of urgency and pay a higher price for your business. The additional money that
an experienced broker will obtain for your business will significantly exceed
the cost of the brokerage services.
Will Goodman and Company conduct a financial analysis
of my company?
Yes, and at no cost to you. We spend a significant amount of time reviewing the
financial information from your tax returns, profit and loss statements and also
through an interview with you. We use this information to determine the real
'cash flow' of your business (we like to use the term Seller's Discretionary
Earnings). Ultimately all businesses have a value which is
based on how much money the company earns. By detailing this information clearly
to the buyer, we can justify the asking price of your business.
Your accountant's job is to reduce your tax liability and prepare your tax
returns to make you appear to be the 'least' profitable possible. We do the
exact opposite by reconstructing your financial information, (your tax returns
and your income statement and balance sheet), to show you in the MOST profitable way we can. Of
course, the information we provide must be true and not unfairly mislead the buyer, but
demonstrating the TRUE profit your business makes benefits you and your buyer
alike.
How will Goodman and Company protect my
confidentiality?
Confidentiality is extremely important when selling a business. As a
business owner trying to sell your company, you should be reluctant to expose
your business information to ‘strangers’. At Goodman and Company we screen
all potential buyers and have buyers sign confidentiality agreements before we
reveal anything about your business. We'll only reveal your company name and
location to the most 'serious' buyers that we feel have the ability and desire
to buy your business. Maintaining the confidentiality of the sale benefits the
seller and buyer alike.
Our goal is to have your employees, customers and suppliers find about your
business sale AFTER the closing. We go through great lengths to protect your
confidentiality.
How does a business broker help me to negotiate price
and terms?
Using an intermediary/broker to negotiate price and terms ALWAYS results in a
more favorable outcome for the seller. When buyers negotiate with you in person
they can look you in the eye and see your reactions to their statements, extract
'free information' from you and study your body language to make a better deal
for themselves. Buyers can pester and annoy you and interfere with your
business when their access is not restricted by a business broker. A
broker/intermediary is ALWAYS beneficial to a seller during negotiations for
your business.
Our pledge is to get the best price and the best terms possible when selling
your business. We represent YOU in every way. We have a good sense for what
buyers are willing to pay and how to get it so that you receive a fair offer for
your business. If you aren’t experienced at this how will you negotiate a deal
on your own and expect to be happy with the result?
Will a business broker have more access to buyers?
Goodman and Company maintains a database of over 2000 potential buyers from the
local area bringing you
the maximum exposure for your business. Its all about the numbers! The more
buyers that we can simultaneously attract to your business, the higher the price
you can expect to receive.
Does Goodman and Company qualify buyers?
Once we have interested buyers it is important to qualify them. In other words,
we need to find out if they have the intent, the experience, and most
importantly, the money to make a deal. We make sure that they have the ability
to complete a deal before we waste any of your time. In certain circumstances
we will run a credit check on the buyer to make sure he has the
creditworthiness to do business with you.
When we first make contact with a new buyer about your business, we'll get
information from them about their financial resources. Of course, we only want to share information about your business to buyers that have the financial ability to
complete a transaction.
What advertising will Goodman and Company use for my
business?
We advertise your business (anonymously, of course, to maintain your
confidentiality) on multiple online business-for-sale websites, at no cost to
you. Your business-for-sale listing will be seen by hundreds of prospective
buyers, all in complete confidence.
We also send email marketing campaigns to our very large database of local area
buyers. These emails describe our businesses for sale and attract immediate
interest from the buying public.
We know what buyers are looking for and we
market your business accordingly. The key is to get your business exposed to as
many potential buyers as possible at once.
How will an asking price be determined for my
business?
You may have your own opinion of the value of your business, and we will advise
you based on what we think using our financial analysis and our knowledge of the
market for your type of business. By working together with us, YOU will
decide on a price that will get the most for your business. Your
profitability, competition, the overall market for your business type and your
desired time frame to complete a sale will guide you to make this very important
decision.
Still have more questions? Please contact us. We are happy to discuss all of
your concerns.
Phone: 508-395-1988 or 617-444-9655
Fax: 978-440-8985
Email: peterg@goodmanonline.com
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