Selling a Business

We often find that there are low-cost opportunities for improvement in any business which, if implemented, can create significantly more value for your business. We will advise you on the things you can do for your business that will provide such additional value.

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.

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.

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.

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.

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.

Many times a business fits strategically well within another company or group of companies. We 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.

Here is where we put all of our resources to work. Berkowitz Acquisitions has 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 nationally and internationally, if necessary. Our skills in writing non-confidential business summaries are unsurpassed. Such summaries, if written well, deliver the best buyers from the marketplace.

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 prospective buyers have completed a rigorous background check and have submitted a signed Non-Disclosure and Confidentiality Agreement. Your time will only be spent with Buyers who have the desire and means to purchase your specific business.

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.

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 is only one of our many professional techniques to elicit the best price for your business.

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. For example, the purchase and sale can be fashioned to provide the best tax consequences for both the Buyer and Seller. We will work with your lawyer and accountant to help you not only derive the best price for your business but the most advantaged terms.

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 Buyer's review. We will also act as the conduit between Buyer and Seller, thus saving you time.

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

Once the business is officially transferred to the new owner, we are available to help with the transition process. There will be many things to do, including conducting employee meetings, transfering files, updating computers, participating in transitional training by the Seller, and managing a series housekeeping tasks typical of such transitions. We will be there to help.