Find A Sacramento Business Broker

Checklist for Finding the best Sacramento Business Broker

You’ve established and built a successful company and experienced financial success. Now that it’s time to sell your business, you want to get the best selling price for it. It is important to get the best price, but it’s also important to get the best terms and to make sure the transaction closes.  That’s why it’s critical to find the right Sacramento business broker.

A business broker’s job is pretty much the same as that of a real estate broker’s job in selling real estate. Like selling real estate, there is a process to go through and lots of preparation prior to selling your business. If you have spent time and efforts in building a profitable business, you should do the same before letting it go. Having a professional Sacramento business broker on your team can make all the difference in the world and is worth every penny at the end. Westwood Benson Business Brokers has an established track record of success helping company owners sell their company.

A top business broker can sell a company for a higher price and more effectively than what a business owner can generate on their own. There is a series of standard procedures that a professional business broker executes – from evaluating the business for sale, knowing the market trends and connecting and finding the right business buyers.

When looking a business broker, it’s critical to get to learn about the person and the company. Before setting up an appointment to discuss a business for sale, you should prepare a checklist of interview questions in order to confirm the expertise of the broker.

Business Broker Checklist

Interview Checklist

Below are a few questions that can help you, as the business seller, evaluate prospective brokers:

  • How long have they been working as a business broker?  (A long record of experience in selling business is definitely a plus factor)
  • How many successful closing deals has the business broker made in the last couple of years and in what particular industry?  (It is good to know the business broker’s track record in closing business sales)
  • Are the business broker’s clients happy with their transactions? (Ask for testimonials if possible)
  • How do they find business buyers and qualify them?

A meeting to discuss selling a business will not be complete without questions that will be asked by the business broker.  At this point, the business seller can gauge a the business broker’s capability and experience in selling businesses.  Below are samples of critical questions from business brokers that are not only helpful in determining a good business broker, but also aid in determining what business buyers are looking for.

  • Is your company brand popular?
  • How many employees do you have?
  • How many loyal customers do you have?
  • Do you have multiple income streams?
  • Is your business finance record updated?

The answers to the questions above work both ways for both seller and buyer but leading to only one goal – finding the right Sacramento business broker to help successfully sell the company for a price that will satisfy the company owner.

Checklist: Westwood Benson Sacramento Business Broker

Determining Business Valuation

What Would Your Business Sell For?

Determining Your Business Valuation

Going through a process of business valuation is a requirement for business brokers, sellers and buyers to determine the business worth. The key is to do things right from the very start and this means giving the idea of selling or buying a business a lot of thought and preparation with well-calculated assumptions designed to achieve positive results. Westwood-Benson, a Sacramento business broker, is known for its expertise in maximizing business valuation and shares the following guidance to business sellers.

Determining Business Valuation

Business Valuation

Every business is unique and there are no rules carved in stone to determine a business’ worth. Some business sellers may assume that their business value depends entirely on strong business connections established through dedicated service to the customers they serve. Other business owner’s may look back into their history and track record of high business income.

For business buyers, gauging a business worth is in part understanding the general economic trend and conditions that affects the competitive selling prices. How a business is being offered for sale also affects business valuation. A business buyer would think twice when presented with a fast sale in an auction situation verses a business offered for sale that is professionally presented with thorough and detailed offering memorandum designed to highlight the business strengths and the opportunities available to the would be buyer.

Simply put, the expected or assumed business selling price is what a business is worth. A well-thought of business selling plan by a professional Sacramento business broker includes at least one of three basic methods in determining a business worth.

First method is looking into an overview of the assets and liabilities of the business in question and comparing it to a scenario of starting the same business from scratch. How much will it cost to start a new business of the same nature that can yield the same benefits as that of an established business for sale.  The end result, which is the difference of this comparison, is the business intangible value.

The second method is reviewing the actual market place. Looking into the business comparable market value with businesses with the same products or services helps both business sellers and business buyers determine competitive selling prices and eventually satisfy their respective interests.

The third method is more popular with business buyers. It is looking into the history of the generated business income and applying the “what if” scenario. Here the practical reason for owning a profitable business is no doubt the end goal. Relative to this approach is taking risks as to what future benefits may be garnered. An experienced business broker uses two ways in using this method – capitalization and discounting.

The formula in capitalization is dividing the business’assumed earnings by capitalization rate. Assuming that the capitalization rate is twenty five percent, the business value is most likely four times the earnings per annum.

Discounting is done by projecting the generated income of the business over a defined time frame or holding period, and then determining the appropriate discount rate given the risks of getting the projected income over the specified period of time. The terminal value or final residual value (selling price) is then determined and the annual cash flows are discounted back to a final present value.

Both approaches serve their purpose for business valuation. The difference in what income input to use. Whereas, capitalization utilizes one income measure, likethe average earnings over a period of time, the discounting approach uses multiple income values over the years. Capitalization method is a good measure for businesses with a smooth sailing income yearly while discounting is best applied for businesses with variable income generation.

Sacramento-business-broker

Do the right things.

Measuring a business’ worth using the income valuation yields different end results and is highly recommended by expert Sacramento business broker, Westwood-Benson, as the best method in determining a business worth. No two businesses are the same and the valuation method utilized should be chosen based on the attributes of each individual business.

If you are considering selling your business, contact Westwood-Benson Sacramento Business Brokers for a free consultation.

9700 Village Center Dr, Suite 50-N
Granite Bay, CA 95746
Phone: (916) 788-1939

Sacramento-Business-Broker-Valuation

Valuing a Business for Sale by a Sacramento Business Broker

Sacramento-Business-Broker-Valuation

 

 

 

 

 

 

 

 

Sacramento Business Broker Business Valuation Method

Business valuation is a method used by a Sacramento business broker with established procedures used in estimating the owner’s interest in business in terms of economic value. Financial market partakers determine the amount they are inclined to receive or pay to consummate a business sale with the use of valuation. Other than valuing the selling price of any business, Sacramento business brokers and business appraisers use the valuation tools to settle disputes akin to allocation of business purchase price among business assets, divorce process, estate and gift taxation, establishing  a method for approximating the value of partners’ proprietorship gain for buy and sell settlements, and for various legal and business purposes.

The valuation task done by a Sacramento business broker must identify the intention for and the statuses encompassing the business valuation before the value of a business can be assessed. In business language, these are known as premise of value and the business value standard. Premise of value correlates to the suppositions, such as supposing that values of the businesses remain in the profits from the sale of total assets less the linked debt or that the business continues infinitely in its current form. The standard of value is the speculative conditions upon which the particular business will be valued.

Results of business valuation may vary depending on the option of both the premise and standard of value. It is expected that in an actual business sale, the seller and buyer, each with an inducement to attain an optimal upshot, would establish the fair market value of an asset that will contend in the market pertaining to such an acquisition. Such estimates may not be taken into consideration if the interactions are unambiguous to the business being valued.

Fair value does not integrate markdowns for lack of marketability or control. In all probability, fair market value can be achieved for a business asset that is being discharged in its secondary market. This accentuates the difference between premise and standard of value. These postulations may not reveal the actual market conditions wherein the subject business may be sold. Nevertheless, these circumstances are implicit because they generate a constant standard of value, after the application of commonly accepted valuation techniques that allows significant comparison between industries that are comparably situated.

A business valuation statement made by a Sacramento business broker commences with an account of local, regional, and national economic situations existing during the valuation date, and the settings of the industry wherein the business subject operates. The usual sources of economic statistics for the initial segment of a business valuation statement prepared by a Sacramento business broker are books published by industry associations and state governments containing useful statistics with descriptions of industry and regional conditions.

Buying and Selling a Business with a Sacramento Business Broker

Sacramento Business Broker Buying

The rules of Buying and Selling with a Sacramento Business Broker


Buy and Sell Sacramento Business Broker Report Reviews Buying and Selling a Business.

If you ever come across a business for sale by a retiree, grab the deal. It may be one, if not the best deal you will get. Buying a business when it is still sustainable is the most opportune time. Retirees could be the best sellers because you will know that their reason for selling is not related to business problems. The Sacramento business broker will tell you they tend not to change minds about selling. Elders may offer flexible terms that is most favorable for ease of payment on your part. The downside, however, is the emotional and physical disengagement. Since they have been treating their business like nurturing a child, it is not easy to disembark. You need to bear with them in case they blurt out some sort of quirks before finally agreeing to close the deal. Business success may have been dependent on the relationships with dedicated customers. You come to think about how to keep the old customers when the owner has gone.

Any Sacramento Business Broker will tell you getting a done deal is far from easy. Most of the time, negotiations are difficult to manage and the process is even more tough. In order for a deal to go smooth sailing, both parties must agree to set terms and conditions. You can only rest easy when you see the numbers at closing time. Selling your business is a lot more challenging than you could imagine. You will meet many prospective buyers, most of whom are not qualified, before you can finally meet the right buyer.  Your Sacramento business broker will help you find the right buyer.

Every business for sale has some kind of problem. As you go about your due diligence, be very observant of all things and people surrounding the business environment. Do not fool yourself by rationalizing that the problem, how small it may seem, will never affect your decision. If you are really bent on buying the business despite obvious problems, talk to the seller and demand an explanation. And if you are good enough to dismiss it as minor stuff, then by all means, live with it.
The closing stage of any deal is the most crucial part of it all. Many deals never come to a fair deal at culmination day. Sellers often change their minds at the last hour. It can really be frustrating if you have spent hours, days and months of grueling negotiations, due diligence, raising the money and plenty of hard work, only to be turned down at the end. Bottom-line; always be prepared with this kind of situation. Do not let emotions ruin your day.

The moment the Sacramento Business broker has the buyer and seller sign the deed of sale, the subsequent step is to finish off the complete details such as the final terms of payment, legal documents to be accomplished by vendor, employees and  customers to be given notice, inventory control and more. At this point all negotiations must end. Any additional talks will only rock the boat, so to speak. The contract is the legal document that contains all stipulations on the deal’s terms and conditions. Any additional negotiation may only ruin the deal. Do not sign the deed if you still have some issues that need clarification. You can always consult the help of a professional Sacramento business broker to do all the sensitive parts of a sale transaction.

After the successful purchase, do not alter any existing set up. Make yourself content by just observing the regular operations for a couple of days or so. This way you will be able to see how the seller managed the employees and how customers are dealt with. If you make some drastic alterations in the early onset of ownership, you may unknowingly offend key people who have grown with the company and who may be the same people you will be depending on to help you succeed in your new business. Call Wb-businessbrokers to learn about the Sacramento Business Broker when you decide to sell or buy a business!

Sacramento Business Broker Could Be Your Next Best Friend

A Sacramento business broker could be your next best friend if you would just give him a chance. If you are planning to sell your business but do not have an inkling on how to go about the sales process, contact a reliable business broker to help you out. Selling a business could be a daunting task. It is not as simple as signing a piece of paper, cash in your money and goodbye business. A business sale process is an extremely structured system that must be followed religiously, if you want to make a quick sale.

So before putting your business up in the market for sale, call a Sacramento business broker and start learning the art of selling a business. You have to choose a broker that you can trust. Keep in mind that not all business brokers are trustworthy. You may end up with the wrong broker who neglects your business shelved in some archived gathering dust. Choose a business broker that can increase your selling power with his proven skills and record of accomplishments.

Find a business broker based on traits. There are hundreds of business brokers out there but the good ones share some distinguishable traits:

Specialized Experience: He must be specializing in the category of business sales that is related to your line of business.

Find a Sacramento business broker that sells businesses in your area based on geographic market and within your budget range.

A Verified Track Record:  As your prospective broker for his credentials and record of accomplishments. If you are given a list of previous clients, call and verify to follow up on the most recent entries. Ak about his personal attributes and selling style. Also ask leading questions as to your prospective broker’s strengths and weaknesses. Take a moment to analyze the personal information and think about how his attributes and style will fit into your own personal style.

Connections: A boastful business broker who brags about having the capability to take your listing from start to closing is waving a big red flag. Politely decline and say goodbye.

Ask about his business connections. An experienced Sacramento business broker should have a network of business professionals that may be able to help in the course of the business sales process. This should at least comprise a group with local professionals, accountants, and lawyers that he may be able to call, in case you request to be introduced for future assistance. Should you decide to employ your own legal counsel and accountant, your business broker’s circle of professional friends may come as a big help.

Truthfulness: When selling a business, the price and terms are the most common blockades in consummating a good deal. Your Sacramento business broker should be able to advise you on matters regarding adding value to your business and the selling price valuation. If a Broker cannot tell you honestly how much your business is worth, you might just as well end up selling your business by yourself. Do not fall for flattery. Remember that all brokers tend to raise any selling price basically because they get their income from the commissions on the sale. Greg Roberti of Westwood Benson Business Brokers is one of the top performing Sacramento Business Brokers.

Contact Greg Roberti at Westwood Benson Business Brokers for a no-cost appraisal at: 916-788-1939.

Sacramento Business Broker


Sacramento Business Broker

Sacramento Business Broker

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Sacramento Business Broker Press Release