Portland, OR Business Broker Could Be Your Next Best Friend

A Portland 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 Portland 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 Portland, Oregon business broker that sells businesses in Oregon and Washington geographic markets.

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. Ask 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 Portland 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 Portland 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 Portland Business Brokers.

Contact Greg Roberti at Westwood Benson, Phone: 800-761-8460.

Determining Business Valuation

What Would Your Business Sell For?

Determining Your Business Value

Going through a process of business valuation is a requirement for a 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 Portland OR Business Appraiser, is known for its expertise in preparing business appraisals and valuations. Westwood-Benson shares the following guidance to business sellers.

Determining Business Valuation

Business Value

Every business is unique and there are no rules carved in stone to determine a business’ value. 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 value 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 a 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 out business marketing plan by a professional Portland, Oregon business broker will greatly help in achieving a maximum business value.

First valuation method is looking at 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 actual market place sales. Looking at 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 annual earnings.

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, like the 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 Portland Oregon business appraiser, 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 Portland Business Appraisers for a free consultation.

Westwood-Benson, business appraisers and business brokers.  Phone: (800) 761-8460

Portland Oregon-Business-Appraiser

Selling Your Portland, Oregon Business

There are several reasons why a business owner decides to sell his business. Selling a business is not the easiest decision to make for a business proprietor who had built his business out of blood, sweat and tears, so to speak.  Needless to say, It is not easy to just turnover the intricate process of selling the business to a business broker (though this is the most recommended move) if the seller has no idea at all of how to go about the process.

Avoid the unexpected. When deciding when to sell, do your homework and carefully plan your selling strategy. Anything may go wrong or completely head towards the opposite direction of your end goal in selling the business. Even if you have decided to sell with the help of a professional business broker, preparation is the key to a successful business sale. Treat the process of selling, as would a good business broker do, with utmost care like what you did in building and developing your business. After all, who, in his right mind, would buy a business that is haphazardly offered with only the urgency of the business seller to dispose of the business at stake?

Remember to put into consideration both internal and external factors in the crucial moment of decision making. Before deciding to sell, part of the internal preparation is to dig into your books and do the balance sheets for at least the last few years of operations. Allot some time in updating your financial records. Relatively, put some weight in the external factor, i.e. prevailing economic condition that affects stability of continuing operations. Not all considerations on circumstances may align perfectly but still you are now prepared to hurdle any obstacle.

When fully decided and cleared of any backroom hinges, think of the people who may be or may have been a part of your team, i.e. silent partners, friends or family who, at one time or another, may be stakeholders in the business you are selling. Even how small their shares are, they are still legally entitled to have a piece of the cake, (do not laugh, but prepare to let go of the icing tooJ)

Determine your business value or worth as this will also be the basis for setting your asking price. Know the market and sell at the right time. Until such time, that you have a well prepared plan, never discuss your selling-out moves to employees and other beneficiaries of the business. You will never know their reactionary moves (just assume the “negative worse”) that may thwart or block your goals.

After business valuation and determining the selling price, researching for similar businesses that are up for sale in the market would be an inspiring move regardless of size or price. Now, that you are done with due diligence, it is now time to find buyers for your business. Initially, you may want to sell the business to your employees because among all other prospects, your employees know your business well and are more than capable of running it. In a gist, employees are extremely motivated and would be top candidates to ensure the business will move forward when incentivized with power to own the business.

Have your legal adviser set up a payment scheme wherein the employee buyers could purchase and pay in easy installment plan with support of your financing or outside resources. In 1978, the Employee Stock Ownership Plans or ESOPs was established and required by law as part of the benefit plan for employee retirement. The ESOP is equivalent to the “profit-sharing plan” where companies benefit for the purpose of continuing business, incentivizing and enhancing motivation among its employees.

Your next best prospect is your business competitor. You would not expect this recommendation but it is a win-win scenario – you are getting your business worth and peace of mind knowing your business is in good hands, while competitor-buyer is more than happy to have one less competition in the block.

Contact: Westwood-Benson at 800-761-8460, www.westwoodbenson.com

When To Sell Your Business

There are a number of reasons why a business owner would want to sell the business. Some may be facing lawsuits, a looming divorce, an expiring lease contract and other obstacles that may impede business development. A business broker can lay out the groundwork for any business owner that may be faced with a dilemma on selling the business or not.

A lot of considerations before selling the business are at stake that must be put in a proper exit plan. It is good to project the right time to sell but it is better to know when the “good time” or “bad time” is with the following guidelines:

It is a good time to sell when:

  • The exit plan is well-thought of
  • Everybody is buying
  • You cease to enjoy doing business
  • Looking forward to a well-funded retirement plan
  • Receiving an unexpected offer
  • Foreseeing a more productive lifestyle after selling the business
  • Your business is in the upward scale
  • Your successors are able and ready to take over the business when you retire

It is a bad time to sell when:

  • There is an economic plunge
  • You are threatened by an upcoming competitor
  • Faced with serious health conditions
  • Facing serious disputes or lawsuits
  • Your products or services are in a downward trend
  • Your managing partners are not performing well
  • A business problem impedes a sale
  • Lease contracts are expiring

Careful preparation and meticulous planning should be your foremost concern before selling out. It is necessary to consult an experienced business broker to help get your business in tip-top shape as far as operations and physical attributes are concerned. The selling process begins with preparation starting with proper documentation of financial statements and other important data. The following are a few pointers to start with:

Review your expiring lease contracts particularly the stipulations in the terms, options, rentals and assignments. Correct any errors or add any provision that may have been missed.

  • Check your inventory: Are your products obsolete or overstocked?
  • Get a breakdown of your receivables
  • Check status of payables.
  • Are deliveries of goods updated?
  • Do you maintain good customers that are happy over goodwill prices?
  • Check for marketplace trends.
  • Are your business permits and licenses updated?
  • Prepare the tax returns from the last three year of business operations.
  • Make certain that all insurance policies are active.
  • Prepare audited financial data from the first day of operations to the current year.

If you do not have time to clean up all facets of the business, then it is recommended to hire professional help. An experienced business broker to perform these necessary tasks for you. Professional help is more appreciated when your see that your business worth is established based on industry and appraisal standards, buyers are pre-qualified to full quality potential and assurance that you can get your desired price for the sale. You should also consider getting advice from certified financial accountants to help analyze your business worth through the process of business valuation based on your business’ earning power, intrinsic value, market comparisons and goodwill.

Finding A Business Broker In Portland, OR

What is a Business Broker?

A business broker is one who is engaged in the business of facilitating the sale of a business which is up for sale in the market. He serves as the mediator between business sellers and business buyers in all the stages of processing the transaction.

How Can a Business Broker help in a Buying/Selling a business?

  • The Pre-screening Process.

A good business broker only accepts listings that are properly documented, i.e. business owners are required to provide a complete financial disclosure particularly for those businesses that are being sold way up above the fair market value. An experienced business broker can “smell” the bad risks and can protect the business buyer, most especially the first-time buyers, by pointing out these avoidable risks.

  • Zero in on target goals.

Not all buyers wanting to have a business of their own are intelligent business buyers. A business broker comes in handy when analyzing what the business buyer may really need based on his interests and skills. Most often, professional business brokers act as matchmakers, helping the buyer select the right business and satisfying the business seller’s asking price.

  • Negotiations.

The process of negotiating the business sale is the most crucial stage. This is when both parties would come to appreciate the business broker’s support in the discussions leading to a successful compromise in finally closing the deal. As a professional negotiator, he can thresh out the differences in opinion and regulate the transactions without taking sides to come to a unified solution for everyone at stake.

  • Documentation

Closing the business sale is just the beginning of a long paper trail in completing the deal. Professional business brokers are adept in going through the whole caboodle of obtaining business permits and licenses. Needless to say, a business buyer’s wisest decision to make is to hire the best business broker to do the paper work. Government rules and regulations are tough to beat but business brokers have mustered their way through all the “red tape”.  For a minimal 5-10% broker’s commission,  a business buyer gets peace of mind knowing that he had purchased the right business for the most reasonable price while the business seller gets full satisfaction of getting back his business’ worth and more.

Where to Find a Business Broker?

Congratulations! You would not have read this far if you did not take the initial step in finding a business broker. You may have gone through checking the newspapers ‘classified ads or “leafed” through the yellow pages but the quickest way to finding the best business broker is just a click away in this worldwide web.

If you are still in doubt, then ask for referrals from other business sellers, seasoned business buyers who have hired experienced business brokers . Ask your friends, friends of friends who may know bankers and financial institutions that come in contact with professional business brokers.

What to Look for in a Good Business broker?

A good business broker’s worth is gauged on how fast he can help both business seller and buyer in closing a business sale. He basically acts as a sounding board between both parties. An experienced business broker can easily facilitate a productive discussion as he represents a neutral ground where buyer and seller may come to agreeable terms and conditions prior to closing a sale

Buyers on the look-out for an existing business for sale can use a good business broker that will go an extra mile in knowing the buyer’s specific needs such as target location, business size, the industry niche and all other parameters. At the end of the day, it is still the “gut” feel that matters, like “love at first sight”, you know you have found the right business broker when communications do not end with “Goodbye!”

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.

How Long Does It Take to Sell A Business? Get Insights from Portland, OR Business Brokers

Portland Business Brokers Provide The Right Solutions to a sure Business Sale.

Selling a business is just like selling any tangible product. You need to make your product attractive to get the attention of prospective buyers. In selling a business, you need to prepare the necessary documents to go with it. How well you prepare your business affects the type of deal you obtain and the length of time you are able to sell.

Pricing and terms in correlation with the conditions set for the buyer to enter an easy deal are also part of the whole process. If you would consider eliminating the impediments to make your business more appealing to the right buyers and ease out the path, you could sell and close the deal fast.

The Process of Selling a Business

The initial meeting between you and your Portland, Oregon business brokers would be a “get-to -know -each -other” kind of stuff. You exchange pleasantries, discuss your current business and your business plans, and then start laying out the selling strategy.

The second stage involves more plans, research, and valuation. This step alone may take up much of your time. It could be for a minimum of a few weeks to several years. It is the stage where your Portland business brokers will do some research, study the market analyze your business, and will advise you on what you can do to put additional value in to your business.After your business broker presents everything to you, you are now ready to decide when you want to sell.

The third stage is marketing your business in a structured package. This is to diminish the time and enhance the outcome. Your Portland business brokers would be preparing the promotional ads, create a prospective buyer’s list, aggressively offer your business to the prospective buyers in the prepared list, meet up with prospective buyers, conduct an auction to whet buyers’ to pit against each other.

The fourth stage is due diligence. This is the crucial phrase where time seems to stand still. Buyers get to scrutinize the businesses and this is where most deals disintegrate.

The fifth stage is the final negotiation along with the final documentation and deal structuring.
The sales process is a well-structured and clear-cut progression but like all else it is far from perfect as it has inconsistencies and complexities. The duration of the whole sales process lasts for a minimum of one month to as long as 9-12 months.

The following factors may affect the duration of the whole process:

  • The amount of time you spend in the second stage, building up value to your business and deciding when you are ready to sell
  • The level from which to create your business transparency
  • The level from which the buyer and your business are respectable to fit for each other.

It is advisable to consult your Portland, OR business brokers for the best solution to your specific needs.

The Advantages of Using Business Broker Sacramento

Business Broker Sacramento

Business Broker Sacramento: A Reliable Business Partner

A business broker Sacramento is regarded as third party facilitator in a business sale including handling of transaction details. They are intermediaries between a seller and a buyer of a business that is listed in the market for sale for up to $10M. Like real estate agents, they bring together the sellers and the buyers, facilitate the negotiations, and handle all after sales transactions and documentations. They are duly licensed professionals abiding by their respective states laws.

There are various good reasons to employ a business broker Sacramento rather than dealing with the business sale by yourself. You are able to save time and focus more on your daily business activities. Selling a business may take months to complete. Tons of documentations are prerequisites before any business sale can commence. If you do not have the time to do all the necessary paper work, then it is advisable to avail the services of a business broker Sacramento. A business broker Sacramento can assemble the documents for you as they are needed, not to mention, increasing in volume as negotiations transpire.

A business broker Sacramento may also save you time by qualifying prospective buyers. A business broker Sacramento  creates advertisements and publishes listings to reach out to prospective buyers and let all interested purchasers know that your business is up for sale. Chances of attracting potential buyers increase with every advertising and publishing activity your business broker makes. By qualifying prospective buyers, he may be able to weed out individuals who may not be capable of buying at all.

Business brokers are experienced in their field of expertise and can bring only serious buyers to genuinely negotiate with you. Often, the experienced business broker Sacramento maintains a ready list of potential buyers at hand. Should you employ a Business Broker Sacramento to handle your business sale transaction, the need to advertise may even be out of the question.
While the advantages of using a business broker may appeal to your business sense, it is wise for you to look over the other side of the fence, so to speak. Business brokers do have their downsides. They are not con men, as you may imagine, but still you might be considering on buying or selling a business on your own. Keep in mind that business brokers earn their keep from the standard commission they require for every closed transaction.

You are not guaranteed of a good deal if the broker withholds important details about the business in question. If you are buying a specialized industry, the business broker might lack the knowledge of the particular business and will fail to promote sales. Above all these reasons, the broker may not share your intense need to see the deal completed. Nevertheless, it is within your good judgment as to how to proceed with your business as no one else can decide for you.

Client and Customer Relationships with Business Brokers Sacramento

Business Brokers Sacramento

 

 

 

 

 

 

 

 

 

Business Brokers Sacramento Valuable Services

Business brokers Sacramento, otherwise known as intermediaries or business transfer agents, help sellers and buyers of privately owned small business in the selling and buying process. A Business Brokers Sacramento appraises the particular value of a business; publicizes it for sale with the option of revealing its identity or not; handles the preliminary prospective buyer discussions, interviews, and negotiations with potential buyers; facilitates the development of due diligence investigations and lends a hand to the overall business sale transactions.

Agency relations in business proprietorship dealings engage  Business Brokers Sacramento as the representative of the principal client, whether that principal is a seller or a buyer. The principal broker and his agents become the agents of the principal. The third party in the dealings, who does not hold agency relations with the broker, becomes the broker’s customer.

Conventionally, Business Brokers Sacramento provide a standard full-service brokerage relationship based on commissions under a duly signed agreement with a seller or with a buyer, under a buyer representation agreement. This generates, under common law in most states, agency relations with fiduciary duties. Some states may also have rulings that control and determine the nature of the exemplification along with specific licensing requisites for the business broker.

In some states, Business brokers Sacramento may be hired as a transactions broker who represents neither seller nor buyer as an agent. Transaction brokers work to expedite the dealings with both seller and buyer on the equal level of trust. Dual agency comes about when one brokerage acts in behalf of both the buyer and the seller under written mutual agreements. Individual state laws treat dual agency differently. If an agent is allowed by the state law to represent both parties in a one transaction, the brokerage is considered a Dual Agent. There are special laws covering dual agents as regards price negotiations.

In other states, Dual Agency is permissible in situations wherein the same brokerage represents both the seller and the buyer. If one agent has a listing and another agent has a buyer who is interested to buy the listing, Dual Agency come about by designating each agent as an “intra-company” agent. The principal Business Brokers Sacramento retains the Dual Agent status. A few states allow an agent and a broker to represent transactions as dual agents.

The buyers and sellers are the principals while the Business Brokers Sacramento and their agents are the principals’ agents in the sale that is defined by law. However, agents are not given authority to sign any offer to purchase or any closing document. The Business Brokers Sacramento may include their company’s name on the contract in their capacity as agents for the respective principals.

Types of Services That Sacramento Business Brokers Can Provide

Sacramento Business Brokers

 

 

 

 

 

 

 

 

Sacramento Business Brokers Excellent Business Service Providers

Sacramento business brokers’ services may vary depending on the skill set and practice of the business broker. The general services that Sacramento business brokers may provide to a client are:

  • Aid the client in the establishment of a “Most Probable Selling Price Valuation” or MPSP Value
  • Formulate an all-inclusive Information Memorandum outlining the business for potential buyers
  • Search for Buyers
  • Market the business to potential buyers
  • Screen prospective buyers for capability to conclude a purchase
  • Provide deal constituting advice and direct negotiations
  • Provide general deal management as guide through the whole process
  • Help preserve confidentiality of the transactions
  • Hourly Consultations for a fee, depending on the needs of the client

One of the major services provided by a Sacramento business brokers is allowing owners to concentrate on running their respective business while the sale process is in progress. The sale process may take 6 to 12 months to consummate. Employing Sacramento business brokers is not a requisite for the conveyance or sale of a business or for acquiring a SBA loan or Small business Loan from a lender. However, in sale transactions where a broker is employed, a special escrow attorney called party handling closing or a settlement attorney is drawn to  warrant that all parties, including brokers, agents and sellers involved be paid accordingly. Lenders have their own special requirements for SBA loan.

Sacramento business brokers service the market involving the sale of businesses with less than $10 M transaction values. Larger companies are categorized in Middle Market that employs mergers and acquisitions firms that handles special sales. Business brokers also participate in the middle market activities when the transactions involve two or more small companies. Merger & Acquisition firms and Business Brokers sometimes overlap transactions in the boundaries of their respective markets. These boundaries are called the TransMarket or Transitional Market.

You gain more knowledge on how a business sale is done when you use a business broker to handle the job for you. Business brokers are often tapped to help in maintaining confidentiality. Normally, the identities of buyer and seller are withheld up to when a particular buyer has been favored by the seller. In some areas, particularly in small communities, all details are known especially if the business in question is popularly known.

In the business world, buyers are always up on guard for good investment buys. Once a listing is posted, these potential buyers come up front, and ready to negotiate at the first smell of a good deal. If you are interested in purchasing a business, consult one of the Sacramento business brokers as more likely, he can bring you a complete listing of all the good businesses available for sale in your area. The key here is saving time and unlocking the door may bring you quick results.