We Get Asked This All the Time
Navigating the selling world can be daunting, especially for the uninitiated. That’s why business brokers exist. If you’re like most business owners who are new to the process of selling your business, you probably have tons of questions for business brokers. Let me shed some light on four that I hear time and time again. Hopefully, the answers below will give you a better understanding of what lies ahead and how we can help.
1. How does a business broker find a buyer?
A solid network provides the foundation for any reputable business broker. That requires connections, industry knowledge and experience. I’ve been closing deals – for myself and others – for 45 years. I know the printing companies, the owners, the end users, and the supply chain of most sectors within the printing industry.
Over the years, I have made hundreds, if not thousands, of connections. I keep in touch with many of these connections, because I regard many of them as potential educators and referral sources. Because of my ongoing relationships with these industry leaders, I‘d say that I have more qualified buyers than I do sellers.
And one thing I know for sure is that industry leaders are always looking for growth and expansion. When a seller comes knocking, I strategically align them with the ideal buyer that will take their company to the next level – and pay a fair price.
2. How long does it take to locate the “perfect” buyer?
It’s difficult to give an exact timeline, but the ultimate goal is to complete a deal within 4 to 6 months from concept to post-close.
As an example, we closed a multi-million dollar deal in four months, start to close. We sold both the print business and the customized real estate. Plus, we helped facilitate the key management employee agreements.
For many business owners, four to six months is much quicker than they’d expect. That’s why I recommend preparing yourself to understand the steps in this major transition. Don’t underestimate this emotional preparation phase either. Sometimes it can take a couple of years. If you don’t come to us prepared, the process will be overwhelming.
3. As a print-business owner, is it better for me to use a local business broker rather than an industry consultant?
That depends. But you’d better choose wisely, because about 75 percent of deals fall apart before, during or after the deal.
Ask yourself these questions:
- Are you a member of a print industry association? Who do they recommend?
- What are your revenues from the last three years?
- What is your reputation in the marketplace?
- Do you have a unique business model or serve a niche market?
- How much are you willing to invest to sell your business?
A local business broker may not understand the complexities and nuances of business-specific strategic deals and deals that are not done right, fall apart. Local business brokers tend to be generalists, focused soley on the deal, rather than focusing on the big picture and post transaction. It may cost less to work with a local business broker, but that’s because you’re getting less: they’re not nearly as targeted or strategic as an industry consultant.
Think of it like fishing. A local broker might cast a thousand lines into the ocean, hoping that something – anything – will bite.
An industry consultant, on the other hand, will look for a pond filled only with the type of fish you want to catch. Then, they’ll select the proper bait based on those fish, so they can get you exactly what you’re seeking.
LaManna Consulting Group prepares you for the confidential processes on both the sell side of the deal and the buy side connection. We educate you, we strategically position your business to be attractive to potential buyers, and we walk you through the whole process – from concept to completion.
We even help you with the post-sale transition, making sure you’re passionate about your personal life and fulfilled in your legacies during retirement.
4. Can I get an accurate business valuation without an on-site visit?
Absolutely. In fact, an on-site visit is rarely required for an accurate and detailed valuation. Think about the purpose of a business valuation for a moment: It’s to present information on how you stack up against the competition. What’s the first thing a buyer wants to know? The numbers.
Valuations always begin with the quantitative, which focuses on factors like profitability and scalability. Those are the primary indications of your business’s value in the eyes of the buyer. (Reminder: It’s the buyer who drives the deal.)
A buyer will want to know about your facility eventually, but only after they’ve seen the numbers. At the end of the day, even a facility that functions like a well-oiled machine overshadows a business that doesn’t generate cash flow.
These are the most common questions I get about business brokers; I’m just scratching the surface here. If you have further questions, you’ll want to read my other blog posts, particularly the “Ask Rock” series.
If you have more questions, call me at 561-543-2323. I’m happy to discuss your situation discreetly.