Why sell a business?
Why Would I Want
to Sell My Business?
At one time or another, most business owners consider selling their
businesses for such reasons as these—
Under Capitalized
You've taken the business as far as you can, and it will require a
significant capital infusion to take the business to the next level.
Dispute with Partners, or Divorce
One or more partners wants to be “cashed out,” or a partner has lost
his or her interest because of divorce or a dispute.
Death or Illness
An owner or partner has suffered death or a serious illness, and his or
her interest needs to be cashed out to cover expenses or to settle the
estate.
Relocation
Some other event necessitates a major move that will prevent you from
continuing with the business.
Burnout
Even the best of businesses can drain our energy. Often, owners are
tired of handling the day-to-day responsibilities, managing employees,
or keeping the books.
Upgrading to a Bigger Business
Successful owners often sell their current business to step up to a
bigger opportunity.
Poor Management
Small business owners must wear many hats, and rarely are they master of
all aspects of their business. Sometimes owners need to get out of the
business because they have taken on a business that does not fit well
with their skills and abilities.
What Is My
Business Worth?
The value of your business is determined by many factors. Mercury Business Brokerage
will provide free consultation to give you a “broker’s opinion of
value” based on such factors as these—
Tangible Assets
Such tangible assets as inventory, furniture, fixtures, equipment, and
receivables all factor into the value of your business.
Intangible Assets
Intangible assets like time in business, established customer base,
training, non-compete agreements, exclusive markets, established
suppliers, and expected growth potential all add value to the business.
Lease Agreement
The terms and transferability of the existing lease agreements can be a
critical factor in selling your business. Favorable terms and easy
transfer increase the price, whereas unfavorable terms or inability to
transfer (or, worse, requirement to move the business) may greatly
reduce the value and price of the business.
Quantity and Quality of the Income Stream
The key factors of sales, gross profit margins, cash flow, quality of
records, retention of key management, and positive business trends all
help support a greater value.
Risk Vs. Price
Risk factors are evaluated and considered. Higher risk for the buyer
usually results in a lower selling price, and lower risk for the buyer
usually results in a higher selling price. The greater the chance of
your business continuing and growing without you, the greater the value
to the buyer.
Market Comparables
Recent sales of other businesses in your market are considered. Local
and national economic conditions are evaluated along with many other
factors.
At Mercury Business Brokerage, we will evaluate all these and many other
factors at no cost to you and help you arrive at the right sales price.
For many small- to mid-sized businesses, the value can be estimated at
two to three times the annual discretionary cash flow of the business.
Our brokers have received specific training and use sophisticated tools
and analysis to establish the value of your business.
Why Use Mercury Business Brokerage?
Knowledge and Experience
Our experience can shorten the selling process and bring you a higher
price. Private business owners operate their businesses to minimize
taxes. We know how to present the true benefits of your business.
Free Consultation
In a no-cost, no-obligation consultation with you, we take into account
cash flow, assets, financial history, current conditions, markets,
competition, business location and the economy (among other factors) to
determine a broker’s opinion of value.
Why not use a real estate broker?
A business sale is very different from a real estate sale. Most real
estate agents do not have the training, experience, or understanding to
value or sell your business the right way. Consider some of the
differences—
| The sale of a
business is characterized by: |
 |
a confidential process |
|
value based on cash flow |
|
few comparables available |
|
a complex transaction |
|
|
| On the other
hand, a real estate sale is characterized by: |
|
a public process |
|
value based on real property |
|
many comparables available |
|
a simple process |
Would-be business sellers are often reminded that if they wanted a
“FOR SALE” sign posted out front and their financial statements
posted in the window and published on the Multiple Listing Service, then
a real estate agent would work just fine! If you want to keep the sale
of your business confidential while still maximizing your exposure to
potential buyers, then see a business broker. Mercury Business Brokerage
specializes in business sales and in real estate sales that are
associated with business sales.
Why not sell it yourself?
Because you’re at a disadvantage. It takes owners several years to
successfully sell their businesses on their own and often at a
drastically lower price than could have been achieved. In addition, the
distraction of selling their business on their own actually causes the
value of the business to drop as the owner is distracted from the
day-to-day operations. You as the owner should focus on what you do
best—running your business. Let us focus on selling your business. We
do the analysis to show you what your business is worth; we prepare the
business presentations to show prospective buyers; we advertise and
market your business to buyers and qualify them before interrupting your
work. Our professional efforts allow you to continue to grow your
business and maximize its value.
Confidentiality
One of the big benefits of using a business broker is confidentiality.
Most business owners do not want their employees, competitors,
suppliers, or customers to know they are considering selling, as such
knowledge could damage their ongoing business. Mercury Business Brokerage
maintains confidentiality so your business can move forward without
interruptions.
Time
Most owners who sell their own businesses take several years to find a
buyer. Selling a business is a grueling, competitive ordeal that can be
a big distraction. We take away that burden and shorten the process.
Documentation, Marketing, and Exposure
We prepare all the marketing materials to be released only under a
confidentiality agreement to qualified buyers. We advertise locally and
nationally, both in print and on the World-Wide Web in a confidential,
generic manner. Your listing will be posted not only on Mercury Business Brokerage
web site but also on several other national sites, such as USBX,
BizBuySell, StartupJournal, IBBA, and others.
Qualifying
Mercury Business Brokerage will match qualified buyers to your business.
Your business will typically be shown to about fifty potential buyers.
Then five to ten of those buyers look closely at the business, and one
or two of them make offers. We can help ensure that these buyers are
capable of completing the transaction—before interrupting you in the
operation of your business.
Negotiation and Follow-up
Mercury Business Brokerage can help structure the deal and get the right
offer for you. As an intermediary, we aggressively pursue the buyer
without compromising your negotiating position. Selling your business is
our only business.
Success!
We bring our expertise and experience to work on your behalf. We have
walked in your shoes and owned and bought and sold our own businesses.
We know what it takes and how to get the job done the right way.
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