Buy And Sell Businesses & Assets With A Broker

We’ve Brokered Over $65 Million In Transactions

Michael specializes in moving quickly on large 7-8 figure deals and can help you acquire or sell your business with his extensive network of industry contacts. His acquisition of VPN.com as the 7th largest transaction of 2019 speaks for itself.

One of Michael’s favorite transactions was CoolMathGames.com, which he contracted for $1.8 million.

Sharjil has a well known resume in the premium brokerage industry. He excels at sourcing great buy and sell targets and has brokered countless 6-8 figure transactions.

Sharjil brokered six of the world’s largest 100 domain deals in 2018 and three of the largest 100 deals in 2019.

Commissions Starting at 20% for Standard Transactions

Table Of Contents

• How To Buy Or Sell Your Business For Premium Value
• What Is A Business Broker?
• What Does A Business Broker Do?
• How To Sell A Business
• Value Your Business
• Prepare For The Sale
• Find Potential Buyers
• How To Buy A Business
• Narrow Down Your Choices
• Find A Business For Sale
• Evaluate The Business
• Secure Your Financing
• Finalize The Deal

How To Buy Or Sell Your Business For Premium Value

Buying or selling a business involves a lot of negotiations, paperwork and discussions before you close the deal. If you’re just starting out, you might be tempted to cut out the middleman and try to negotiate the deal yourself. However, a business broker can help you get the best value, secure a fair deal, and avoid parties that might take advantage of you. Here’s what you need to know about hiring a business broker.

What Is A Business Broker?

A business broker negotiates deals between buyers and sellers. When one party transfers ownership of a business to another, the business broker deals with paperwork, contracts, licensing, permits, coordination between other parties and other aspects of buying or selling a business. They also look out for scams, shady deals and offers that might not be in the client’s best interests.

Business brokers typically charge a fee of 5 to 10% of the business’s cost. You can hire a broker during the final stages of the transfer process, but many people prefer to work with a business broker from the beginning. This adds an extra fee to the process, but it saves you a lot of time, money and stress in the long run, especially if the business broker steers you away from a bad offer.

What Does A Business Broker Do?

Essentially, a business broker is like a realtor for businesses. Whether you’re buying or selling, business brokers offer a wide range of services throughout the transfer process. Here’s a look at what your broker could do for you:

• Evaluate your interests. If you’re a buyer who doesn’t have a specific business in mind, your broker could talk to you about your needs, interests and financial goals. With this information in mind, they’ll find sellers in the area who might have what you’re looking for. You’ll become a discerning buyer instead of one who places offers everywhere.
• Find the right buyer or seller that meets your needs. Business brokers typically have years of experience in the industry, so they know how to look out for overpriced businesses, underpriced offers and other parties that might take advantage of you. Some shady deals aren’t obvious at first glance, but a broker could pinpoint the issues right away.
• Set the right price for your business. When you’re a seller, your business broker will help you value your business for the highest possible price without overcharging or withholding information from potential buyers. You might get more money than you expected, making your broker well worth the investment.
• Interview people who might be interested in buying your business or selling their own. Your business broker knows how to weed out unfit parties and find the right buyers or sellers for your business. Once they’ve gathered all the information that they’ll need, they’ll narrow down your options to find the best possible choice.
• Deal with the legal aspects of ownership transfer. Your broker could help you apply for permits and licenses, legally buy or sell the company and prevent potential legal issues before they arise. They may work directly with an attorney to make sure that everyone abides by the business laws in your state.
• Hire additional people for your team. In addition to an attorney, they might talk to bankers, accountants and other parties who can ensure a successful transfer. Your business broker will know who to hire for your project–you won’t have to interview several professionals until you find the right one.
• Investigate the company’s finances. Your business broker will make sure that the financial information is clear and up-to-date before they proceed with the transfer process. Whether the previous owner made an honest mistake or acted deliberately, you won’t end up with a business that has questionable financial dealings.
• Fill out paperwork on your behalf. Your broker fills out the paperwork and files it on time so you won’t have to worry about missing a deadline. Additionally, your broker knows exactly what to file, so the deal won’t fall through just because of a missed contract.
• Negotiate a fair deal with the buyer or seller. If you try to negotiate the deal on your own, you might end up overpaying or selling the business for less than you expected. Additionally, negotiations can become strained if the parties involved can’t come to an agreement. Since your broker takes care of the negotiations for you, you’ll know they’ll be handled in a civil, professional manner with little or no stress on your part.
• Keep your dealings confidential. If word gets out about the transfer, other parties could use this information to their advantage. A broker keeps the process under strict confidentiality so that no one knows about the sale except the people involved in the transfer.
• Talk to you about your financial options. Buyers need loans or investors before they can buy the property–and if you have to search for financing yourself, it slows down the transfer process. Your business broker may review your financing options and guide you to the right option for your project.
• Offer emotional support. Trying to buy or sell property yourself involves a lot of stress, effort and emotional weight. Even if you’re an experienced business owner, no transfer goes exactly as you expected. A broker takes a lot of the stress off your shoulders and speeds up the process so you can move onto the next phase of your career.
• Evaluate the current market. Your business broker could tell you if this is a good time to buy or sell a business in the first place–and if so, how to secure the best deal. Other factors they might consider are the location of the business and the demand for its products or services. If your broker doesn’t think it will work out, they might suggest alternatives that give you a better return on your investment.

With a business broker on your team, you could focus on launching your business or starting a new career while they take care of the most challenging parts of the process.

How To Sell A Business?

When it’s time to move on, selling your business gives you cash in your pocket and the freedom to retire or tackle other projects. However, you’ll need to take a few steps to show potential buyers that it’s a good investment. Here’s how to sell your business without undervaluing your company or overcharging your buyers.

Value Your Business

To start, you’ll need to know how much your business is worth. A business broker could help you gather the documents that you need to value your business. You could also hire a third-party appraiser to get an objective value. Either way, you’ll need documentation like your tax returns, profit statements, property deeds and other financial statements.

To get an accurate value, you’ll need to list your business properties like patents, copyrights, vehicles, products, equipment, cash and real estate. At the same time, you’ll need information about your debts and liabilities that could reduce your business’s value. This includes expenses, debts and losses. Keep in mind that intangible assets like your brand’s reputation are just as important as physical assets.

Potential buyers need to know that your business is a great investment. Show them your business plan that outlines your strategy, highlights your accomplishments and points out your contributions to the local community. A business plan also gives buyers a roadmap to replicating your success once they take over. They won’t just see your business’s current value–they’ll see its potential value as well.

Prepare For The Sale

Once you’ve gathered the paperwork, you’ll need to prepare for the sale while you still own the company. Start increasing your profits as much as possible to increase the business’s value. If you try to sell the business when your profits have plateaued or dropped, buyers will be less likely to make an offer. They want to buy a business that virtually ensures a return on their investment. You don’t want to artificially inflate your sales but focus on making your business attractive to buyers.

When someone buys your company, they’re buying all the customers, assets, and revenue that go along with it. If you have a small customer base, look for more customers before you put the business on the market. Buyers might not be interested if you don’t have many clients. To them, this means that they won’t make a profit right away–or worse, your business might be failing. This might not necessarily be true, but you need to show buyers that they’ll see a quick return on their investment.

Before you place your business on the market, talk to your business broker about the current market conditions. The timing could determine whether you make a profit or sell your business at a loss. For example, if you have a VPN business for sale, you might do well in this technologically advanced age. However, nothing is guaranteed–the market changes every day, and your broker might advise you to sell the business at a later date.

Additionally, buyers want a business that’s relevant and up-to-date. Sometimes, it’s best to sell your business while you’re on top, especially if you suspect that the market is about to change. Don’t wait until your business has started to decline before you put it on the market–you’ll lose your advantage and have trouble paying off your debts.

Find Potential Buyers

Your buyers have high expectations for your business, but you can have high expectations for your buyers in return. You don’t have to accept the first offer that comes along. With the help of a business broker, you can evaluate each offer and determine whether it’s right for you.

To start, make sure that your buyer has secured funding. You don’t want to agree to the sale only to discover that they don’t have any capital. Ask them for proof that they’ve taken out a loan and have access to the funds. If they plan on using their own funds, ask for financial documentation. This doesn’t just apply to the initial sale–your buyer should have enough money to keep the business running for the next several months.

You should also ask the buyer about their business experience. A first-time buyer could still run your business–after all, everyone’s a first-time buyer at some point. However, talk to them to make sure that they know what they’re getting into. You’re looking for serious buyers who can pay a fair price and invest time and money into the business to continue its upward trajectory.

On another note, ask the buyer when they plan on making an offer. Not everyone is ready to buy a company right away–some parties plan on buying the company weeks or months from now. They might need to secure financing, sell their current business or move to another location. In any case, you need to know when they’ll make the offer so you can plan accordingly or reject their proposal altogether.

Ultimately, if you spend too much time with unqualified parties, you’ll delay the sale and potentially lose profits. These individuals might even leak information about your business that compromises the sale. When you hire a business broker, they could weed out unqualified buyers and even conduct interviews on your behalf.

How To Buy A Business?

Buying an existing business is a great way to start a new career, transition to a new path or leave a tedious office job and start being your own boss. When you hire a business broker, they can do a large chunk of the work for you, but it’s important to understand every step of the buying process. Here’s what happens when you buy your own business.

Narrow Down Your Choices

Before you start, ask yourself what kind of business that you want to buy. Do you want to invest in a large operation or a small, family-owned business? What about becoming a franchisee for a global chain? You can choose from restaurants, retail stores, bars, drive-thrus, coffee shops, markets, service-based businesses and much more.

If you’re not sure where to start, think about your interests and professional history. For example, a family-owned restaurant might be a better choice if you have a history in the food industry. Even if you had an entry-level position like fry cook, you’ll still have knowledge that makes it easier to run your business.

Find A Business For Sale

Next, you’ll need to find a business for sale in your area. Someone’s always selling their business, so it won’t take long to find offers. You can check out offers on social media, although the prices and listings that you find online aren’t always accurate. You could also visit a more reputable website where buyers connect with business owners. If you have a business network, ask people if they’ve heard news about companies for sale.

Newspapers still have classified ads, so browse print media to see if you find anything in your price range. Other options include going to conferences or browsing Facebook groups. If you hire a business broker, they’ll help you find the right business for your needs. The perfect business might not be exactly what you expect–in fact, it might challenge you to step out of your comfort zone. Fortunately, these experiences offer lessons that you wouldn’t have learned otherwise.

Evaluate The Business

A business might look great on the outside, but that doesn’t mean you should immediately start drawing up contracts. First, you should evaluate the business’s integrity. Learn about the business’s sales, competitors and how it performs in the market. If the owner’s selling the business simply because it failed, you don’t want to put that burden on yourself. You should also consider the current state of the market–a good business plan can fail simply because there’s no demand for the product or service.

Next, look into the legal aspects of the business. Make sure that the business isn’t violating any environmental, federal or zoning laws, and check to see if they have all the permits that they need. Similarly, ask an accountant to review the business’s financial documents. You’ll need accurate information about their sales, expenses, debts and tax returns so you can decide whether the business is a good investment.

Finally, review the business properties like the products, furniture, equipment and building itself. You might want to look elsewhere if the properties are outdated, barely functioning or unacceptable to customers. Making a few repairs doesn’t have to be a deal-breaker–most properties require at least a few adjustments. However, you don’t want to sink most of your capital into repairing the property before you even open the business.

Secure Your Financing

You’ll need financial backing before you can purchase a business. For many buyers, securing a small business loan is the easiest way to get the capital that they need. Each type of loan has varying term lengths, interest rates, fees and eligibility requirements. To figure out which type of loan is right for you, visit your local bank and discuss your options. You could also talk to your business broker about choosing a loan.

Most banks won’t give you a loan unless they’re confident that they’ll get their money back. For this reason, you’ll need a good credit score and a strong financial record. The bank will probably ask for your tax returns as well as documentation on the business’s revenue, debts, expenses and cash flow. You might have to make a down payment of up to 25% of the loan. Once you qualify, you’ll have the money that you need to finance your business.

If you already have the cash, you could simply buy the business outright. However, keep in mind that you’ll have to pay for inventory, employees and other operational costs afterward. You might end up taking out a smaller loan to keep the business afloat until you start making a profit. Make sure you talk to your business broker before you purchase a corporation–you don’t want to spend all your money and end up selling the business later at a loss.

Other options include splitting the costs with a business partner or making payments directly to the seller. For the second option, the seller will have to agree to special financing. You’ll make payments directly to them for the length of your loan, giving them a temporary cash flow. However, some sellers are reluctant to offer financing because they might not see a full return.

Finalize The Deal

Once you’ve reached an agreement with the seller, it’s time to close the deal. You’ll need to gather all the documents, including the lease agreement and bill of sale. Depending on the business, you might also need documentation on copyrights, patents, company vehicles and more. A non-compete agreement could prevent future competition between you and the seller. You’ll also need tax documents so you can accurately file your tax returns at the start of the next year.

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Let our experienced business brokers walk you through our three-point pre-negotiation process on how easily you can secure a buyer for your business.