Sellers

A business is frequently a sellers most valuable asset. An experienced Business Sales Specialist leverages their knowledge and experience to price a business for maximized return (without asking it out of the market). Different lines-of-business have differing, specific, and unique circumstances impacting valuation. The importance of valuing a business correctly cannot be overstated. Not infrequently, valuation becomes the most significant element of a sale. To effectively evaluate a business, a Business Broker or Advisor should request the following information:

3 Years of Tax Returns for the business.
Profit and Loss Statements for the last 3 years, and current year-to-date.
Detailed expense list.
Copy of business check-stubs.
Any assumable notes.
Discuss Seller Financing with your Business Sales Specialist. Seller financing is an indication of confidence in the business. Seller financing is an important point of negotiation with buyers, and can offer significant influence and inducement. Of note, Lenders will currently not finance the purchase of many types of businesses, and finding cash buyers may or may not be an option. For such businesses, seller financing is almost a requirement.
Franchise agreement (if applicable).
Asset list (i.e., detailed list of Furniture, Fixtures, and Equipment - FF&E).
Accounts Receivable, and wether they will be included in the sale.
Description and value of Leasehold Improvements.
Description and value of any Real Estate that may be offered.
Copy of existing lease, including description of terms and options.
Does the lease state "assumption shall not be unreasonably withheld" or similar language.
Number of Square Feet
Lease Expiration Date.
Information on any Sub-Leases
Provide a valid reason for the sale of the business.
Employee list with job description and salary (including managers).
Hours per week owner works in the business.
Number of years business has been open (including previous owners), and number of years you've owned it.
Describe any required licenses, permits, or certificates.
Specify any contracts with customers, suppliers, etc.

Marketing a business is a team effort between the seller and the sales specialist. In addition to providing accurate, complete, and up-to-date information, the business must be kept neat, clean and organized. If possible, required repairs or refurbishments should be completed prior to a showing. Answer questions simply and honestly. In most cases, this will be a big leap for the buyer, who even though they may be excited, is also likely to be somewhat wary and apprehensive. All offers should be considered and at least countered, even if it is only a small change from your original position.