Selling a Business

SHOULD YOU CONSIDER SELLING?

Deciding when to sell a business is often a difficult decision.  Selling at the right time can mean getting the best possible price.  A thoughtful study of the present condition of the business and the current economic clientele are essential.

The business owner will also need to consider the personal impact both positive and negative that may result from the completed transaction.  Often a decision will be prompted by the seller's concerns, which may include:

• Exposure to business risks often exacerbated by personal loan guarantees.
• Personal desire of the owner to retire.
• A need to reduce stress and/or spend more time with family and friends.
• Divorce or dissolvement of partnership.
• Owner's desire to pursue other business or personal interests.
• Lack of sufficient working capital.
• A need within the company for new skills, new resources or a new philosophy to cope with ever changing economic forces, government regulations and competition.
• Failing health or disability of the owner or key employees.

These valid reasons and many others, for considering a sale do not imply failure or willingness by the owner to accept less than a fair price for the business.

HOW MUCH IS THE BUSINESS WORTH?

A business enterprise, like any asset, is worth what a buyer is willing to pay:

Buyers ask countless questions, but they are primarily concerned with buying a successful business and obtaining a fair return on their total investment.  In addition, prospective buyers make many judgments about market position, proprietary know-how, competitive strengths, quality of the assets, growth potential and risks of the business.

To accurately determine the true earnings potential of a business, the company's financial statements, often prepared primarily for tax purposes, must be restated to reflect the true financial performance of the business.

Premier Sales helps the business owner determine the true value of the business and, most importantly, can help prospective buyers understand the reasons for such valuation and structure a sale for the maximum benefit of the buyer and seller.

IS CONFIDENTIALITY ESSENTIAL?

Sound working relations with employees, customers, suppliers and bankers are important factors to a company.  Any premature indication of a possible change in ownership could disrupt these relations and weaken the company's competitive position.  For these reasons, and many others, confidentiality is critically important at all stages.  With the proper procedures, it is possible to minimize the risk of any untimely disclosure.

In every transaction, there is an appropriate time to reveal that a sale may be imminent.  Proper timing of these sensitive announcements can contribute to smooth transaction and reinforce the buyer's willingness to proceed to a closing.

Premier Sales helps to ensure that information is only provided to Prospective Buyers that have been qualified and who have signed the proper Confidentiality Agreements.

WHEN IS THE BEST TIME TO SELL?

Usually the best time to obtain the highest price occurs when sales and earnings are good and trending upward.  A solid earnings trend will enable a buyer to pay a higher price and still meet his return of investment criteria.  A history of good performance also gives the buyer confidence in projected future earnings.

However, market conditions for business sales also significantly affect the sellability of a business.  Today's market is the strongest we have seen in many years.  There are thousands of serious buyers in the market.  Various types of financing is readily available and the recent reduction in capital gain taxes means the seller will get to keep more money from the sale.

WHO ARE THE BUYERS?

Depending on the size and type of business, there can be several categories of prospective buyers.  The most obvious are other companies in the same business for whom the acquisition would be a logical expansion with potential economies of scale, gain of new customers or product lines and elimination of a viable competitor.  Consideration should sometimes be given to the suppliers and customers of the business.

As more cash has become available for acquisitions, we have seen a marked increase in buying activity from private investment groups.  These sophisticated acquirers often have 10's and even 100's of millions of dollars immediately available to them for attractive opportunities.

However, based on our experience in selling hundreds of businesses, most prospective buyers are simply individuals who want to control their own future.  Many of them will be moving into the area from other states and countries.

Premier Sales is in continuous contact with all categories of buyers.  We utilize effective search procedures to find and screen those who are best qualified to buy your business.

WHAT SERVICES CAN YOU EXPECT FROM US?

Premier Sales gets results! By using our experience and know-how gained from hundreds of business sales since 1987, we guide you through all of the complex steps required to sell a business.  The first step will be our review of the company's history and your personal objectives to make sure that a sale is the best course of action.  This review includes an opinion of a range of selling prices the business is likely to garner in today's market.

If you decide to proceed with the sale of your business, Premier Sales then prepares custom tailored presentation documents, develops buyer prospect lists from our in-house databases and other resources, makes the proper approaches and screens the prospective buyers.  Only serious, qualified buyers will be presented to you.

Premier Sales will handle the entire transaction from the initial contract with potential  buyers through closing, including coordination with attorneys, accountants, landlords, utility companies and title agencies.

You may be asking yourself, "Why can't I sell it myself?"  There are several reasons why most owners choose not to:

• An owner representing himself cannot maintain anonymity and the sacrificed confidentiality could cause serious damage to the business.
• An owner may not be knowledgeable in current areas of law, accounting, taxes and marketing of businesses.
• An owner is typically a very busy person and cannot afford to take the time to contact, screen and qualify a large group of prospects to find a qualified buyer who is serious and will offer a fair price.
• An owner generally would not have the experience, knowledge and negotiating skills needed to sell his company efficiently and for the best possible price, particularly in a highly emotional negotiation such as the sale of a business where the buyer's objectives are totally opposite of the owner's.

Premier Sales has an experienced professional staff, knowledgeable and skilled in business transfers and they can make the sale of the business a relatively easy and satisfying experience.  Call us to find out how we can help.

WHY SELLERS HAVE CHOSEN PREMIER SALES!

All of our previous clients selected Premier sales to represent them in the sale of their business for the same reasons: Experience, Knowledge and Proven Results!

Who are we?

• The Number One Business Broker in Arizona according to "Arizona Business Magazine".
• One of the largest business brokerage companies in the United States.
• Experienced in representing over 1,100 business owners.
• A respected company with a history of successfully satisfying the needs of our clients in the sale of their businesses.
• A full service brokerage providing all of the services required from the initial valuation to the final closing.

Premier Sales is a multi-faced firm, specializing in:

• Mergers and Acquisitions
• Buyer Representation and Acquisition Searches

Our Associates have over 200 years of experience in operating, valuating and selling businesses.  The following are some of the organizations in which our associates are members and actively support:

• Valley Board of Business Brokers (VBBB)
• International Business Brokers Association (IBBA)
• Merger and Acquisition Source
• Better Business Bureau
• Scottsdale Chamber of Commerce
• Phoenix Chamber of Commerce
• Arizona Small Business Association

In addition, all of our associates hold valid Arizona Real Estate licenses.