Selling a Business

Fair Market Value refers to the amount at which a business would transfer from seller to buyer with both parties understanding all conditions and with neither party being forced into the transition. This value is neither a high value or a low value. It is a reasonable estimate at the mid-range value at what the business should transfer hands.This valuation report is used to support the price of the business moving forward.

It takes great expertise to value a business properly and accurately. Businesses for sale are best valued by one that specializes in both business brokerage and business valuation analysis. At NBB, we have you covered.

While marketing is a critical part of the sales process, damage can be done if word gets out to clients, vendors, employees and/or competitors.

At NBB we understand this. We have the professional know-how and skill to understand the current selling market, how to generate ads that attract the highest amount of interested buyers, all while maintaining the utmost in confidentiality for you and your business.

Before any information is released, a Purchaser Profile and legally binding Non-Discloser Agreement is filled out and signed by all potential buyers.

In order to market a business properly, NBB creates a Confidential Business Review (CBR), one of the most critical elements of the sales process. This document includes specific info about the company’s history from inception, background, processes, employees, industry, geographic locations, suppliers and the like.

It is true that a CBR shows the business in its best light. Sellers also the opportunity to make full disclosure of any negative aspects of the business so the buyer can assess the business as a whole which only serves both parties in the long run.

A well written CBR can add an extra 20 to 30% to the purchase price as its’ rich information and transparency supports asking for more. It can also help improve the terms of payment for the seller.

Another critical element to the sales process is the negotiation strategy and deal structure. There is no one size-fits-all blueprint that matches all business sales. There are many issues, including the type of sale (asset or stock) that can affect this process and its final outcome where terms are successfully agreed to.

We know how to finesse the negotiation process and structure a deal that will be fair and reasonable to you and the buyer, always keeping a win-win outcome as the goal. Anything less usually results in a failed deal.

A successful broker must have the ability to reach out and work with other professionals that are integral to the overall success of the sales’ process. He or she has a reasonable working knowledge of how these individual professions work and how to speak the language of each to be able to request the right information, be it from accountants or attorney, or to successfully negotiate with the landlord on the transfer of a lease (where applicable).

With this important criteria in mind, NBB works successfully with each outside professional group to better serve you.

A broker is critical to the final transfer of a business. Once a successful deal has been negotiated and both parties are happy, escrow finalizes the sale. There are many legal elements that are handled through escrow and we will help you understand the process and what will be required during this process.