Small Business For Sale
- Why Would I Want to Sell a Business?
- What Is My Business Worth?
- Why Use Alpine Business Brokers?
Why Would I Want to Sell a Business?
At one time or another, most business owners consider selling their businesses or franchise 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. Alpine Business Brokers 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 Alpine Business Brokers, we will evaluate all these and many other factors at no cost to you and help you arrive at the right sales price. For most small businesses for sale, 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 Alpine Business Brokers?
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 small 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
- value based on real property
- 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. Alpine Business Brokers 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. Alpine Business Brokers 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 Alpine Business Brokers’ web site but also on several other national sites, such as BizQuest, BizBuySell, StartupJournal, IBBA, and others.
Qualifying
Alpine Business Brokers 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
Alpine Business Brokers 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.
(801) 224-8848 – Utah County
(801) 355-4400 – Salt Lake County
(435) 649-7470 – Park City
(435) 673-7800 – Saint George
(801) 437-2629 – fax us at your convenience
info@alpinebusinessbrokers.com – email us and we will call you
240 N 1200 E Ste 202
Lehi, UT 84043