Sunbelt Business Brokers of Southeast Michigan: Our Services

What Does Sunbelt Business Brokers of Southeast Michigan Offer You?

Buying A Business

Security
A big advantage in buying an ongoing business is that you, as the new owner, have an immediate cash flow and an established customer base. You don't have to build a business; you simply take over an existing successful business with the present owner's assistance.

Financing
We assist you in obtaining financing. Banks are reluctant to finance business purchases for several reasons. First, all small businesses attempt to minimize profits shown on financial statements to reduce tax liability. Also, a bank cannot manage a business if foreclosure becomes necessary. Therefore, over ninety percent of business purchases are financed by the owners, which demonstrates their confidence in the business.

Confidentiality
Unlike the sale of real estate or franchises, the sale of an ongoing business is very confidential for both the seller and the prospective buyer. All inquiries are held in strict confidence. Meetings are confidential, and we are available after hours and on weekends.

Things a Business Buyer Should Know
At Sunbelt, we are advocates of finding a business that you like and would feel comfortable managing. You, like every other prospective buyer, have a vision of being your own boss and calling your own shots. A business must fit your visions to be successful.
An old saying in the real estate industry is..."The three most important things a buyer should look for are location, location and location." While location is important to a business buyer, be aware that track record and management round out the three components of a successful business.

Let's assume that you find a business that you like and its location is fine. But, because of poor management, the business may not show the greatest track record. Purchased for the right price and on the right terms, this business could become more successful with proper management, making it a good way to achieve your vision of being in business for yourself.
As a prospective business buyer, you will be concerned as to why the business owner is selling the business. Business owners sell for a variety of honest reasons. Besides the obvious reasons of retirement, bad health or re-location, many sellers simply tire of doing the same thing and want to move on. If it is a good business for you, the reason for the sale doesn't matter.

Remember, your Sunbelt Broker is a well trained professional who knows how to buy a business. Utilize your brokers talents and call your broker whenever you need assistance or have questions about the process.

When Selling Your Business Confidentiality is Key
You've made the big decision to sell. Your books are in order, you've spiffed up the premises. What are you waiting for...

Many sellers get to this threshold and then become concerned about confidentiality. They do not want the news of their decision to reach their customers, competitors, employees, or creditors. After all, they figure, customers may lose confidence in the business and go elsewhere, competitors might use this opportunity to spread rumors, employees might fear for their future security, and creditors might push for earlier payment. Not all these qualms are reasonable; however, when selling a business, discretion is definitely the better part of valor. Few, if any, transactions have been of confidentiality, on the other hand, can severely alter the course of the transaction. What can you do to protect yourself against this possible deal-wrecker?

Your first step is to look for expert guidance. When a business broker is involved in the sale, he or she will channel the process to keep the transaction within safely silent bounds. You can expect your business intermediary to do the following:

1. Qualify the Buyer
Screening potential buyers is one of the most important benefits a business broker can provide for you. Keep in mind that roughly 90 percent of those who respond to business-for-sale ads are either not serious buyers or are not financially qualified. By screening prospects, the business broker will contribute to confidentiality by limiting the exposure of the business to the most promising buyers instead of the merely curious time-wasters.

2. Use Appropriate Marketing Strategies
How can you advertise a business for sale without spreading the news too far? The business broker, as an intermediary, is an ideal position to do just that. Brokers place advertising and post listings that contain non-specific descriptions of the business. This "blind ad" approach can be phrased to attract interest in the business without revealing its name or exact location.

3. Prepare Paperwork Designed to Promote Confidentiality
After screening prospective buyers and assessing the degree of interest and financial qualification, the business broker will also require prospects to sign a strictly-worded confidentiality agreement.

4. Manage Appropriate Release of Information
Until a purchase-and-sale agreement has been signed, the business broker can phrase the release of information about the business to match the growing evidence of buyer sincerity and trust worthiness However, even with the most careful handling, rumors are unavoidable. The wise seller will expect questions from the curious and will be ready with answers. If you find yourself needing to muffle the business-for-sale buzz, aim for a mix of good sense and good humor. You might respond that many buyers have approached you over the years, making "news" before it happens. You could go on to say that you never refuse to listen to a great offer, adding that you are, in fact, all ears right at the moment!

No matter how close-mouthed sellers choose to be with the community at large, they might consider being open with their own employees. This is the group most likely to sense what's happening, and sharing the news with workers can sometimes be a positive move. Since it's often the unknown that causes the most anxiety, including employees in the decision to sell can actually calm over-active imaginations. Once enlightened, workers can be made to understand the need for discretion. Confidentiality will help protect their own future as well as that of the business.