http://www.whitehurst-ma.com
Dallas, Texas Mergers & Acquisitions | Business Broker
This video addresses the question: "Can you sell a business in today's economy? If you do sell a business, or if I did sell my business in today's economy, would I be able to sell it for the highest justifiable price or would I be having to discount that because things are so uncertain in our economy?"
There are good questions, and they're particularly good questions for today. One of the things that I tell business owners is this: If your numbers are there (that is: your profit; salary; your sales trends are good) your business is going to sell today, just like it would have sold back in 2007, 2006, back in what we now call "the good times."
There's no difference. I'm selling businesses today, as many businesses today, as I did prior to 2009. The difference is there's not as many buyers. There's no question about that. And some business buyers are a little bit more careful than they were before. And also (there's no question about this) banks are very careful in who loans and who doesn't, and not many banks are lending.
But the point is, you can get deals done. The basic saying is this: If a business is throwing off, as we say, "good numbers" to the owner, good cash flow, and it looks like that business has a good future, for which a new owner could come in and make a living, and expand that business; well, that business is sellable in today's economy just like it always has been.
The valuation techniques I'm using, the multiples of value that we use as brokers to determine price, are not changing. They're the same exact number ratios that I used prior to 2009. So, the prices that I determine of businesses is exactly the same. Nothing has changed.
So the main thing is this: A business broker today has to be very meticulous in understanding not only valuation principles and price, but more importantly than even, attention has to be paid to what we call, as brokers, "deal structure." How is that deal going to be paid out over a period of time?
In most cases there are no longer any all-cash deals at closing. That means that the owner is going to get some type of payout for a portion of the sale price of the business. Not a lot, perhaps not a large portion, but a small portion.
And the business broker has to understand banking techniques and methodology, particularly banking techniques and methodology as it applies to 2011, 2012, and on.
The situation is this: You've got to be very meticulous up front (the broker does). The bank has to understand the business and how the deal is structured. And those structures have to be in keeping with what the bank is looking for.
The other thing about the deal, basically, is that the business has to be offered in a very professional manner. The marketing package or memorandum of the business has to be complete and it has to be able to answer all questions that a buyer and the buyer's support group (a CPA, attorney, or his financial consultant and his bank) are going to be looking for.
It takes an experienced business broker to be able to handle this type of deal structure and to be able to offer a business in a very professional manner.
I've been a business broker for 15 years. I've sold over 115 businesses in which I have been the procuring cause of that sale. I have been the broker representing the business owner in selling the company. I've been the broker that found the buyer, and I've been the broker, perhaps more importantly, that has taken the deal all the way to closing.
Yes, you can sell your business, Mr. Business Owner, in today's economic environment. No matter how certain that economic environment is. The small business in America is still the backbone of our economy, and if businesses are still throwing off good numbers (cash flow) and it looks like there's a good future, I can sell that business and I can sell it for maximum value.
For more information, please contact us directly:
Whitehurst Mergers & Acquisitions
9330 LBJ Freeway, Suite 900
Dallas, TX 75243
972.238.0700
Whitehurst Mergers & Acquisitions
Business Broker
Dallas, Texas
http://www.whitehurst-ma.com
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Selling Your Business | Hiring the right business brokerby billwhitehurstdsc89 views
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