Information for Business Sellers

You Want to Sell?
Vincent & Associates, Inc. represents business owners who want to sell their business. We give them an advantage because we know how hard it is to sell a business, and have sold many. We recast financial statements to determine the Discretionary Cash Flow of the business. This process measures the ability of the basic business to generate net cash flow, one of the most important criteria in determining the Fair Market Value of the business. 

Business Valuation 
We strongly recommend that sellers get an independent third party assessment of the Fair Market Value (FMV) of the business. the one we recommend has worked well with us for a number of years, and has built a large data base of closed transactions on which to base their valuations. Such a document by an established, reputable firm is an excellent way to deal with "low ball" offers. It gives you confidence that you are not leaving money on the table. When your asking price is above FMV, the price discourages buyers, and they will go on to another offering. 

Buyers Screens  
Prospective buyers are screened to ensure that they have (both) the business, training, and the financial resources to acquire and run the business. Where appropriate we get preliminary lender approval of companies and buyers, to reduce the time and uncertainty that otherwise will delay the closing. 

Listing Blind Profile
We list sellers using a blind profile to protect confidentiality, on a total of as many as six web sites. Vincent & Associates, Inc. is a six year affiliate of the BBN network of over 450 business brokers. We routinely co-broker with members of the network, and selectively with non-members. These measures maximize exposure to qualified buyers. 

Confidential Offering Memorandum
This document is a comprehensive description of the business offered for sale. It includes at least three years of historical income statements and balance sheets, together with other financial and operating data as appropriate. It is given to a qualified buyer on signing a confidentiality and warranty agreement, and usually is the key document in the transaction. It forms the basis for negotiation of price or terms, and is preliminary to due diligence investigation by the purchaser, and Letter of Intent. 

Anticipate Problems
Since a deal is not accomplished until the parties sign documents and checks change hands at the closing table, we take measures to promote good communication and understanding as the deal progresses. We use many standard documents that have been used successfully over a period of years, recognize common sources of problems, and attempt to anticipate and deal with them early on, to avoid unpleasant surprises at closing. 

Closing Attorney
Finally, we recommend the use of a closing escrow attorney who is qualified and experienced in both real estate and business transfer closings. The one we use can draft purchase and sale documents that are fair to both parties, making it unnecessary for you to finance a battle of wits between two expensive attorneys. 

We have provided you here a summary of the specific measures that an experienced professional broker such as Vincent & Associates, Inc., uses to move your transaction smoothly to a successful closing that realizes your exit strategy.