January 11, 2018

Justifiable Pricing

Pricing Your Business

As a professional service to each of my Sellers, I offer CVA One, Adviser One’s proprietary Company Value Analysis which is my experience-proven approach to determine the market asking price of your business in the current marketplace. I price businesses to sell for optimum value. This means selecting a realistic price range based on market value while at the same time, assessing the unique aspects of your Company that may add additional value to the equation. Once your business is properly marketed, the buyer marketplace will ultimately determine the fair market value of your business. However, if you overprice, the business will not receive the positive exposure it needs to expedite a sale. Accurate pricing adds important momentum to the sale process to help you sell in an acceptable amount of time and with the best terms. Having a professional business appraisal in hand when it comes time to negotiate establishes a value that is fair and justifiable. Should a buyer decide to hire an independent appraiser during negotiations, the results will often closely correlate to our appraisals due to the professional rigor and consistency of our work.

Confidential Investment Memorandum

The way your business is presented to prospective buyers is extremely important. First impressions tell a story about your business—it’s quality, financial stability and future opportunities for growth. Most main street “business broker packages” are loosely assembled financials, tax returns and other hastily gathered information. Would you be seriously interested in a business without having any significant background information about the business? Adviser One’s marketing strategy is different. Based on your needs, Adviser One sellers receive a professionally designed Confidential Investment Memorandum (CIM) in print and in e-package format. The Confidential Investment Memorandum is an executive level presentation tool covering every major aspect of your business. We include tables on financial history and year-to-date performance, deal information, business activity and history, marketing strategy, operations, employees, assets, facilities, a photo library and other important decision-making data. This tool presents your business as a quality enterprise worthy of serious consideration. The Confidential Investment Memorandum is only given to qualified prospects who have signed the Confidentiality Agreement.

Financing the Sale

Financing the deal is one of the most critical aspects in getting the deal done. I help match SBA lenders with sellers to expedite the transaction and create a smooth working relationship between all parties. I assist the lender with key background information they need to understand the company’s present and future performance, and work diligently to bring the financing to a successful conclusion. Some sellers prefer seller financing as the deal gets done quicker and with less concern about the business qualifying for financing. In fact, the SBA and lender may require the seller to hold a note for part of the purchase price to insure their continued participation in the business.

Step Three: Target Marketing