If you answered no to one or more of these questions then we recommend you have these documents ready before proceeding to selling your business. The lone exception would be the Profit & Loss statement. While a P&L is encouraged, the tax returns would suffice.

The Buyer Checklist...
Do you have the following?

• Experience in the industry of choice
• A minimum 20% down payment on the price you have in mind?
• Decent to great credit (IE: established credit with no active bankruptcies or collection accounts)

If you answered no to one or more of these questions then you will have to readjust your thinking and developmental systems. These same guidelines do not apply to new franchise development.

Q&A from past sellers
These are real questions and objections we have received. 
-Scott Radin

Prospect: How much do you charge up front to take the listing?
ASR/BSN: Absolutely nothing! We believe in earning our commission. We invest our own money into the advertising and resources necessary to generate qualified buyers. While other brokers use retainers and listing fees as a revenue source we only get paid if the business sells. Let us ask you then-who do you think would be more motivated to get your business sold?

Prospect: How do you keep the process confidential
ASR/BSN: We simply do not divulge specifics that may allow a potential buyer to identify the listing as being you. Whether it's advertising, marketing or talking to our buyers-they know nothing except a very general description until we've qualified them then they've signed a Non-Disclosure and Memo Record of Showing. An example of our discreet advertising/marketing would be Well established construction company in the north towns. Contact us for more details. But anyone contacting us needs to get qualified then sign the confidentiality agreements. If they insist on knowing more we simply read them the above advertisement...NO EXCEPTIONS! We might get 50 phone calls for this listing but only qualify 3-5 for Non-Disclosure..

Prospect: There are no buyers for businesses
ASR/BSN: You could not be further from the truth. National studies show that there are 10 buyers for every business for sale. What owners like yourself don't realize is that the largest group of buyers come from other owners like yourself. The average business sales professional has over 200 buyers looking for businesses. It's funny because when we train new business sales agents they share the same concern as you then ALL of them experience the buyer stampede.

Prospect: I showed a $4,000 loss last year. My business is worth nothing
ASR/BSN: This is a common misconception. Let's face it-nobody is in business to pay taxes. You see, our marketable pricing methods are based on your company's actual cash flow-not bottom line on a tax return or future earnings. As an example we recently sold a company that had a -$7,083 profit/loss but sold for $253,000! This scenario of loss to value happens almost every time we do a detailed price model.

Prospect: My company financials are between me, my accountant and the IRS
ASR/BSN: We understand then have the accountant or IRS sell your business. Unfortunately they can't. You see, as previously mentioned herein, our marketable pricing methods are based on your company's actual cash flow-not bottom line on a tax return or future earnings. As an example we recently sold a company that had a -$7,083 profit/loss but sold for $253,000! All financials are kept in strict privacy under agreements that carry a hefty price should details of said financials be disclosed to anyone other than the qualified buyer or agent that has agreed in writing to not disclose said financials.

Prospect: I will never get the value and price that I want
ASR/BSN: That's a very common concern. But how do you know? This is where our ethical practices are most evident. We will spend time determining a marketable price range BEFORE an agreement is entered into. We dedicate our time and costs to this procedure to determine if our asking price range meets what you perceive as "value". We do this so both parties are comfortable with an asking price. Have we walked away from deals that would not benefit both parties? Yes, it's not fair to you if we took a listing we knew would not sell.

Prospect: Why should I pay a commission when I can do it myself?
ASR/BSN: Understandable but let us pose a question. If you put a For Sale sign on your front door for the next 5-6 months how would it affect the value of your business? What would happen to your customer base? What would happen to your employee status and morale? What would your creditors, suppliers and even landlord think? This example is exactly what you do if you advertise it yourself or contract a commercial real estate agent to do it for you. The fact and figures prove this. Studies of For Sale By Owners show a 30% decrease in marketable value over a period of 6 months. Our commissions are much less than 30%. In addition we earn this commission. We are meeting with and qualifying buyers daily. We are investing our own money into advertising and maintaining the listing. Note: For security purposes we do no publish commission rates online.

Prospect: Do I need to hold a note to the new buyer of my business?
ASR/BSN: No, you do not have to but your buyer pool will be much smaller. We advise all sellers that the likelihood and time frame of selling is greatly increased when you are willing to hold the note balance. There are also tax and savings benefits to doing it this way-not to mention the increased revenue from the 6% or so interest rate. In addition, we have sources in our network that will buy your note from you should you decide to sell it. 

Prospect: I am interested in buying but do I get to look at the company financials before agreeing to buy?
ASR/BSN: Yes, it's the first set of documents you will review after entering into the non-disclosure and privacy agreements. Based on the financials you will then determine if you wish to visit the business at a time agreeable to the owner. These initial agreements do not commit you to the listing rather they prevent you from discussing the listing with anyone else. We have never had a buyer refuse to sign these privacy agreements.

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