This is a company or individual that assists a business owner in selling their business. The process may also work in reverse, where a business broker helps locate a business for company or individual to buy.
A business broker has experience in business and financial analysis, salesmanship, and possibly background in a specialty, such as GM Consultants has in the towing business.
This is the value assessed to a company after analysis. It may become the asking price or at least provides guidance as to the asking price.
The sales price of a company is either based on the value of the assets plus some goodwill (blue sky) or based on adjusted earnings times a multiple.
Companies that have strong earnings are many times sold on the basis of their adjusted earnings times a factor (or a multiple). As an example, if a company’s adjusted earnings was $2 million, the multiplier might be 4 to 5, depending on the industry. This is a general rule of thumb only. If the multiple were judged to be 4, then the value of the company would be $2 million x 4 = $8 million, and all assets would be included in that price. If that price was lower than the asset value, then the asset sale approach would apply. GM Consultants can explain in more detail.
This is the profit made by a company, with credit for expenses that you’ve incurred but would not need to be incurred by the buyer. Buyers are typically consistent as to what expense they will accept as being added back to the net income reported on your taxes. This is an important component of the work that GM Consultants does for their clients.
In a simple conversation in which you state your objectives is a great start. From here, we can see if we have common ground.
There are consulting services discussed in the Services section of this site. If our job is to sell your company, or find company for you to buy, we’ll negotiate a success fee percentage (commission) and a modest retainer so that you have some “skin in the game”, which will be credited to you upon the sale or purchase.
Retirement, health, personal issues, moving on, or just capitalizing on their good works are some of the main reasons. Sellers can be selling out of a position of strength or weakness.