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THIS PAGE WILL HELP YOU UNDERSTAND THE BUSINESS BROKERING INDUSTRY AND WHAT 24-SEVEN BUSINESS BROKER WILL DO FOR YOU.
Q. WHY DO SO MANY BUYERS SEEK OUT 24-SEVEN BUSINESS BROKERS?
A. Many accountants, consultants, lawyers, independent buyers and others are always informing us of the types of businesses they need either for themselves or for their clients. They come to 24-Seven Business Brokers because they know the quality of our business broker work and the fact that we are selective in our representations. They know that they will not be wasting their time.
Q. WHY SHOULD I USE A BUSINESS BROKER?
A. Professional business broker can be helpful in many ways. Business Brokers provide you with a selection of different and, in many cases, unique businesses, including many that you would not be able to find on your own. Approximately 90 percent of those who buy businesses end up with something completely different from the business that they first inquired about. At 24-Seven Business Broker, our Business Brokers can offer you a wide variety of businesses to look at and consider.
Business brokers are also an excellent source of information about small business and the business buying process. Our Business Brokers are familiar with the market and can advise you about trends, pricing and what is happening locally. A 24-Seven Business Broker will handle all of the details of the business sale and will do everything possible to guide you in the right direction, including, if necessary, consulting other professionals who may be able to assist you.
Q: WHAT IS INVOLVED IN WORKING WITH A 24-SEVEN BUSINESS BROKER?
A. Our Business brokers represent our client. Clients can be business owners wishing to sell their business, individuals, private investment groups, or corporations looking to buy a business. Completion and signature of an Engagement Agreement or Letter of Authorisation is required to become a client. Once you, your company or your investment group are clients of Business 24-Seven Business Brokers, we work to find the transaction that best meets your goals and objectives.
Q: WHAT ARE THE FEES ASSOCIATED WITH BUYING AND SELLING A BUSINESS?
A: Our fees are directly related to the value of the business purchased or sold. Our fees are paid by our client (buyer or seller). Our fees are based on a percentage of the selling price and are earned when your business is sold If we don't perform, it doesn't cost you anything. All our Business Brokers at 24-Seven Business Broker work on a commission basis. If we don't sell your business then we don't get paid. A copy of our fee schedule is available to our potential clients.
Q: DO 24-SEVEN BUSINESS BROKER CHARGE AN UP-FRONT FEE?
A: We have had several clients who have complained that they were charged up-front fees. If you are buying or selling a business, our business brokers are not allowed to charge an up-front fee.
Q: HOW LONG DOES IT TAKE TO SELL A BUSINESS?
A: There is a great deal of variation in the time frame, but the average time to sell a small business is approximately 6-12 months from listing-to-close. In over 70 percent of the time, a business is sold in less than nine months! However due to the current economic climate, businesses may take slightly longer.
Q. WHAT ARE THE MINIMUM REQUIREMENTS FOR THE SALE OF A BUSINESS?
A. The lack of properly maintained records is one of the more common reasons for an unsuccessful sale of a business. The minimum requirements for the sale of a Business as prescribed by our business brokers is:
- Financial statements for last 3 years
- Copies of Income Tax Returns for the last 3 years
- Copies of VAT Returns for last 12 months
- The Lease Agreement in respect of the premises
- The Fixed Assets register
- A copy of the Franchise agreement, if applicable.
- Working Capital requirements
- A mandate to sell the business
- Copies of loan agreements against the business and the latest statement from the loan creditor for each month.
- However, we are accustomed to working with businesses with less than ideal records.
Q: WHY DO OWNERS SELL THEIR BUSINESSES?
A: the most common reasons for selling a business that we have encountered?
- Retirement
- Wanting to move to a bigger business.
- Wanting to move to a different geographic area.
- Burned out because of hours of work or the number of years running the business.
- Owners death or death of family member.
- Divorce.
- Litigation
- Bored. Wants to get involved in something else that he/she feels will give more meaning to his/her life.
Q: WHAT CAN I DO TO HELP SELL MY BUSINESS?
A: As we begin the process of selling your business, there are certain things you can do to help us.
Keep normal working hours.
Make sure your financial records are an accurate reflection of revenues and business only expenses.
Conduct business as usual.Do not let inventory levels dip below normal.
Keep the business facilities clean and in good repair.
Remove equipment or furniture that is not part of the sale.
Provide us with required information in a timely manner.
Be as accommodating as possible in setting appointments to meet with buyers.
Q. DO YOU “CO-BROKER” OR WORK WITH OTHER BUSINESS BROKERS TO SELL YOUR LISTINGS?
A. Yes. After taking appropriate measures to protect our client's confidentiality, we will work with any professional business broker if they have a qualified buyer for one of our listings. We believe that brokers who do not work with other professional brokers are putting their clients at a serious disadvantage by minimising the exposure to other potentially qualified buyers in the market place.
BUSINESS VALUATION
Q. DO YOU PROVIDE BUSINESS VALUATION?
A. Valuing a Business can be complex and is dependent upon many factors. Our services range from the free Broker's Appraises Report to a formal Business Valuation Report. We can assist you by offering our “Broker's Appraises Report”, or we can arrange for a formal Business Valuation Report based upon your individual needs. These are extensive and detailed reports which should help you with the decision to sell or not at this time, but also justify the offering price to prospective buyers if and when you do choose to go to market.
Q: WHAT IS MY COMPANY WORTH?
A: Determining the value of your business is one of the first steps in selling your business. There are many factors to consider such as cash flow, asset values, financial history, condition of equipment, lease terms, competition, location, and the economy. We have access to comparable businesses that have recently sold so we can value your business and establish an appropriate price
Q: WHAT DOES A BUSINESS VALUATION COST?
A: Our fees start at R3,600, while other valuation reports are priced according to the amount of work involved to prepare them. We will quote your business an exact cost at the beginning of the project.
Q: HOW LONG DOES IT TAKE?
A: Depending on the valuation report – the following are estimated times:
Broker's Appraises Report 1 Week
Formal Business Valuation Report 2 - 6 Weeks
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