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We help sell businesses for sale and coordinate the entire process between the buyer and the seller. We are honest, ethical and straightforward. We recognize that there is a sense of urgency associated with selling a business and our efficient, effective processes reflect our commitment to that approach.
We have a real estate license and can handle all types of transactions on behalf of our clients. Our commission rate is currently 7% of the purchase price. There are no upfront fees.
Please contact us at 214-616-6180 or info@mbabroker.com for more information. We enjoy our business and look forward to working with sellers and buyers alike
Sellers are typically concerned about confidentiality, pricing and length of the process. MBA Business Broker's process is designed to maximize buyer interest in a confidential manner, while minimizing the amount of work and disruption for the seller. The process of selling a business listed with us includes the following steps:
1. We know what qualified buyers are looking for and we take the time to extract the relevant information about your business for sale. Our approach is fact based. We use the facts about the business for sale to create interest in qualified buyers. Qualified buyers are experienced business people with sufficient incomes and cash reserves that enable them to purchase a business for sale. Qualified buyers respond well to a fact based approach. Therefore, MBA Business Brokers has a comprehensive method for gathering as much information about a business as possible, supported by evidence. We effectively organize the business information to make the best presentation of the most important information to interested buyers as quickly as possible. This means that we do not begin advertising the business until we have a complete "package" of information to share with qualified buyers. Since there are so many businesses for sale, MBA Business Brokers makes a strong effort to respond to qualified buyers quickly with comprehensive information. This goes a long way to creating the momentum necessary to sell a business quickly.
2. We advertise the business for sale extensively in various online and offline media. Selling a business is a numbers game and lining up as many interested buyers as possible is necessary to maximizing value and selling the business quickly. Most businesses for sale have an appeal within an industry and to the general buyer community. MBA Business Brokers evaluate the business, based on our experience, and identify specific buyer targets as well as promote the business through general advertising.
3. We qualify interested buyers to determine their ability to purchase and run your business for sale. This process includes determining their level of personal and/or business financial status to support the purchase of the business for sale. We have relationships with several major SBA and non-SBA lenders. We understand their requirements and can either route qualified buyer to their attention for pre-qualification or discourage unqualified buyers from looking at your business for sale further. In addition to evaluating the financial criteria, we examine the potential buyer's background and goals. Not every business for sale is suitable for every qualified buyer. If it is obvious to us that a particular buyer's abilities and criteria do not align with the business for sale, we will discourage the buyer from looking further. Generally, incompatible buyers will drop out the process eventually. MBA Business Brokers looks to disqualify incompatible buyers before they waste any time.
4. Under protection of a Confidentiality Agreement, we provide as much information to qualified buyers prior to a site visit as possible. This includes financials, pictures of the site, pictures of the products, asset listings, business processes etc. Normally, qualified and knowledgeable buyers will do extensive research of the industry and this material before spending the time to visit your business for sale. We encourage buyers of retail businesses to survey the seller's site on their own as a customer. We collect the buyer's feedback about your business for sale throughout the process. If the buyer remains interested we will arrange a site visit with the owner of the business for sale.
5. Generally, there are relatively few site visits. Most interested buyers do not qualify to purchase the business for sale. Others do not have the interest or the industry experience to effectively manage the business for sale. While we may receive several hundred initial interested buyers, MBA Business Brokers will narrow the qualified buyers down to a few highly qualified, highly interested, highly compatible candidates. At this point the owner of the business for sale takes an active role in selling the business. During the site visit, the potential buyers will look to validate everything they have learned on their own about the business for sale and the industry. The owner's candid explanations will go a long way towards helping the potential buyer overcome any remaining concerns or issues.
6. Typically, potential buyers will walk away from the meeting prepared to make an offer or dismiss the opportunity. MBA Business Brokers will provide a draft contract to the buyer for review. The draft contract will contain all the requirements and terms that the seller and the broker deem necessary to complete the sale of the business. In addition to pricing, payment schedules, loan assumptions and other critical financial terms, the contract will also include a timeline for specific sale related activities. Closing the sale of a business usually involves several steps and requires both buyer and seller to take actions. Buyer activities may include arranging financing. Often times, this means that the seller must provide additional details or documents to the buyer's. For franchise operations, this may include arranging an ownership transfer with the local development agent. For businesses that include property, this means doing lien searches, etc. MBA Business Brokers defines and manages the coordination of all these activities and associates a timeframe with each of these activities in advance in the contract. These activities and an associated timeframes are imbedded into the contract.
7. MBA Business Brokers will arrange a meeting between the buyer and seller. Both the buyer and the seller will have received and reviewed a copy of the contract before the meeting. During this meeting, MBA Business Brokers serves as a mediator between the buyer and seller, as they work through any issues with the presented terms. The changes are made to the contract during the meeting. Both buyer and seller sign the contract and the buyer submits a deposit into escrow. The deposit amount is typically 10 percent of the purchase price and is deposited into an escrow account.
8. Buyer and Seller begin their business sale related activities and MBA Business Broker coordinates information and documentation. Often times, MBA Business Brokers will interact with the lenders and other related parties to keep the process on track. The timeline in the contract becomes important here, because it keeps both buyer and seller focused on the details required to complete the transaction in a timely fashion. If sellers drag their feet, then they risk letting the buyer off the hook and lose the sale. If buyers drag their feet, then they risk forfeiture of the deposit.
9. Finally, closing day arrives for the business for sale. MBA Business Broker arranges the closing and makes available closing attorneys. All related parties meet and exchange title for money. All relevant documents are signed and notarized, supervised by closing attorneys. If the buyer and seller have independent counsel, they will be involved as well.
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