1. If these businesses are so great, how come you don't buy them?

Actually, we are on the lookout for businesses for sale to buy. Like most buyers, we have some very specific criteria for what we are interested in. Most businesses for sale we represent don't meet our criteria. Specifically, we are interested in buying businesses that collect, process and distribute information. In the event that we see a business for sale that fits this profile and meets our financial requirements, we will likely buy it. Otherwise, we are more interested in locating a buyer whose criteria more closely aligns with our listed businesses for sale.

2. Can you sell real estate?

Everyone in the firm has a real estate license and most of us have real estate investments. As a result, we are effective in handling all transactions on behalf of our sellers. Many of the businesses we represent include real property, including land and buildings.

3. How do you price these businesses for sale?

Generally, we look to price businesses in two ways. The overriding principle is that businesses are priced based on what the market will bear. We pay attention to what else is available in the marketplace and price accordingly. Fundamentally, businesses are priced at a multiple of earnings or based on the value of the assets. The multiples vary based on the type of the business and the acceptance in the marketplace. The asset value is typically market value of the assets that comprise the business.

4. Do all businesses for sale have good financial records?

Not all businesses for sale have good financial records. Buyers look for different criteria in evaluating businesses for sale. We break businesses into two categories. There are documented and undocumented businesses for sale. Documented businesses for sale keep good books and records and pay taxes on their earnings. The tax returns match their internal financials. Undocumented businesses for sale have nothing more than sales logs and conduct most of their transactions in cash. Their tax returns do not reflect the business activity and some businesses for sale are completely outside the tax system. There are methods to validating the performance of both types of businesses for sale. Obviously, undocumented businesses for sale typically sell for the value of the assets alone and documented businesses sell at a multiple of earnings. Undocumented businesses for sale tend to garner a lower price in the marketplace because of the lack of documentation.

5. How long does it take to sell a business for sale?

Generally, business for sale buyers come in two flavors. There are those buyers that are already actively looking and there are those buyers who are just entering into the marketplace to search. When a business first lists for sale, those buyers that are actively looking will spot the new listing immediately. As a result, there is a lot of activity around a new listing. If MBA Business Brokers does their job properly then we will respond will comprehensive information very quickly after that buyer signs a confidentiality agreement. This is why we insist on gathering all the information possible upfront before advertising the listing. Generally, the actively looking buyers pounce on new listings. They want immediate answers to a whole host of questions that they have organized as they have looked at other businesses for sale. These buyers represent the best opportunity to sell a business for sale quickly. In the event that this new business for sale does not meet their criteria then the business for sale will attract new buyers coming into the market over time. New buyers may have different criteria than already actively searching buyers. However, dealing with new buyers may take longer because they come into the market over time. MBA Business Brokers will take proactive steps to located potential buyers that may not be actively looking, but would be interested in the opportunity to purchase a business for sale as well. This proactive approach also takes more time. MBA Business Brokers generally looks to sell every listing within 6 months.