How IAG Solves the Problems of Selling a Business
When selling a business, owners face five problems:
- Finding qualified buyers,
- Keeping the sale confidential,
- Justifying the asking price,
- Maintaining the business, and
- Getting the sale closed.
IAG has Buyers
Due to worldwide advertising and an excellent reputation, IAG has a ready pool of thousands of buyers. IAG only contacts the types of businesses for which they have qualified buyers.
Other Methods of Finding Buyers
Advertising in local papers will only cost you a few hundred dollars a week. The problem is local buyers typically won’t pay full value. To get the best price, you need to advertise nationally, sometimes internationally. Placing an ad the size of a business card in the top ten national newspapers costs many thousands of dollars a day. Business owners can't afford to do this. Even if you use the Internet, and they can find your ad in cyberspace, it still takes a lot of time to screen and qualify respondents, then prepare and send out a professional portfolio, arrange a meeting and close the deal. Before IAG, the only way to get this done was to use a local business broker or Realtor. Most will do very little, if any, advertising. They locate buyers through networking, which may mean contacting competitors of the business being sold, and placing the business in a multiple listing service. They all want to put a "For Sale" sign in the window. "How can I sell businesses without telling anybody?" they ask.
Advertising personally, using a local business broker or Realtor is not the way to keep an offer confidential. IAG does not broadcast the fact your business is for sale. IAG guarantees confidentiality by only contacting the types of businesses for which they already have buyers. Each buyer signs a confidentiality and nondisclosure agreement. Nothing is ever disclosed about your business without your knowledge and consent. Only qualified buyers are given access to IAG’s pool of sellers. They view a professional business portfolio with color photographs and a description of important points about each business.
Justifying the Price
Overpricing is the biggest reason a business takes a long time to sell. However, when finally sold, according to the SBA, four out of five receive far less than fair market value. This happens because owners do not know how to get a proper business valuation performed to defend their price. A well prepared valuation is generally the best ammunition a seller has for negotiating a fair price for their business. For many family owned businesses and sole proprietorship's this can be the only compensation they have for a lifetime of work. Typically, buyers don’t pay all cash, they leverage their money to purchase as big a business as possible, therefore valuations are essential for a bank, or other institution, to defend a lending decision as sound. A written business valuation illustrates to the buyer what an independent third party has determined the business is worth. It depends on key business ratios, risk factors and individual industry norms and standards. IAG's business analyst does the on-site inspection, gathers background information and the financial statements. In order to provide sellers with a comprehensive, impartial, professional business valuation, IAG contracts third party independent firms with years of experience. All valuations meet Society of Business Analysts' and American Society of Appraisers’ standards.
Maintaining the Business
Constant work interruptions are annoying, time consuming and are extremely costly to the financial health and stability of your business. Advertising on your own, using a local business broker or Realtor, opens a "Pandora's Box" of unfruitful inquires and time wasters. Not only is this a counterproductive waste of resources, it can also damage your business. IAG handles all initial inquiries to weed out curiosity seekers, solicitors and “tire kickers” and assigns you a professional transaction specialist to help facilitate the sale. His job is to answer all questions, solve all problems and minimize the time spent in negotiations.
Getting it Closed
IAG prepares and aids you and the potential buyer in all aspects of the transaction. When a buyer is ready, willing and able to buy, you are provided with information about your buyer. Then your transaction specialist makes arrangements with both parties to pursue their intentions further.