Why use a Business Broker?
MarketPoint Associates brings a high level of expertise and professionalism to the process of acquiring or selling businesses and / or investment real estate. In addition to the experienced counseling and advice while navigating the long list of activities and details involved with buying and selling businesses and real estate, a broker will provide assistance in aspects that you are unable to do yourself.
- MarketPoint Associates, through their brokerage network will be aware of unique businesses and properties that are available privately, but not offered to the general market.
- As either buyer or seller, you will appreciate the need to maintain a positive relationship during the entire transaction and eventual ownership transition. You will appreciate that MarketPoint Associates can serve as an important neutral liaison . . . especially when the message to be delivered is not positive.
- Through their trusted network of professional advisors, MarketPoint Associates can provide access to knowledgeable legal, financial, funding, and tax planning resources to mention a few.
MarketPoint Associates fully appreciates that maintaining strict confidentiality through the entire process is of utmost importance and that we are most successful when we build a relationship with our clients rather than just provide a service.
Selling Your Business
As a business owner, you have likely been considering appropriate exit strategies since you began your business. If selling is your chosen strategy and you feel it is time to consider that step, you will have many things to consider. MarketPoint Associates will bring resources and help guide you through the process. You will need to consider:
- Timing of the sale and avoiding ethical and legal pitfalls
- Pricing your business to attract buyers while maximizing the return to you
- Navigating the entire process from, marketing the business, identifying and negotiating with qualified buyers, structuring and completing all the necessary documentation, managing due-diligence, structuring the most effect deal, defining and satisfying the conditions to close, and managing the ownership transition
- Various deal alternatives and the short term and long term tax implications.
The stakes in the transaction are too high to proceed without competent representation and MarketPoint Associates stands ready to competently manage those details while you concentrate on running your business to maintain the highest value.
Buying a Business
Every year, thousands of people consider entrepreneurship. The two options are either to buy an existing business or start one from scratch. Each path has advantages and disadvantages, but experts generally agree that paying the extra cost for an existing business will outweigh the risks of starting one from scratch. Starting your own business can be very rewarding, but
- You need a unique product, technology, or service
- You will have no Goodwill to pay for, but obtaining financing may be very difficult and you will need to support yourself (and family) from personal savings.
- The chances of survival of a start-up business is low – a 75% failure rate according to the Bureau of Labor Statistics.
Buying an existing business may be more efficient, but is frequently more costly.
- With Goodwill including an existing customer base, relationships with suppliers, an operating process, a known location, employees that are hired and trained, assets, and a proven idea, owners will expect a premium
- Existing businesses can normally obtain financing from financial institutions and a seller will quite often provide a portion of the financing.
- There is an existing cash flow which can provide immediate income for debt service as well as owner’s compensation.
- Flexibility in negotiating the purchase is a valuable advantage. Negotiation not only involves the ultimate price, but structuring the deal through creative financing and acquisition terms that can put the buyer at a tremendous advantage when compared to a start-up or new franchise.
MarketPoint Associates stands ready with years of experience to help you find the right business and create a valuable acquisition strategy.
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