Our Marketing Partners…

• BizBuySell – Is the Internet’s most active marketplace for businesses and franchises for sale

• Bizilla – The Simple Way to Buy or Sell a Business

• BizMatch – A Connection Platform for people in Business

•  BizQuest – The Original Business for Sale Website

•  Business Broker Net – A leading marketplace designed to help our users buy or sell a business

• BuyTradeBiz - Businesses for Sale

• Businesses for Sale.com – Businesses for Sale

• BusinessMart – Virginia businesses for sale

• GlobalBX – Find businesses for sale, franchises, business brokers & commercial loans.

General Affiliations…

• ABBA – American Business Brokers Association

• AM&AA – The Alliance of Merger & Acquisition Advisors® (AM&AA) is the premiere International Organization serving the educational and resource needs of the middle market M&A profession.

• Business Evaluation Systems – has been the industry leader in providing Business Appraisals and Machinery & Equipment Appraisals world wide for Intermediaries, Lending Institutions, Attorneys, Accountants and Financial Planners.

• CBVVA – The Carolinas – Virginia Business Brokers Association is a non-profit corporation created to unite those engaged in the sale of business opportunities in North Carolina, South Carolina and Virginia

• Diamond Financial – is your single, nationwide source for franchise, acquisition and expansion loans from $100,000 to $10 million. There are no up front fees and no charge for pre-qualification letters. They know what lenders require and can substantially save you both time and money. With over 84% of business loans initially declined due to presentation, it’s important to have the experts on your side.

• GCFValuation-is a full service valuation firm providing Intermediaries, Banks, Attorneys and their respective clients with business valuation services. The firm and its appraisers belong to the most respected appraisal associations in the country and hold the highest industry designations, making them experts in their field.

• IBBA – The International Business Brokers Association

• Small Business Navigation Program – Providing Your Small Business with the Tools to Succeed

• Siegel Capital – offers small and mid-sized companies, as well as individuals, a better way to secure capital in amounts ranging from $100,000 to $10,000,000 without breaking a sweat.

• The Katsias Company – Advanced Business Brokerage’s Commercial Real Estate Resource

How much is your time worth?

Business owners have a business to run, and they are generally the mainstay of the operation. If they are too busy trying to meet with prospective buyers, answering their questions and getting necessary data to them, the business may play second fiddle. Buyers can be very demanding and ignoring them may not only kill a possible sale, but will also reduce the purchase price. Using the services of a business broker is a great time saver. In addition to all of the other duties they will handle, they will make sure that the owners meet only with qualified prospects and at a time convenient for the owner.

How involved do you need to be?

Some business owners feel that they need to know every detail of a buyer’s visit to the business. They want to be involved in this, and in every other detail of the process. This takes away from running the business. Owners must realize that prospective buyers assume that the business will continue to run successfully during the sales process and through the closing. Micromanaging the sales process takes time from the business. This is another reason to use the services of a business broker. They can handle the details of the selling process, and they will keep sellers informed every step of the way – leaving the owner with the time necessary to run the business. However, they are well aware that it is the seller’s business and that the seller makes the decisions.

Are there any other decision makers?

Sellers sometimes forget that they have a silent partner, or that they put their spouse’s name on the liquor license, or that they sold some stock to their brother-in-law in exchange for some operating capital. These part-owners might very well come out of the woodwork and create issues that can thwart a sale. A silent partner ceases to be silent and expects a much bigger slice of the pie than the seller is willing to give. The answer is for the seller to gather approvals of all the parties in writing prior to going to market.

How important is confidentiality?

This is always an important issue. Leaks can occur. The more active the selling process (which benefits the seller and greatly increases the chance of a higher price), the more likely the word will get out. Sellers should have a back-up plan in case confidentiality is breached. Business brokers are experienced in maintaining confidentiality and can be a big help in this area.

Our firm has over twenty years of combined experience in Business Brokerage. That coupled with a combined 50 plus years of Business experience has positioned us to share experiences that will help potential Business Buyers, and specifically help business owners who are in the process of deciding to sell their business.

Let’s talk for a few moments about the critical issues to think about when selling a business. And let me share some of the difficulties some sellers experienced.

Many Business owners feel they can sell their business themselves. It’s true to some extent, they have the capability. However, there is a striking difference between the sale of a business and the sale of a service or product. First and foremost, the greatest risk owners face centers on confidentially. History has shown us that when an owner attempts a sale the word gets out that the business is for sale. And that element alone can substantially erode the business brand. The risk is great.

Secondly, business owners often don’t recognize that it takes a great deal of time and energy to sell a business. And quite frankly it’s difficult as an owner to separate the emotional component away from the transactional sale.

Third, business owners have difficulty determining market value. Certainly they have a hard time maintaining objectivity. Again, they have the capability, but in reality they are so close to the operation that they cannot look at the value from a true market perspective and from the perspective of a qualified buyer. A Business Broker brings objectivity, market and asset value awareness, and an understanding of the buyer marketplace in general.

So in the final analysis, and based exclusively on experience, we recommend an owner focus on sustaining and growing the brand, growing revenue, and ultimately growing the bottom line. Let a qualified and credentialed business broker do the rest. We are happy to share more of the details and our knowledge base. Look us up at www.advancedbusinessbrokerage.com

Business Brokerage
Business Consulting
Start up Consultation
Mergers and Acquisitions
Commercial Real Estate

We excel in facilitating the sale or purchase of existing Main Street Businesses. Advanced Business Brokerage is comprised of a staff of Experienced Professional Intermediaries. Our purpose is to assist individuals in every aspect of business whether it’s…

Selling a Business
Purchasing a Business
Providing Guidance and Consultation for a start up
Facilitating Corporate growth in the form of a Merger or Acquisition
Or Facilitating the Sale or Acquisition of Commercial Property

(Virginia Beach, VA)  Frank Chebalo, commercial real estate agent / business broker with Advanced Business Brokerage, has received the prestigious International Business Broker Association’s “Certified Business Intermediary” (CBI) designation.

To qualify for the certification, Chebalo had to:

• Successfully complete 64 credit hours of IBBA courses, passing each course exam with a score of at least 75%.  Courses include ethics, financial analysis, business pricing and valuation, legal and tax classes.
• Agree to follow the IBBA’s Code of Ethics and submit personal references.

In addition, Chebalo will be required to participate in continuing professional development activities.

“It is an achievement to receive the certification,” said Pat Appelhans, President of  IBBA.  “It signifies that Chebalo is an accomplished business intermediary who will provide his clients with the highest standards of professional service.”

Chebalo is one of “a few” commercial real estate agents / brokers in Virginia to hold the CBI designation.  “I am honored to be one of a small number of brokers who hold this certification,” said Chebalo.  “It assures my clients that they are dealing with a professional who is knowledgeable about business sales and has their best interests in mind.”

Family Members

Members of the seller’s own family form a traditional category of business buyer: tried but not always “true.” The notion of a family member taking over is amenable to many of the parties involved because they envision continuity, seeing that as a prime advantage. And it can be, given that the family member treats the role as something akin to a hierarchical responsibility. This can mean years of planning and diligent preparation, involving all or many members of the family in deciding who will be the “heir to the throne.” If this has been done, the family member may be the best type of buyer.

Too often, however, the difficulty with the family buyer category lies in the conflicts that may develop. For example, does the family member have sufficient cash to purchase the business? Can the selling family member really leave the business? In too many cases, these and other conflicts result in serious disruption to the business or to the sales transaction. The result, too often, is an “I-told-you-so” situation, where there are too many opinions, but no one is really ever the wiser. An outside buyer eliminates these often insoluble problems.

The key to deciding on a family member as a buyer is threefold: ability, family agreement, and financial worthiness.

Business Competitors

This is a category often overlooked as a source of prospective purchasers. The obvious concern is that competitors will take advantage of the knowledge that the business is for sale by attempting to lure away customers or clients. However, if the business is compatible, a competitor may be willing to “pay the price” to acquire a ready-made means to expand. A business brokerage professional can be of tremendous assistance in dealing with the competitor. They will use confidentiality agreements and will reveal the name of the business only after contacting the seller and qualifying the competitor.

The Foreign Buyer

Many foreigners arrive in the United States with ample funds and a great desire to share in the American Dream. Many also have difficulty obtaining jobs in their previous professions, because of language barriers, licensing, and specific experience. As owners of their own businesses, at least some of these problems can be short-circuited.

These buyers work hard and long and usually are very successful small business owners. However, their business acumen does not necessarily coincide with that of the seller (as would be the case with any inexperienced owner). Again, a business broker professional knows best how to approach these potential problems.

Important to note is that many small business owners think that foreign companies and independent buyers are willing to pay top dollar for the business. In fact, foreign companies are usually interested only in businesses or companies with sales in the millions.

Synergistic Buyers

These are buyers who feel that a particular business would compliment theirs and that combining the two would result in lower costs, new customers, and other advantages. Synergistic buyers are more likely to pay more than other types of buyers, because they can see the results of the purchase. Again, as with the foreign buyer, synergistic buyers seldom look at the small business, but they may find many mid-sized companies that meet their requirements.

Financial Buyers

This category of buyer comes with perhaps the longest list of criteria–and demands. These buyers want maximum leverage, but they also are the right category for the seller who wants to continue to manage his company after it is sold. Most financial buyers offer a lower purchase price than other types, but they do often make provision for what may be important to the seller other than the money–such as selection of key employees, location, and other issues.

For a business to be of interest to a financial buyer, the profits must be sufficient not only to support existing management, but also to provide a return to the owner.

Individual Buyer

When it comes time to sell, most owners of the small to mid-sized business gravitate toward this buyer. Many of these buyers are mature (aged 40 to 60) and have been well-seasoned in the corporate marketplace. Owning a business is a dream, and one many of them can well afford. The key to approaching this kind of buyer is to find out what it is they are really looking for.

The buyer who needs to replace a job is can be an excellent prospect. Although owning a business is more than a job, and the risks involved can frighten this kind of buyer, they do have the “hunger”–and the need. A further advantage is that this category of buyer comes with fewer “strings” and complications than many of the other types.

A Final Note

Sorting out the “right” buyer is best left to the professionals who have the experience necessary to decide who are the best prospects.

• Burnout – This is a major reason, according to industry experts, why owners consider selling their business. The long hours and 7-day workweeks can take their toll. In other cases, the business may just become boring – the challenge gone. Losing interest in one’s business usually indicates that it is time to sell.
• No one to take over – Sons and daughters can be disenchanted with the family business by the time it’s their turn to take over. Family members often wish to move on to their own lives and careers.
• Personal problems – Events such as illness, divorce, and partnership issues do occur and many times force the sale of a company. Unfortunately, one cannot predict such events, and too many times, a forced sale does not bring maximum value. Proper planning and documentation can preclude an emergency sale.
• Cashing-out – Many company owners have much of their personal net worth invested in their business. This can present a lack of liquidity. Other than borrowing against the assets of the business, an owner’s only option is to sell it. They have spent years building, and now it’s time to cash-in.
• Outside pressure – Successful businesses create competition. It may be building to the point where it is easier to join it, than to fight it. A business may be standing still, while larger companies are moving in.
• An offer from “out of the blue” – The business may not even be on the market, but someone or some other company may see an opportunity. An owner answers the telephone and the voice on the other end says, “We would like to buy your company.”

There are obviously many other reasons why businesses are sold. The paramount issue is that they should not be placed on the market if the owner or principals are not convinced it’s time. And consider an old law that says, “The time to prepare to sell is the day you start or take over the business.”