Professional Business Brokerage Services for Small Businesses
Professional Business Brokerage Services for Small Businesses
Selling a business can be a complex process that requires significant forethought and experience. Whether the process is profitable or not will depend on the timing of the sale, the strength of business operations and financial performance, and the success found during negotiations. A business broker facilitates the sale of a business from start to finish so that owners can focus on what is most important – running the business itself.
However, experienced business brokers that deliver value and prioritize confidentiality specifically for small to medium sized businesses are hard to come by. After hundreds of transactions and over 40 years of combined experience, Beacon’s business brokers understand these main street businesses better than anyone.
What Services do Business Brokerages Provide?
Step 1: Valuing the Business
The most important aspect of selling a business and the first thing a business broker will do is determine the fair market value of the business for sale. To do this, a thorough analysis of historical and year-to-date financial statements is conducted. The broker will enter into discussions with management about all operational, marketing, or legal factors that impact the cash flow and risk profile of the company to further support the accuracy of the valuation. Once this is done, the broker will suggest an appropriate selling range to the seller and highlight any shortfalls that may affect a sale.
Beacon utilizes sophisticated and innovative methods to analyze the company’s financial and operations data to provide clients not only with valuation and pricing expectations but also recommendations on steps to enhance their value proposition. Valuation analysts and Chartered Business Valuators (CBV) at Beacon are members of the Canadian Institute of Chartered Business Valuators (CICBV) – they provide clients with comprehensive Broker Opinion of Value reports and Certified Business Valuations.
Step 2: Marketing the Business for Sale
Once the valuation is complete, business brokers start to market the opportunity for sale. Prospective buyers are given a Confidential Investment Memorandum (CIM) – a document prepared by the business broker to provide an in-depth understanding of the company’s operations, competitive advantages, financial health. At this stage, the broker will ensure that news of the sale remains confidential so that staff, customers, and suppliers find out only when the seller is ready.
Confidentiality is at the heart of each transaction and considered at every step of Beacon’s process – secure and encrypted data rooms are used to store client information and the latest technology is employed so that business owners can continue to operate while the opportunity is being marketed discreetly. Moreover, Beacon leverages its established network of business owners, high net worth individuals, corporations, institutional investors, and other industry professionals within Ontario to pick the right buyer for each business.
Step 3: Negotiating the Sale of the Business
A seasoned business broker can weed out the “tire kickers” from motivated buyers with financial backing who are well-suited to run the business. During this step, the broker will make introductions between the prospective buyer and seller, assist in the preparation of due diligence materials, and negotiate deal terms that best fit the seller’s requirements.
Business brokers that work with Beacon are particularly skilled at screening potential targets to a level where zero time is wasted in discussions with the wrong group. After receiving multiple Letters of Intent (LOI) and signed Non-Disclosure Agreements (NDA’s), our team pinpoints the best buyer for the business as quickly as possible. When it comes time to close the deal, there is little left to negotiate except for transition, timing, and price.
The Advantages of Using a Business Broker to Sell your Business
Pricing the Business to Sell
An expert business broker can help you with getting the best price. Business brokers keep up with what is happening in the market continuously. What’s more is that they have access to resources that you may not – for example, data on precedent transactions in the same industry with similar revenues. If the business is valued too high, most buyers will not even bother inquiring. On the other hand, if the business is priced too low, you will not get the full amount your business is worth.
Saving your Valuable Time
Business owners are masters of their craft, having an expert level of knowledge of their industry and the business they are looking to sell. However, many lack an understanding of the sales process, and even if well acquainted, lack the time and manpower needed to efficiently complete the sale of their business. Our industry is selling businesses, and we are experts in the sales process; we can easily take on the stress and work needed to sell a business so that owners can continue running operations hassle-free.
As part of our business brokerage services, we walk you through everything you will need to sell your business, from the necessary paperwork to the articles of incorporation, to accountant-prepared financial statements, premises leases, contracts, and governmental licenses. We organize the information, create effective marketing materials, and work with buyers without you having to lift a finger. As business brokers, we are here to give you peace of mind.
Professionally Preparing Marketing Material
Business brokers create effective presentation packages to help buyers fully understand the benefits of acquiring. Within these presentations, the broker will often provide normalized income statements (with clear explanations) to accurately communicate the true profitability of the business. All marketing material created is shared only with prospective buyers, and is otherwise entirely confidential.
Leveraging a Network for Maximum Exposure
An experienced business broker has a long list of buyer candidates. From business owners to high-net-worth individuals, corporations, institutional investors, and other industry professionals, a broker’s network of connections are vast. In fact, they may be able to reach out to interested buyers directly and simplify the process while increasing your chance of receiving multiple LOI’s.
About Beacon Advisors
At Beacon Advisors, we provide our clients with a full suite of intermediary brokerage services. We are with you through every step of the process, from initial valuation to final negotiations – providing you with personalized business brokerage services, backed by resources only found at large investment banks. We act as a business intermediary and assist with selling and buying businesses in Toronto, GTA, Quebec, and the States. We work with small and medium-sized companies with revenue between $1 million and $50 million. Contact us today to let us know how we can help.