1Why should I use a Business Broker?

Selling or buying a business is one of the most important financial decisions you will make. A Business Broker has the training and expertise to guide you through the process in a comfortable and efficient manner. He is a team player who will coordinate the efforts of your professional advisors, such as attorneys and accountants. He has handled many transactions and understands the complexities of selling and buying a business.

During the process, the Seller's job is to do what he does best, which is to run the business as if he were going to keep it. The Broker's job is to confidentially market the business, find and screen the Buyers, educate them, negotiate the terms of the sale and provide a buffer for the emotional highs and lows that we all experience. The Buyer benefits because the Broker has already pre-qualified a business before he lists it. He has psychologically prepared the Seller for the sale. He has also done a lot of the legwork to assemble the financial information and background of the business. This helps to reduce some of the uncertainty for the Buyer and make this search more efficient.

2How do you handle confidentiality?

We require that a prospective Buyer review and sign a non-disclosure statement outlining his responsibility in having access to a Seller's confidential information. This occurs before any detailed information concerning a specific opportunity is released. We are committed to protecting the confidentiality of the business sale. We understand that public knowledge of a potential sale can affect the attitudes and actions of customers, employees, competitors, lenders, suppliers, or investors, and thus the value of the company.

3What is the best business to own?

Beauty is in the eye of the beholder. Most Buyers want to own a profitable, well-managed business in an industry that holds a personal interest for them. On the other hand, some Buyers may look for opportunities that offer turnaround potential, where they can apply their special skills. In general, there is no industry that is particularly better than another. However, there are specific businesses that are more successful than others - even in the same industry.

4How is an offer structured?

Most businesses sell for 50% cash deposit. The remainder is financed by the Seller, by a bank or through family resources. Sellers generally prefer to receive all cash at closing and some Buyers are able and willing to accommodate them. However, Buyers will want to leverage their business. The lender, whether it is the seller or a bank, wants the Buyer to show his commitment to the business by having vested financial interest in its success.

5What kind of financing is available?

Seller financing is usually the cheapest but is a rarity in South Africa. Banks will loan money on businesses that show a strong earnings history. They require a lot of documentations and the payment of upfront fees. If all else fails, family or friends will sometimes offer to help out. They can either provide funds or sign a guarantee for a bank loan.

6How long does it take to sell a business?

It can take anything from 2 weeks to a year to sell a business. Because of the confidential nature of a business sale, a business broker cannot put a For Sale sign on the window. The average time to sell a business is usually between two to nine months. However, there are exceptions. Some businesses may sell within a month of being put on the market. Others may take several years to attract the right Buyer. A business broker seeks out and talks to Buyers everyday.

7How do you advertise a business for sale?

Global Business Brokers uses various vehicles to market and advertise a Seller’s business in the most confidential and discreet method possible. At Global Business Brokers we realize the sensitivity of this issue and work diligently to protect the Seller’s employees and vendors from knowing that their business is for sale. At the present time Global Business Brokers uses a combination of internet marketing, local marketing sometimes in the form of newspapers, association publications and journals, referrals from past clients, accountants, attorneys, real estate professionals and we have a strong data base of qualified Buyers.