Interested in Selling?

Collaborative

We have a team of diverse and seasoned people working together to support the seller, and buyer, throughout a seamless transaction. There is always someone here to speak with a client regardless of other deals, vacations, and schedules. Our combination of internal team and strategic partners include experts in small business financials, marketing, operations, administration, and deal negotiations.

Business Broker

Each individual broker works as an independent silo responsible for every single aspect of a transaction, alone.  A seller is wholly reliant on this one individual. Regardless of whether the broker is gifted in one particular area, it is difficult to have experience in all areas required for these types of transactions. If a broker is talented, he or she will be busy with deals that are in the final stages of closing and other listings will be put on the backburner. There is no back up and ultimately sellers and buyers both suffer from this structure.

Collaborative

Our deal team will put forth a significant amount of effort into creating an opinion of value for a client’s business. This is incredibly important because we will dig deep to find non-recurring expenses and owner benefits that are critical for a buyer to evaluate the business. We help sellers command a higher asking price by putting all this work in up-front.  Furthermore, we use the same valuation and financing metrics utilized by the banks, so there are no surprises at the time of financing. 

Business Broker

At best, individual brokers typically use a non-sophisticated cash flow sheet to determine an annual NOB (net owner benefit) for a business. This work is not cross-checked with accountants, financial analysts, or with banks. Not only does this typically result in lower cash flow (and a lower asking price), but also creates a liability for the seller. Once there is an offer on the table from a buyer, the seller will begin the due diligence process and begin checking for financial accuracy.  Oftentimes, buyers will find financial discrepancies which undermine faith in the business or irrevocably harm a deal. 

Collaborative

We approach every seller engagement with the development of a comprehensive marketing plan. This includes ads, brief “teaser” documents, and a full marketing package that gives a buyer the information needed to evaluate the business. The marketing package, which his typically 15-20 pages, includes a business overview, summary of offering, ownership structure, key employees, real estate details, facility pictures or video tour, competitive overview, opportunities for growth, and financial stabilizations from the opinion of value. All marketing packages are made in conjunction with the seller and are approved by the seller. Putting forth this much effort in the marketing materials saves a seller time by not having to answer the same questions repeatedly by buyers so they can continue to focus on the business.

Business Broker

There is typically a listing created to promote the business for sale, but limited if any additional materials created. The broker is simply responsible for marketing to generate an interested buyer inquiry, may forward a link to the seller’s website or provide other existing marketing materials, and ultimately does not develop materials specific to the offering.

Collaborative

Our team interacts closely with interested prospective buyers, starting with collecting a series of non-disclosure agreements to ensure the seller’s information remains confidential. This is critical, as releasing information to the wrong parties can result in negative impacts to the employees, customers, and supplier relationships of the business. We require every prospective buyer to complete a profile and financial statement for the seller’s review prior to a buyer being approved to move forward in the process. This is a time-saving feature for sellers, and assists in the financing process; a seller does not want to waste time on supplying due diligence information and transition tasks only to find that the buyer does not have the finances to obtain a loan.

Business Broker

No buyer qualification prior to interfacing with the seller, beyond just an initial conversation (which doesn’t always even take place). If the broker has an interested prospective buyer, they will facilitate an NDA being signed and then pass along the buyer to the seller.

Collaborative

This is an invaluable part of the process, and a key differentiator for our team. We assist buyers in all aspects of securing financing for the transaction. This includes setting-up a digital portal that has all of the seller’s financial information, marketing documents, and asset information. We assist the buyer in creating the following for a bank package: professional resume, personal financial statement, business plan, and pro-forma financials.  Our team also obtains all of the necessary SBA forms allowing us to present a deal to the lender that is ready for loan committee review.   Not only does this help the buyer through the daunting SBA process, but this helps the seller by ensuring quick and dependable financing. Our team has developed relationships with the area’s top business and SBA lenders who trust the information provided to the bank by Collaborative.

Business Broker

A buyer will typically be provided with a referral to a bank, with the no further assistance in the process.

Collaborative

Once financing is approved, we will facilitate connection with a neutral attorney to assist seller and buyer in the transaction. Legal counsel provides a set of standard deal documents based on the previously agreed upon LOI terms. The attorney charges a flat fee that is split between the buyer and the seller. We encourage both parties to complete an independent review of the legal agreements with their respective attorneys. This saves the seller time and money because the attorney is not trying to purposefully slant the documents to benefit a particular party.  Not all buyers and sellers go this route, but it is a referral we offer. To facilitate the final deal closing, Collaborative works with an experience title company that professionally handles all the documents and logistics of closing day.

Business Broker

Referral to a small business attorney; limited or no involvement in the transaction closing, other than earning a commission that often exceeds the value provided to seller.