Working with a business broker

You’ve worked too hard and too long to risk selling your business by yourself. You need a professional who knows how to sell businesses, where to advertise, and has industry contacts. The chances are you’ve not sold many businesses in your career, and now is not the time to learn. Engaging Your Broker’s Services When seeking a broker to sell your business, your due diligence is required in selecting the most suitable firm. Some things to think about: You want to know how your broker will advertise your business and their budget for this purpose. If your sale is confidential, you’ll want to know how the broker will advertise, yet keep your identity unknown. Does your broker think a cash sale is best for you, or a price with terms? Determine that the broker is a good fit for your type of business; has the firm previously sold a business of your type and size, and in your location? Remember that time kills deals…so is the broker experienced in moving the process along rapidly? Be clear about the frequency of contact you expect from your broker; if you want frequent updates, say so. Find out how quickly the broker responds to buyer inquiries, and the protocol for moving prospects forward. Inquire about how many listings the broker has and determine if he or she is too busy to be a good selection for you. Reviewing the engagement proposal Once you have selected the broker you believe will do the best work for you, the broker will require you to sign an engagement letter detailing your working relationship. This letter...

It takes a village…

If you’ve been following our blog, you’ve probably seen a number of posts over the last few months about exit planning, a complex topic that can be difficult to understand. Exit planning in its simplest form is a well-constructed plan to help a business owner to exit his or her business at a specific date in the future. The plan helps the business owner maximize his or her finances which includes increasing the value of the business before its sale or the owner’s retirement. A good exit plan incorporates many moving parts – a personal financial review, a business valuation, an estate plan, a strong investment portfolio and much more. Synergetic Finance possesses expertise in many of these areas, but we welcome the opportunity to work with other professionals to help our clients achieve their financial goals, including estate planning attorneys, CPAs, insurance advisors, business coaches and others. If you fall into this category and want to partner with us to better serve your clients, we’d love the chance to talk with you. Contact us today to set up a consultation call or visit. We also encourage you to take a look at founder and CEO Joseph M. Maas’ book Exit Insight: Getting to “Sold!” to learn more about the exit planning process. You can read excerpts from the book on our blog, or you can purchase your own copy at Merrell Publishing or Amazon.com.   We look forward to hearing from...

Are you for real? Are you ready to sell?

Selling your business is a big decision and requires a lot of thought and planning. How mentally and financially ready are you to sell your business? When are you seriously thinking about selling? Do you want to sell your business immediately? Or are you thinking about five years from now? 10 years? The more time that’s available before you sell, the higher the probability of receiving a higher price and securing a transaction that actually works out. Many businesses aren’t ready for sale, and need to prepare themselves by increasing value and perfecting the many elements such as sales, products/services, facilities, equipment, personnel, brand and documentation. Are you ready to work with a team of professionals whose only focus is to position your business favorably in the market? If your business isn’t freshened, doesn’t have curb appeal, and doesn’t stand up to internal scrutiny, it will never sell. Are you in a financial position to sell? If you need $500,000 on the sale of your business, but the valuation determines a lesser price, you may be unable to sell and will have to stay with your company for several or many more years. All these topics require self-reflection and a discussion with your financial planner to come to a conclusion about your state of readiness for making a very big change in your life and financial prosperity. The previous passage is an excerpt (pp. 337-338) from author Joseph M. Maas’ book “Exit Insight: Getting to Sold,” available online now at Merrell Publishing and Amazon. You can also visit us online or call 206-386-5455 for more information about selling your...

What kind of investment advisor is right for you?

In February 2013, I wrote a blog post about choosing an investment advisor. A year and a half later, that advice still holds true. When choosing someone to handle one of your most valuable assets – your money – you want to select someone you can trust and who cares about your goals. Here are some tips for selecting the right advisor for you. Get referrals from family and friends. Visit the advisor’s website. Schedule an introductory appointment. Ask key questions including: How is the advisor compensated for his or her services? Does the advisor represent one company or multiple companies? This will give you an idea of the range of products and services the advisor can offer. Who manages the firm’s portfolio of assets – someone within the company or a middle man? At Synergetic Finance, we manage our portfolio in house. How often will the advisor meet with you to discuss your portfolio, investment results, goals, time line, etc.? Will you get personalized service from an advisor with whom you can develop a long-term relationship? What is the advisor’s fiduciary responsibility? This can vary. A Registered Investment Advisor (RIA) has a fiduciary responsibility to give you the best options for your situation, not just options that are suitable. The wealth managers at Synergetic are RIAs. What is the advisor’s educational background? How long has he or she been in the business? What’s the advisor’s track record for success? Whether you are investing a few hundred thousand dollars or a million dollars, you want to choose an investment advisor who will put your goals and needs first. If...