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Top Business Brokers strive for a win-win situation between buyer and seller: The buyer pays a fair price with realistic terms that are manageable and can fully focus on future growth and expansion, often with the previous owner’s help and mentoring.
- Of 532,000 licensed real estate agents and brokers in California, only about 400 specialize in business sales only.
- Most are widely experienced, and have owned or run multiple businesses large and small.
- Average age of 55 (it takes a while to gain the necessary business acumen!)
- Commissions vary from 8-12% of the selling price, with 10% being the norm. Most have a minimum commission.
WHAT IS GOODWILL?
One of the major issues of concern for small business owners today is, how do I build and value the goodwill of my business?
The true value of any smaller business, or large business for that matter, is not the break-apart value of its tangible or hard assets. The true spirit and value of the business resides in the reputation, logo, trademark, lease value, web site, policies and procedures manuals, business plan, and perceived quality on the part of the customers and community; also known as goodwill.
Trucks, machinery, inventory, human resources, and raw materials don’t make a profit all by themselves. The organizing controlling, coordinating, planning, and unifying power in the business is what brings everything together and produces the “spirit” of the business that results in cash flow and profit.
From a strict accounting point of view, goodwill is that value over and above what is accounted for by the depreciated value of all the company’s tangible assets such as furniture, fixtures, and equipment.
A business broker assists in many ways in the process of buying or selling your business. Some of these include:
- Professional pricing and valuations.
- Marketing and advertising.
- Qualifying potential buyers.
- Presenting the business.
- Negotiating the sale transaction.
- Arranging for financing if needed.
- Handling and managing the escrow process.
- Organizing massive amounts of paperwork.
- Maintaining the privacy and confidentiality of your business.
Rex Walters, Ph.D.
3243 Sylvaner Circle
Santa Cruz CA
Voice: 831-239-2080
Fax: 831-476-1456
rexwalters@comcast.net
www.bayareastrategic.com
