Quick Facts About
Small Business Sales


 
 
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Where do Buyers come from?

How much money do Buyers have?

Can I get all Cash for My Business?

How Long does it take to sell a Business?

What Do Buyers Look for in a Business?

If I Seller Finance, what is in it for me?
 
 

Where do Buyers Come From?


 
First-Time Buyers--From Corporate America
70%
Professional Buyers
2%
Investment Groups & Corporate Acquirers
28%

 

We already have buyers with over $8 Billion in Down-payments
registered with us through our National Network,
ready to act for the right opportunity. . .

We may already have YOUR buyer!
 

How much money do Buyers have?

Percent of Individual Buyers Who Have (liquid):

 $500,000 or more
10%
$300,000
30%
$200,000
60%
$100,000
80%
$50,000

90+%


 

The more CASH required to make a deal, the fewer Buyers will be available.

The Deal Structure & Proper Terms are critical to creating a profitable sale for your business.


 
 

Can I get all Cash for My Business?

Down Payment Required
Market Value to Buyer
Likelihood of Sale
20%
120%
85%
35%
100%
80%
60%
70%
65%
80%
60%
40%
100%
50%
10-20%
                     
The more you require in cash,
the less attractive your business is to buyers. . . .
For the same dollar value of down payment, they can buy a larger business with better terms.

Most businesses sell with about 1/4- 1/3 down + loans supportable by the business cash flow.

The exceptions are businesses large enough, and in a desirable niche,
that will be acquired by larger businesses.

(We do targeted marketing to these synergistic buyers)

Some businesses also qualify for favorable terms with SBA financing, and the seller may get
MOST of his price in cash from that alternative financing.

(We have all our business listings pre-qualified for most productive marketing.)
 

How LONG does it take to sell a business?
 

At the RIGHT price & TERMS. . .

With a MOTIVATED Seller. . .

With AGGRESSIVE MARKETING, not Just Listing. . . .

The AVERAGE is 6- 9 Months.

**********

At WHATEVER Price , with the WRONG Terms. . .

With a Seller who is NOT TOO SURE about selling. . .

Listed with just ANY Broker. . .

Most Often (70%), it will NOT SELL AT ALL.

*********

If you truly want RESULTS. . . .

You need to be COMMITTED to the process. . .

You need to CONSULT KAP.

We have a PROVEN EFFECTIVE SYSTEM that works.

Your business will sell more quickly.

You will get more of your asking price.

You will not lose sleep, confidentiality, or employees in the process.

           Click Here Contact Us   OR . . . . .
770-918-9390
 
 

What Do Buyers Look for in a Business?

Buyers Will Expect a Business to Have
Sufficient Cash Flow to:

Pay Debt Service

Pay the Owner/Manager a Salary

Yield a Return Income on their Down Payment

Leave a Safety Cushion for Contingencies
 
 

Buyers Will Expect a Business to Have:

Up-to-date Financials, Inventory & Tax Records

A Presentable Work Place

Reliable Personnel

A Transferable Customer Base
 
 

If YOUR Business can meet these criteria, most buyers will consider it a viable business opportunity.


 
 
 

If I Seller Finance, what is in it for me?

Higher Initial Sales Price

More Competition for Buyers

Smaller Tax Bite Next Year

Significant Interest Income

Enhanced Buyer Trust

Samples of Cash Flow Benefits to you
from Seller Financing:

Assuming you Finance at 10% for 10 Years:


Amount Financed
Monthly Income
Annual Income
Cumulative Income
$100,000
$1,322
$15,864
$158,640
$200,000
$2,643
$31,716
$317,160
$300,000
$3,965
$47,580
$475,800
$400,000
$5,286
$63,432
$634,320
$500,000
$6,608
$79,296
$792,960
$600,000
$7,930
$95,160
$951,600
$700,000
$9,252
$111,024
$1,110,240
$800,000
$10,572
$126,864
$1,268,640
$900,000
$11,896
$142,752
$1,427,520
$1,000,000
$13,216
$158,592
$1,585,920

 

FIND OUT MORE about how YOU can make a profitable transition!!!
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Management and Marketing Consulting Services
Business Transfer Specialists
Serving Atlanta, GA and Nationwide

770-918-9390 OR FAX 770-918-9958