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Strategic Processes
A strategic process for a business broker is a set of steps that a business broker follows to achieve their goals and make their sales. This process typically includes the following steps:
Company Confidential Due Diligence
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Conduct in-depth interviews with senior management
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Identify valuable attributes Sales Candidate offers to potential acquirers
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Define the elements and financial results of the Company’s long range plan (up to 5 years out)
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Quantify the synergies, cost savings, etc., potentially achievable by strategic acquirers
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Prepare a comprehensive business valuation under alternative strategic alternatives
Marketing Campaign
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Prepare a confidential investment or acquisition memorandum
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Prepare Company Summary or Executive summary Highlighting company attributes
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Obtain NDAs from all interested parties before disseminating Investor Memoranda
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Effectively communicate the Company’s vision, operating and financial capabilities, and answers to questions to key decision makers
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Screen buyers and coordinate facility visits with Sales Candidate management
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Following facility visits, the interested parties will be asked to submit letters of intent
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financial and strategic acquirers
Negotiation Process
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Structure of the proposed transaction
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Financial consideration and proposed major terms and structure
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Form and timing of any type of proposed deferred compensation
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Coordination of employment contract issues with key Company executives, if appropriate
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Negotiate all other relevant terms in the letter of intent
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Coordination with appropriate legal and tax counsel
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In the event of multiple bids, negotiate strict time-dependent milestones in order to obtain the optimum transaction
Tips
1. Define your goals: What do you want to achieve as a business broker? Do you want to sell a certain number of businesses each year? Do you want to generate a certain amount of revenue? Once you know what you want to achieve, you can start to develop a plan to achieve it.
2. Identify your target market: Who are you trying to sell businesses to? Are you targeting small businesses, medium-sized businesses, or large businesses? Once you know who your target market is, you can start to develop marketing materials and strategies that appeal to them.
3. Generate leads: How are you going to find potential buyers and sellers of businesses? Are you going to use online marketing, cold calling, or networking? Once you have a plan for generating leads, you can start to reach out to potential clients.
4. Qualify leads: Not all leads are created equal. You need to qualify leads to make sure that they are a good fit for your services. This means asking questions to determine their needs and budget.
5. Market your services: How are you going to let people know about your business brokerage services? Are you going to create a website, use social media, or attend networking events? Once you have a plan for marketing your services, you can start to reach out to potential clients.
6. Negotiate deals: Once you have found a buyer and seller who are interested in doing a deal, you need to negotiate the terms of the sale. This includes the price, the terms of payment, and the closing date.
7. Close the deal: Once you have negotiated the terms of the sale, you need to close the deal. This means getting all of the paperwork signed and transferring the ownership of the business.