TYPES OF LISTINGS

Capitol Business Consultants can help business owners sell their businesses in a variety of ways, ranging from a full service Traditional Listing, based upon a percentage of the sale or a Specified Flat Fee Listing. We also offer Consulting Services to assist business owners sell their own businesses.

TRADITIONAL LISTING SERVICES
 

Evaluate Business to Determine Sales Price - by Considering:

● Earnings ● Assets ● History ● Reputation ● Goodwill  ● Predictability ● Appeal of the business ● Ease of operation ● Location ● Owner benefits ● Established customers and suppliers ● Special technology or trade secrets ● Accurate and verifiable records, that will contribute to the ease of financing.● Assumable or owner financing available. Elements of an Established Business

Prepare a Business Summary:
● Description of the business explaining the products and/or services. ● List and describe the Furniture, Fixtures and Equipment (FF&E) and Inventory. ● Re-cast earnings to show the value of the owner’s benefits. ● Re-cast the Balance Sheet to show the value of the business to the owner. ● Explain the growth potential of the business.
Confidentially Market the Business:
	● Advertise the business in newspapers ads, trade journals and web sites, without disclosing the name of the business. ● Present the business to an established list of potential buyers that are screened and qualified. ● Screen potential buyers and secure Confidentiality Agreements. ● Keep transactions away from employees and customers. ● Arrange and conduct Buyer/Seller meetings.

Negotiate the Purchase Offer:

● Evaluate the purchase offers. ● Assist in the transition issues. ● Prepare a closing schedule. ● Identify possible tax issues. (All tax matters require advise from a CPA.) ● List and provide for contingencies. ● Secure earnest money deposits from buyers and place funds in escrow. ● Assist Seller with analyzing financial terms, lease assumptions and non-compete agreements.

Prepare the Closing Documents Using an Escrow Company:

● List the representations, warranties and indemnifications. ● Prepare promissory notes. ● Obtain security agreements and personal guarantees when applicable. ● Arrange for lease transfers and assignments. ● Prearrange for bank and/or SBA funding to assist the Buyer.

A Listing Agreement can be cancelled anytime simply by giving proper notice.

SPECIFIED FLAT FEE LISTING

Negotiated Flat Fee - Generally about 1/3 of what the contingency commission would calculate. The fee generally can be paid over a specified period of time and is earned for services. It is not contingent upon sale of the business.

This listing option offers all the services and benefits of the Traditional Listing .

Suited for an uncomplicated business, probably less than $500,000, a business that is expected to sell in a short time or a situation where the Seller has identified prospective Buyers, but wants a broker to manage the transaction.

CONSULTING SERVICES

This option is designed to assist Sellers to sell their own business. There are a variety of reasons why this approach may appeal to the seller and may be appropriate. Seller may selectively chose services.

Fee Schedule

With this option, the Seller receives all inquiries from prospective buyers, but Sellers can have the inquiries directed to Capitol Business Consultants for an additional percentage, if desired.