Los Angeles, CA -- (SBWIRE) -- 10/01/2012 -- According to the International Business Broker Association IBBA), businesses valued at less than $2 million dollars tend to take seven months or less to close. Those valued between $2 and $5 million take eleven months or less to successfully close while those valued at $5 million or more take anywhere from six to nine months to sell. Of those businesses valued at $5 million or more, 8% took two years or longer to successfully close. Brokers do expect to see an upward trend in this market over the next three months.
"Adequate seller representation is needed during this process," Steve Fitzgerald, media contact for Los Angeles Business Broker Acquisition Services Group states. According to the IBBA, unrealistic expectations are the number one reason why sales are not completed. "The goal at ASG is to ensure each client understands the sale process. In order to achieve this goal, the first step is to have the value of the company calculated. Sellers often make use of the net income on the federal tax return to determine cash flow. In all actuality, non-cash expenses must be added back into earnings along with discretionary expenses. Market conditions and valuations must be added in along with buyers' and lenders' approaches. ASG can be of great assistance during this process as our company provides reasoning and rationale to back up the valuation."
When the Los Angeles Business Valuation is complete, ASG develops a customized and confidential marketing plan to target those buyers most likely to pay full value for the business. ASG maintains databases of potential buyers which meet necessary requirements such as ability to run the company successfully and have the funds necessary to purchase the business. "ASG's goal is to find a number of potential buyers to ensure each company sells for the highest price possible. Competition is key to this process and ASG is skilled in negotiating a favorable deal for each seller," Mr. Fitzgerald goes on to say.
Once a buyer has been located, ASG manages the period between receiving the offer and closing the transaction. The Los Angelese Business Broker facilitates the due diligence process while coordinating with outside legal counsel to ensure all necessary legal documents are drafted. The broker also coordinates the final closing date and obtains approval from all parties. "Your business broker representative follows the process from start to finish," Mr. Fitzgerald explains. He or she will attend the escrow closing to ensure all documents are in order. After closing, Acquisition Services Group coordinates with attorneys and escrow to prepare bound closing documents for both buyer and seller. Our goal at ASG is to facilitate every step of this process to make selling a business easy."
Acquisition Services Group handles all necessary arrangements for business sellers. With extensive buyer databases, the company goal is to find a buyer for each client. Customized marketing plans are developed for each client and the goal is to maximize after-tax cash while minimizing the risks associated with confidentiality, legal issues and taxes. ASG acts as a liaison between the buyer and seller and takes this even further, acting as a liaison between the buyer, the CPAs, appraisers and anyone else involved in the transaction. Payment isn't due until the sale is successfully completed so the seller is less at risk.