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Proper Materials to Generate a Sale

Proper Materials to Generate a Sale

Listing Price: Depends on Revenue, Income, Transition, Automated Process, etc.

Approximate # of Touchpoints with Potential Buyers: Depends on Price, Attractiveness of Offer, and Industry

Potential Buyer: Depends on Industry

When preparing a listing not only do we need a teaser and NDA, but we also need a properly prepared prospectus showcasing the appeal of owning your business and what your business does. It will generally not be enough to show a domain name and the business financials.

Here is a list of prospectus materials we will draft.

  • Teaser
  • Executive Summary
  • Business Opportunity
  • IP and Technology
  • Automation Processes
  • Shipping Processes
  • Search and Marketing (Organic vs. Paid)
  • Key Financials including Asking Price, Profit and Loss Statements, Projections, etc.
  • Potential for Growth
  • Industry Comparison
  • Barriers to Entry
  • Market Landscape
  • Valuation and Capital Injection Analysis for VC Potential
  • FAQ’s
  • Transition and Training Support

We have a good sense of what buyers are looking for and position the materials accordingly respective to your industry and processes, to make sure the buyer’s questions are answered and the business details are properly tee’d up for the initial conference calls the buyer will want to have directly with the business owner (when the time is right and they are ready to present a legitimate offer).

Owners trying to sell businesses themselves will avoid paying a commission, however, the short sighted sense of understanding a savvy and experienced buyer and what they look for will certainly leave a lot of money on the deal.

Carefully curated materials along with having a good liaison representing you is worth more than a commission, in terms of what you will walk away with and the time and effort you will save in finding a buyer. In addition, this business and/or your other ventures could potentially suffer if you take too much time away from them. One of the strongest assets is keeping your business producing similar numbers while you are selling. Focus on your business, while we focus on generating the buyer and positioning your business for a maximum valuation.

A savvy buyer will knock a FSBO (For Sale by Owner) down 20-30% on the asking price immediately just from the first introduction assuming you will be showing up without a professional prospectus aimed at savvy buyer’s questions, as well as proper LOI materials, financials, and Purchase Agreements, not withstanding any flaws in your actual presentation or business model itself which may leave room for further negotiations. It is very short sighted to try to save a 5-10% commission on a sale to spend the time curating leads yourself and presenting buyers with several makeshift materials. Do you even have a contract that protects you? Do you have time to field calls and send emails with dozens of tire kickers?

We also have a network of buyers looking for businesses. One blast email from us to our network can save you months of chasing leads.

In addition, not having a strong broker representing you, as a middleman who is not the direct owner, leaves the door open for unprofessionalism and for you to be bargained down significantly by the potential buyer. When a liaison is accepting the offer, the buyer has less negotiating power in essence to explain the reasons for the offer as they know you will be communicating the price and not the details surrounding such. Less games are played when the buyer speaks to a professional broker on the deal. It is worth it!

Part of the deal is being creative to getting it done. That means introducing financing and potential upsides for the buyer including licensing, spinoff, and flip opportunities from the acquisition that we help the buyer navigate through. We have connections with banks and can help buyers get to the finish line when they wouldn’t otherwise with other brokers or liaisons.

Please contact us at (800) 773-1523 or email acquisitions@jarbly.com about your listing for a free listing analysis and valuation on your business that you are looking to sell.

We look forward to selling your business in record time.

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