Seller FAQ’s

How do you value a business?

A business valuation begins with a financial analysis of the business. This information along with an assessment of key value drivers is measured against a wide range of industry data and comparable sales. A business value needs to be justifiable to a buyer and lender relative to their other alternatives. My goal is for you to receive top market value. My years of experience, access to industry data and expertise in the marketplace, collectively support the basis for a professional market valuation.

Why is this a good time to sell?

Currently, there are more buyers than established, successful businesses available to purchase. Buyers in every realm; individual buyers, strategic buyers and private and public companies and private equity groups are aggressively looking for new businesses to acquire. We have multiple buyers competing for our business engagements. Economies of Scale, product/service scope, market share, pent up demand from the past few years and idle cash reserves are factors driving demand. However, industry and demographic experts predict two-thirds of all businesses will change hands in the next 10 years. An excess supply of available businesses for sale is predicted as more boomers reach retirement due to the lower demand from the smaller group of next generation buyers.

What type of buyer will my business attract?

It depends on the industry and the size of the business. The Paragon Group has a reputation of attracting individual, strategic, and private equity buyers, nationally and internationally. Many are more aggressive, motivated and financially capable of consummating a transaction at top dollar. Without effectively reaching all of these prospects you may lose a sale opportunity with the best buyer’s offer.

What is a strategic buyer?

This type of buyer looks to acquire a business that will create synergies in their existing business through duplication/elimination of expenses, market share, capabilities, growth, new products and more. Because strategic buyers may actually get more value out of an acquisition than the intrinsic value of the company being acquired, strategic buyers are often willing to pay a premium price.

Strategic buyers are often referred to as synergistic buyers.

How do you market a business for sale?

I confidentially (blindly) market a business for sale through our firm’s proven marketing system which utilizes and customizes various confidential (blind) approaches to reach qualified buyers. Our buyer network is very large; many times a perspective buyer is already in our database. No buyer is privy to confidential information regarding your business until they complete a Non-Disclosure Agreement.

Why not sell my business myself?

A successful business transaction is multi-faceted, complex and time consuming. The process involves profiling and identifying qualified buyers, valuing and marketing, deal structure, negotiating terms, leases, personal guarantees, management contracts, non-compete covenants, payment terms, and assisting in loan package procurement if necessary. An experienced advisor handling these complexities in a confidential setting is critical.

A mistake in the negotiating process can cost you more than our fee. It is important a seller maintain or even grow revenues during the time a business is on the market to ensure top dollar for their business.

Why select David? (click here to read What Clients Have to Say)

  • My firm and I represent small and middle market listing engagements, providing critical industry knowledge and deal structure.
  • Our buyers are located across the globe and include public and private companies, private equity groups, and individual buyers.
  • The Paragon Group is comprised of intermediaries with an average of over 30 years business experience.

How are we paid?

We are Business Intermediaries, licensed by the State of Arizona. We are paid a commission (success fee) based on the size of the transaction at close of escrow. There is no up-front fee for most engagements.

 Sellers Reference

What Clients Have to Say