| Welcome to the Online Home of Fairmate, Inc. we are a Los Angeles based business brokerage firm, providing specialized representation in the confidential sale or purchase of substantial, performing businesses. We are affiliated with BBN, a nationally recognized network of Business Brokers. & CABB, California Association of Business Brokers. We are dedicated to the professional and ethical servicing of the Business community through facilitating the successful transfer of businesses between serious, interested parties. Our processes are expressly designed to maintain Confidentiality while enhancing Salability! For the motivated, qualified Buyer who has been diligently searching out that ideal business opportunity, we save you time and money for the search and deliver the right opportunity in a professional manner. For Owners considering the sale of their unique and distinctive business, we are a full service firm, utilizing a systematic process to package and market your business. This process has been refined by experience encompassing over 25 years period. We deliver able buyers to you. Get things started today by calling 626-673-5344 |
| Sellers benefit from working with Fairmate Business Brokers because You can access the power of national and international buyers by simply calling a local broker. Buyers benefit from working with Fairmate Business Brokers because we understand that buyers buy economic performance and equities. |
| Professional Business Appraisal |
Tax Advisor
| Buyers over 2,700 strong, with combined down payments over $8 Billion looking to buy businesses. |
| Fairmate |
| National Association of Certificated Valuation Analysis |
| California Association of Business Brokers |
| Get things started today by calling 626-673-5344 |
| Office: 626-673-5344 |
| Gerrald Nance BBN President |
| Larry Brewer Associate |
| Patsy Chan Broker REALTOR |
| Don Smith Business Valuator |
| Acquisitions & Mergers We bring able buyer to our clients |
| We bring able buyers to our clients |
| Fairmate is a systematic Business Brokerage company. The company applies a quantitative and systematic approach to Business Mergers & Acquisitions, with the goal of generating high-quality and diversifying alpha buyers for our clients. |
patsy.chan@LosAngelesBrokers.us
| Resource Center for Merger & Acquisition |
| Business Brokers Network |
| Buyers Investment Criteria: Founder or Family Owned Businesses Strong Management Team Diversified Customer Base Revenue $ 5 million and up EBITDA $ 1 million and up |
| Buyers are looking for business that has most of the following criteria:
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Why Should I Buy A Business Rather Than Start One?
An existing business has a track record. The failure rate in small business is largely
in the start-up phase. The existing business has demonstrated that there is a need
for that product or service in a particular locale. Financial records are available
along with other information on the business. Most sellers will stay and train a new
owner and most will also supply financing. Finding someone who will teach you the
intricacies of running a business and who is also willing to finance the sale can
make all the difference.
What Is The Real Reason People Go Into Business For Themselves?
There have been many surveys taken in an attempt to answer this question. Most
surveys reveal the same responses, in almost the same identical order of priority.
Here are the results of a typical survey, listed in order of importance:
To do my own thing, control my own destiny.
Don't want to work for someone else.
To better utilize my skills and abilities.
To make money.
*It is interesting to note that money is not at the top of the list, but comes in fourth.
How Are Businesses Priced?
Generally, at the outset, a prospective seller will ask the business broker what he or
she thinks the business will sell for. The business broker usually explains that a
review of the financial information will be necessary before a price or a range of
prices can be suggested for the business.
Most sellers have some idea about what they feel their business should sell for and
this is certainly taken into consideration. However, the business broker is familiar
with market considerations and, by reviewing the financial records of the business,
can make a recommendation of what he or she feels is what the market will dictate.
A range is normally set with a low and high price. The more cash demanded by the
seller, the lower the selling price; the smaller the cash requirements of the seller, the
higher the price.
Since most business sales are seller-financed, the down payment and terms of the
sale are very important. In many cases, how the sale of the business is structured is
more important than the actual selling price of the business. Too many buyers make
the mistake of being overly-concerned about the full price when the terms of the sale
can make the difference between success and failure.
An oft-quoted anecdote may better illustrate this point: If you could buy a business
that would provide you with more net profit than you thought possible even after
subtracting the debt service to the seller, and you could purchase this business with
a very small down payment, would you really care what the full price of the business
was?
What Should I Look For?
Obviously, you want to consider only those businesses that you would feel
comfortable owning and operating. "Pride of Ownership" is an important ingredient
for success. You also want to consider only those businesses that you can afford
with the cash you have available. In addition the business you buy must be able to
supply you with enough income - after making payments on it - to pay your bills.
However, you should look at a business with an eye toward what you can do with it -
how you can improve it and make it more productive and profitable. There is an old
adage advising that you shouldn't buy a business unless you feel you can do better
than the present owner. Everyone has seen examples of a business that needs
improvement in order to thrive, and a new owner comes in and does just that.
Conversely, there are also cases where a new owner takes over a very successful
business and not soon after, it either closes or is sold. It all depends on you!
What Does It Take To Be Successful?
Certainly, you need adequate capital to buy the business and to make the
improvements you want, along with maintaining some reserves in case things start
off slowly. You need to be willing to work hard and, in many cases, to put in long
hours. Unfortunately, many of today's buyers are not willing to do what it takes to be
successful in owning a business. A business owner has to, as they say, be the
janitor, errand boy, employee, bookkeeper and "chief bottle washer!" Too many
people think they can buy a business and then just sit behind a desk and work on
their business plans. Owners of small businesses must be "doers."
What Happens When I Find A Business I Want To Buy?
When you find a business, the business broker will be able to answer many of your
questions immediately or will research them for you. Once you get your preliminary
questions answered, the typical next step is for the broker to prepare an offer based
on the price and terms you feel are appropriate. This offer will generally be subject
to your approval of the actual books and records supporting the figures that have
been supplied to you. The main purpose of the offer is to see if the seller is willing to
accept the price and terms you offered.
There isn't much point in continuing if you and the seller can't get together on price
and terms. The offer is then presented to the seller who can approve it, reject it, or
counter it with his or her own offer. You, obviously, have the decision of accepting
the counter proposal from the seller or rejecting it and going on to consider other
businesses.
If you and the seller agree on the price and terms, the next step is for you to do your
"due diligence." The burden is on you - the buyer - no one else. You may choose to
bring in other outside advisors or to do it on your own - the choice is yours. Once
you have checked and approved those areas of concern, the closing documents
can be prepared, and your purchase of the business can be successfully closed.
You will now join many others who, like you, have chosen to become self-employed!
Why Should I Go To A Business Broker?
A professional business broker can be helpful in many ways. They can provide you
with a selection of different and, in many cases, unique businesses, including many
that you would not be able to find on your own. Approximately 90 percent of those
who buy businesses end up with something completely different from the business
that they first inquired about. Business brokers can offer you a wide variety of
businesses to look at and consider.
Business brokers are also an excellent source of information about small business
and the business buying process. They are familiar with the market and can advise
you about trends, pricing and what is happening locally. Your business broker will
handle all of the details of the business sale and will do everything possible to guide
you in the right direction, including, if necessary, consulting other professionals who
may be able to assist you.
Your local professional business broker is the best person to talk to about your
business needs and requirements.
Do I Need An Attorney?
It may be advisable to have an attorney review the legal documents. It is important,
however, that the attorney you hire is familiar with the business buying process and
has the time available to handle the paperwork on a timely basis. If the attorney
does not have experience in handling business sales, you may be paying for the
attorney's education. Most business brokers have lists of attorneys who are familiar
with the business buying process. An experienced attorney can be of real
assistance in making sure that all of the details are handled properly. Business
brokers are not qualified to give legal advice.
However, keep in mind the fact that many attorneys are not qualified to give
business advice. Your attorney will be, and should be, looking after your interests;
however, you need to remember that the seller's interests must also be considered.
If the attorney goes too far in trying to protect your interests, the seller's attorney will
instruct his or her client not to proceed. The transaction must be fair for all parties.
The attorney works for you, and you must have a say in how everything is done.
If you know someone who has owned their own business for a period of time, he or
she may also be a valuable resource in answering your questions about how small
business really works.
You have to make the final decision that "leap of faith" between looking and actually
being in business for yourself is a decision that only you can make!
Copyright 2009 Business Brokerage Press
The opinions, beliefs and viewpoints expressed by the various authors for this
newsletter do not necessarily reflect the opinions, beliefs and viewpoints or official
policies of the California Association of Business Brokers.
| For private consultation: Call 626-673-5344 |
| Free first 15 minutes of evaluation hourly consultation at $500 or by project Fee |
| Robert Hoder Associate |