What does a business broker do?
Business brokers, intermediaries and/or mergers & acquisition specialists assist buyers and sellers of privately held businesses in the buying and selling process. Their deal expertise, established relationships and industry knowledge benefit a seller as the selling process advances faster, often resulting in an increased selling price. These professionals often specialize in businesses within a specific niche, such as, healthcare, technology or main street businesses.
Why should I use a business broker?
A business broker represents the seller in a similar way to a real estate agent listing and selling your property. A broker makes certain it’s a clean and complete transaction, that all financials and contracts are in place and the buyer has been thoroughly vetted. A good broker successfully negotiates a better price with less hassle or complications, overseeing all aspects of the transaction process. Buyers who try and go direct to the sellers do not have the seller's best interest at heart. They represent their own interests, not yours, trying to buy at the lowest price possible - that is their job. If you are speaking to a buyer directly, give us a call before you sell and we will give you an honest valuation for you to compare
Why should I use MT to sell my practice?
We think there are several reasons to talk to us and then decide if you want us to work with you to sell your business. We like to get to know our clients; some have become friends. We have an excellent track record and many happy former clients.
We are the most experienced broker in healthcare practice sales. We’ve done it longer and completed more transactions than any other broker in our space. MT Consulting worked for a decade as a buy-side mergers & acquisition specialists; we bought hundreds of businesses for two major healthcare corporations. Here’s why this is important to you..
What our buy-side experience has taught us is of direct benefit to you, nobody knows buyers better than we do, we know what they think and what they want. It’s as if we have ten years of post-graduate study in Buyer Psychology. For over a decade, we documented and cataloged all the KPIs (Key Performance Indicators) valuation techniques, ratios and formulas that buyers seek and assembled them into a powerful proprietary sales work flow. The MT Valuation Analysis, identifies and includes exactly what needs to be in your Seller Profile (listing package), taking into account all buyers criteria and buy signals. We incorporate what the buyer needs to see in your package, putting you in the best position to sell at the highest price possible (possibly even custom tailoring it for a buyer we already have in mind). There will likely be consulting time required (no cost to you), and work on your part to position your practice or business properly, but it is well worth it in the long run. Even if you are years away from selling, it’s best to get started so if there are financial or operational recommendations they can take place gradually without disturbing the work environment or your employees.
We also provide standard broker services such as initial valuation, buyer search, marketing, negotiation, and process management, assets value, real estate valuation, etc. that accelerates the sales process, minimizes your daily involvement and distractions, and maximizes your payday. Our staff is knowledgeable, friendly and available. Our goal is to achieve a deal that meets your financial goals and timeframe. It all starts with a conversation.
How do I know what my practice is worth?
The value of a business is best determined by conducting a free of charge, no commitment MT initial business valuation. We have done so many that we know all the right questions and necessary materials we need; we are very thorough and specific in collecting what we need for an initial valuation. Many factors influence the actual valuation estimate, such as company earnings & profitability, fair market value of physical assets and buyer interest in your specific sector. It’s always a good idea to get a current valuation as the market fluctuates, and favorable market trends could facilitate a decision to sell. It’s also helpful for tax purposes, estate planning or qualifying for a loan. A valuation is critical for key decisions related to growing and managing your business as well as a future sale. Click here for your free Seller’s Preparation Guide.
Is it possible to get overpaid for my practice?
The answer is a qualified yes, but not because a buyer is unsophisticated and is fooled into paying too much. To the contrary, buyers are very sophisticated, but their agenda might be different than yours. They may be willing to overpay versus a standard valuation if your practice is what they are looking for. They have many different buying criteria and several levels of management to please. It could be location, if they want to dominate a region and/or type of practice (they may have a mandate to buy 20 Dermatology practices in the mid-west as an example). When you decide to sell your business, you don’t know who is buying what where and who might be willing to overpay to satisfy their corporate marching orders. The good news is that we usually know because they ask us. Call us and we discuss who might be looking.
What kind of buyers will you show my practice to?
MT has been networking with buyers since we spent a decade as buyers ourselves and competed with hundreds of buyers when we were acquiring practices. We have continued to develop relationships with these buyers when we switched to representing Sellers fifteen years ago. So who are the buyers? Private Equity Groups who build a portfolio of a certain type of practice are steady buyers, sometimes public companies will start acquiring. There is a type of buyer called a Strategic which may have at one time been a multi-location practice that partners with Private Equity to grow locations. There are also regional companies looking to acquire practices, usually smaller ones. So depending on your location(s), revenues and profits, we have a good idea of which buyer(s) are looking for your type of practice.
How does the MT sales process work?
We work with you from your decision to sell to deal closing – providing guidance and support throughout the entire sales process. We collect all the information we need from you and apply our proprietary MT Valuation Analysis that gives us your valuation and any recommended adjustments to make your practice more attractive to our buyers. Engaging our services involves signing a Confidentiality Agreement (for your protection) and Broker Agreement – neither of which require a fee. Give us a call for a no obligation conversation to understand what it takes to get started. (see our process
How much do your services cost?
There are no upfront fees to engage us. Our compensation is based on a percentage of the final selling price of your business. In other words, we only get paid if we sell your business. All our consulting and advisory services that precede the sale are included in our time of sale compensation, so we partner together to sell your practice.
Is there a best time to sell?
The best time to market your business is when sales and earnings are trending up. To that end, consider starting to prepare 3-5 years from your desired exit. This allows time to review and address any financial and operational issues that may affect the valuation of your business.
How long will it take to sell my business?
This really depends on how prepared you are and how long it takes to complete the recommendations from our MT Valuation Analysis. There is no absolute answer except it varies, as many factors affect the timing of a sale. Buyers review acquisition opportunities based on organizational fit, their business strategy and taking into consideration your industry, financial condition, geography, competition and price. Partnering with MT can facilitate a smoother process and accelerate the time to close. A quick conversation with us can give you better insight.
Am I required to remain after the transaction closes? For how long?
While you may often want to remain in an on-staff post-closing to ensure a smooth transition, it is not a requirement and depends on the buyer. It’s customary for transition details (seller’s role, duration, compensation, etc.) to be addressed and negotiated as part of the deal. As a rule of thumb, the longer you stay the higher the price, so training up key staff years before a sale so you are not operational may negate the reason a buyer might want you to stay.
How can I be assured my information remains confidential?
We sign a Confidentiality Agreement with you. For safekeeping, we use a virtual data room as a primary safeguard in protecting your data. The service facilitates secure document sharing and storage critical during financial transactions. Protected data centers and permission-based user access adds to data safety and eliminates the potential of illegal distribution and viewing.
Can my accountant or lawyer help me find a buyer for my business?
Technically yes but unless they know some potential buyers already, it is not likely. Pre-sale preparation and the possible enhanced valuation utilizing the MT Valuation Analysis can result in a more favorable outcome and is recomended.
Your advisers are valuable members of your exit team in terms of their financial and legal input. However, MT provides the expertise in identifying qualified buyers, positioning and marketing your business, negotiating terms of a deal and getting you the best price. MT manages the overall process, including working with your lawyer and accountant, from start to finish.
More questions? Call for a no obligation conversation at 610 527-8400 or download our Seller’s Preparation Review Workbook
. It’s FREE, and will give you a head start in selling your business.