American Hope Success
will promote the sale of your business for a premium.
The $4,700 M&A Consulting fee is to assure your true interest in selling your business.
Our total success fee is not the 12% charged by most business brokers. Rather it is 10% of the total sales price less the non-refundable M&A fee.
We are sure you will be happy with the additional money you get for your business as a result of our unique and thorough strategy of selling for a premium.
Let’s talk Exit Strategy!
It is amazing to me how little most people know about business and business ownership. I guess it is partially because most business startups happen because an employee decides it is time to be their own boss.
The fact that an individual with no real business experience is moving from the position of an employee to the boss is most likely the major reason 80 percent of all startups fail in the first ten years.
The fact that your business has survived as long as it has is a tribute to your skill, tenacity and perhaps dumb luck. Business consulting is a very lucrative market niche because most business owners are desperate for professional help. The typical business owner needs help understanding how to negotiate the lease or purchase of a home for the startup business. Then they need help to understand the financial statement. Each line item presents its own unique set of challenges. How much should you pay for rent? What products and or services will you offer? What percentage of your gross revenue will you allocate to advertising? Where will you find qualified staff? How much will you offer to pay for the qualified people you find.
This list could go on and on. I think you can understand the complexity of starting and operating a business successfully. But, do you understand how to sell your business for a premium?
Before we go any further, it is important to understand the fact that some consultants know less about the management of your business than you do. We have seen business owners relying on the advice of the so-called expert to the detriment of their bottom line to the tune of thousands of dollars to hundreds of thousands of dollars. Worse yet is the typical business sale today is for one half or less the true value of the business.
There are ten common causes for business failure today. All ten are solved with understanding, diligence, and perseverance. It is like the first step for the recovering alcoholic is admitting there is a problem. We encourage all business owners to consider getting help from a qualified management consultant before it is too late and you become a statistical failure.
All of this is true when you want to sell your business. The mistakes you made operating your business can be a huge detriment when trying to convince some poor investor to give you cold hard cash for the business today.
Let me give you a couple of examples.
- If you are the key employee buyers will be reluctant to purchase your business. As an owner, if you had delegated responsibility and built a qualified staff of people to run the business, the buyer prospect will recognize their value and pay more for your business. Past poor management styles come back to haunt you in the form of a lower price for your business if it is even possible to sell.
- If you have only one or two key customers, your stability and survivability can throw up a red flag to potential purchasers. Buyers see the risk and will be hesitant to pay a premium for your business for fear of losing the business when you or even a key employee is gone.
- A huge mistake made by many owners falls in the arena of money management. Careless bookkeeping or the second set of “real” numbers reveals poor management habits and brings your credibility into question. When I see an owner willing to risk going to jail to cheat the government, I don’t put much stock in his promises to me.
When you call for your free consultation or analysis of a potential sale, ask about proven marketing techniques which will overcome the obstacles to achieving the premium price you deserve for your business. A word of caution – you will not get what you “deserve,” you will get what you “negotiate!”
“In Business As In Life- You Don’t Get What You Deserve, You Get What You Negotiate.”
Chester L Karrass