Matrix Business Investments
Business Brokerage Services

Consultation
Perform a Business Valuation
Gather Due Diligence Information and Develop Confidential Marketing Materials
Establish a Marketing Plan
Manage the Selling Process
Manage the Due Diligence Process
Manage the Closing Process

We meet with the prospective seller to determine the motivation and expectations of a sale. Expectations and reality are not always the same and it is important to make sure that the goals are realistic and can be met.

If you are a prospective business buyer, we work with you to determine what you hope to accomplish by buying a business and to what type of business you would best be suited for.

This very valuable step for a seller that requires an experienced business broker. We begin by conducting a comprehensive business valuation to establish a selling price the business will bring in today's market environment. We do this by examining the value of the business' assets, cash flow, and other intangible factors that contribute to the total value of the business. Three approaches factor into our valuation to determine a selling price:

1. Income Approach- establishes a value based upon multiples of revenue and/or discretionary earnings (cash flow)
2. Direct Market Data Method- compares the business to other business sales locally, regionally and/or nationally
3. Excess Earnings Method- weighs the earnings of the business along with the opportunity cost of employing the capital assets, along with the more qualitative aspects of the strengths and weaknesses of the business' competitive environment and lifestyle.

These methods are weighed, and a selling price is determined.

During our analysis of the business, it is not uncommon to expose areas of value not seen by the business owner, or discover areas that may be hindering the value of the business. We work with the business owner to address these areas and to maximize value. As soon as selling price is established, we work from a buyer's perspective to see if the buyer can finance the business and still meet reasonable income, investment and lifestyle expectations. When we find a qualified buyer, this step gives us the data and a rational model to confidently ask for a full price offer.

As a buyer, we can help you to determine the value of a business that you are interested in purchasing and ensure that the seller's asking price is a fair one.

With the help of our client, we develop the following three documents to support the sale:

1. Confidential Business Summary

• attributes of the business profile
• summary financial history
• general geographic area
• resources required to operate the business

This allows us to begin dialogue with a buyer to further qualify their interest, resources and abilities prior to disclosing the name, location or details of the business. Once the buyer is qualified, we have the buyer execute a confidentiality statement in order to receive additional details of the business. 

2. Comprehensive Business Review
This document is presented to a qualified buyer and includes the following aspects of the business: business history, product & service descriptions, industry trends & competitive outlook, staffing & operations, summary of detailed financial performance, the business offering, and a buyer's acquisition scenario in the form of project sources & uses of funds. This is a thorough document and allows a buyer to evaluate the business and structure an offer subject to due diligence.

3. Due Diligence Information Package
This comprehensive set of source documents supports all the information needs of the buyer, and his advisors (banks, attorney, accountant, inspectors, etc). MBI ensures a smooth and successful process by anticipating these requirements and collecting the data in advance. It helps to eliminate any surprises that could potentially cause problems with a qualified buyer.

This plan includes web-based listings, print advertising, and other marketing strategies. We first target our own extensive data base of qualified buyers and our industry contacts of other brokers with qualified buyers and vertical market experience. If a qualified buyer does not surface from our initial marketing efforts, we re-evaluate and redirect our efforts.

In this stage we interview and qualify buyers who emerge from our marketing efforts, in addition to making outbound calls to known prospects. We employ a consultative process in evaluating the needs of the buyer and matching them to individual businesses. Often buyers will make contact with us about one type of business, but actually acquire another. Altogether, our marketing for an individual business often creates benefits for our entire roster of clients.

We walk the buyer through the steps of appreciating the value of the business and help them understand ways in which they could improve upon the business's past performance. We assist the buyer in structuring offers and contracts and we stay central to all aspects of negation and information exchange.

We work closely with the buyer and/or the buyer's agent throughout this phase. We offer support to the buyer in developing their business plan, obtaining financing, and conducting their inspections & due diligence.

MBI coordinates the closing between the attorneys, banks, and other professionals involved in the process. We direct and document all of the adjustments, prorations and apportionments that create a complete and balance transfer. We also assist in any post-closing adjustments required.