Murphy Blog, Author at Blog - Murphy Business

How Murphy Can Help You Land the Ideal Business Opportunity

Finding the ideal business opportunity takes time, hard work, and perseverance. It also requires you to know what you want from a business — a step that many entrepreneurs forget. Even then, you may struggle to find the right business without help from someone who knows the market.

Murphy Business Brokers can help you find the perfect business.

Working with a Murphy Business Broker can make finding the right business opportunity a lot easier. Our brokers take the time to understand your needs, possess an expert understanding of the business sales market, and have access to private business listing networks. We’re also experts at negotiating and closing business transactions, as well as acquiring financing.

Understanding Your Goals & Situation

As an entrepreneur, your ideal business opportunity will depend on your goals, skills, and resources.

When you meet with a Murphy Business Broker, we’ll start by exploring these factors. This way, we’ll understand what you’re looking for in a business. Just as importantly, we’ll know what you bring to the table. We want to match you with an opportunity that you’re passionate about and where you’re well-positioned for success.

To make this a reality, we’ll talk with you in detail about a wide range of considerations:

- Your Short-Term Goals. Where do you see yourself immediately after purchasing your business? What types of challenges are you excited to tackle? Which would you like to avoid?
- Your Long-Term Goals. What’s your ultimate goal as a business owner? At what point do you expect a positive return from your investment? Do you plan to sell the business at a later date or run it for as long as you can?
- Your Ideal Market. What type of living situation do you want for you and your family? How far are you willing to relocate for the right business? Are you looking for opportunities in specific markets?
- Your Skills & Experience. Which aspects of your professional background and skill set will be assets as a business owner? How can you harness your existing strengths? How much work will you put into learning new skills?
- Your Budget & Resources. How much capital can you afford to invest in a business opportunity? How easily will you be able to acquire financing? What other existing resources can you bring to a new business venture?

Based on your answers to these questions, we’ll then conduct a search for your ideal business opportunity.

Finding the Right Business Opportunity

No one understands the market for business sales like an experienced business broker. What’s more, no one is better equipped to navigate this market.

At Murphy Business, our brokers enjoy access to a wide range of business listing networks, including private networks meant exclusively for brokers. At the same time, we have connections to other Murphy Business Brokers. This gives our brokers insider access to major markets in 35+ different states.

In addition to providing you with access to a wider range of business listings, we make it easier to identify and target high-quality listings

Having handled countless business sales and purchases — and having written countless business listings ourselves — we can navigate listings much faster than independent buyers, and we can identify quality listings at a much higher rate of success. This way, you don’t need to waste time going from listing to listing, trying to find the best fit.

Negotiating & Closing the Deal

Finding the perfect business opportunity is a complicated process. But once you’ve found the right opportunity, you still need to negotiate and close the sale itself. And that can be an even more complicated process for buyers.

By hiring a Murphy Business Broker, you’ll have an expert to guide you through these steps. We can assist or represent you in negotiations, help you avoid common pitfalls that occur during this stage, and connect you with qualified legal and financial experts.

Murphy Business Brokers can also help you acquire the financing you need to purchase a business. Our brokers maintain close contact with local lenders in U.S. markets, and we have experience helping buyers acquire both traditional financing and SBA loans.

Searching for the perfect business opportunity? Call (888) 561-3243 today to connect with a Murphy Business Broker and request a free consultation.

How Murphy Business Brokers Sell a Business

At Murphy Business, the process that we use to sell a business has been honed over 25+ years. Our process offers the flexibility that you need to sell on your terms. At the same time, it delivers the rigorous attention to detail you need on a transaction as valuable and complicated as a business sale.

While Murphy Business Brokers are deeply familiar with this process, most business sellers are not. When you sell a business, the process is kept confidential. Because of this, few business owners know what this process entails.

At Murphy, we strive to be as transparent as possible about this process and how it works. So if you’re getting ready to sell a business, here’s a closer look our system.

Stage 1: Preparing to Sell a Business

If you want to sell a business, you and your business broker need to be on the same page. That’s why Murphy Business brokers never rush clients into engagement agreements.

Instead, we start with a no-strings-attached initial consultation. This gives us the chance to learn about your business, but also about why you’re planning to sell and what you’re hoping to get out of the transaction. At the same time, we’re able to explain our process for how to sell a business. That way, you’ll know exactly what to expect.

After your consultation, we’ll perform a broker’s opinion of value or a business valuation. Some business brokers will often valuate a business by applying a standard multiplier based on the industry. But at Murphy, we know that this is rarely a true reflection of market value. A formal business valuation is performed by a certified valuation specialist, giving you an accurate sense of your business’s market value. This will also help us identify areas where you can increase your business’s value, should you wish to do so.

Once your valuation is complete, we’ll reconvene to discuss your valuation and your next steps. If you wish to proceed, we’ll complete an engagement agreement and proceed to the listing and marketing stage.

Stage 2: Listing & Marketing the Business

When a client agrees to sell a business through Murphy Business, our next step is to create a custom marketing plan for their business.

While creating your business’s marketing plan, we have three core priorities:

- Reach as many qualified buyers possible
- Highlight the value offered by your listing
- Maximize the chances for a timely sale

At this stage, we create a set of bespoke marketing materials. We develop an overview of your business, which will form the basis for your listings. We also prepare detailed documentation on your business, which we provide to qualified buyers after they’ve signed a confidentiality agreement.

To market your business, we target potential buyers through a mix of strategies. Typically, this involves two core marketing channels. Direct marketing strategies help us target buyers whom we’ve pre-identified as high-quality candidates. At the same time, we will list your business on national and international brokerage networks to attract the broadest and deepest possible pool of potential buyers.

We want to make sure that you’re not wasting time and resources on non-serious buyers or those without the means to complete your sale. So once your listing starts to attract interest, we diligently qualify buyers. When you sell a business with Murphy, we use our experience and expertise to narrow the field of possible candidates to the most qualified set of buyers, while maintaining the confidentiality of your sale.

Stage 3: Negotiating & Closing the Transaction

Before we sell a business, Murphy Business brokers want to ensure that the sale is a great fit for both parties. So once we’ve identified one or more qualified buyers, we’ll evaluate offers and help you identify top candidates.

After this, we’ll engage these candidates to negotiate terms of sale. Sometimes, negotiations to sell a business are relatively simple and straightforward. Other times, completing the transaction requires creativity. For example, if the business is considered a somewhat high-risk venture, we can structure the sale so that the seller accepts part of this risk. Having a business broker can be invaluable at this stage to prevent deals from coming apart.

When it’s time to close the transaction, Murphy Business will facilitate the completion of your sale. Our brokers can refer you to any financial or legal specialists whom you may need at this stage. At the same time, we will ensure that your sale is procedurally and legally sound. In many cases, we will assist the buyer by helping acquire traditional financing or a small business loan.

Selling a business can be a long and complicated process. But that process is worth it if you can sell a business at full value, while finding a buyer who will bring the same level of care and passion to the business.

Getting ready to sell a business? Call (888) 561-3243 today to connect with your local Murphy Business office.

Why Hire a Broker to Find Businesses for Sale?

With the proliferation of business listing websites, it’s become much easier to find businesses for sale. Because of this, some first-time buyers assume there’s little need to hire a business broker when buying a business.

That can be a serious mistake. While these websites have made it easier to find businesses for sale, the confidential nature of business sales keeps many of the best listings hidden from public view. Additionally, finding and buying a business remains a tricky, complicated process, particularly for first-time buyers.

Without a broker, you may struggle to find the right fit. And even if you do, you might have trouble closing the deal. So, before you start to look for businesses for sale, here’s why it’s a smart idea to hire a business broker.

Murphy Business helps business owners sell their business.

How Our Business Brokers Will Help You Find Businesses for Sale

We’ll Help You Understand What to Look For

A number of business buyers know what they want out of a business. But when they’re looking at businesses for sale, they’re not sure what look for in a business to make that happen.

At Murphy Business, our brokers are experts at determining what businesses have to offer, and how to read business listings to gather this information. So, when buyers need assistance finding businesses for sale, we know what to look for.

At the same time, we can use our experience from other transactions to help uncertain buyers narrow down their list of options. Based on your situation, skills, interests, and resources, we can recommend which types of businesses will be the best fit for your needs.

We’ll Help You Find Higher Quality Listings

When you’re searching for business listings on your own, you’ll face a number of hurdles. First, you might not know where to find the kind of listings you’re looking for. Second, you won’t have access to some of the top listing networks. Third, you’ll be less efficient than a broker, which means you’ll find fewer listings in the same amount of time.

By hiring a business broker to find businesses for sale, you can find better listings than if you were searching independently. Brokers will know where to look, will have access to industry networks, and can leverage their skills to find top listings in a shorter period of time.

We’ll Help You Avoid Easy-to-Make Mistakes

Buying a business is a tricky and expensive process. Unfortunately, it’s all too easy for buyers to make unforced errors and mistakes. Here are just a few examples:

- Missing telltale warning signs of a high-risk business listing
- Accidental confidentiality breaches before a business is sold
- Procedural mistakes in financial or legal paperwork

With a business broker, you won’t run the risk of deeply expensive but easily made mistakes. An experienced broker will know which pitfalls to avoid. At the same time, they’ll have a proven system to ensure that I’s all get dotted and that T’s get all crossed.

We’ll Help You Negotiate and Close the Sale

A business broker won’t just help you find businesses for sale. They’ll also help you negotiate terms of sale and close the transaction.

Brokers have experience on both sides of business sales, so they know how to accommodate any specific concerns or requests from business sellers. If you hit a roadblock during negotiations, a broker can often find a workaround well-suited to both parties.

Hiring a business broker can also refer you to legal and financial specialists that you’ll need when purchasing a business. They can also help you acquire purchase financing, through referrals to traditional sources or through an SBA loan.

We’ll Save You Time, Effort, and Stress

Finding businesses for sale takes less time, less effort, and less stress with a business broker’s assistance.

On your own, you’d spend who-knows-how-many hours going through listings. That’s time and energy that you could direct to other pursuits.

At the same time, searching for businesses for sale can be a deeply stressful process. Without a broker’s expertise to rely on, you may worry about settling for a less-than-perfect business. Or you might fret about making small mistakes with big costs.

With an experienced business broker, these concerns fade into the background. By conducting the legwork of your search, a broker will spare you the time and effort that it takes to find great businesses for sale. At the same time, you’ll enjoy peace of mind, knowing that your search is being conducted by an experienced expert.

Start searching for businesses for sale with an experienced business broker! Call (727) 725-7090 to connect with your local Murphy Business office.

An Expert’s Advice on How to Find a Business Broker

Frank Chebalo has been working in the business brokerage industry for more than a decade. He’s worked as a staff broker at a successful brokerage firm. He’s operated his own independent brokerage business. And since joining Murphy Business, his Hampton Roads brokerage firm has become one of our most successful offices. So if anyone knows how to find a business broker, it’s him.

If you ask Frank, he’ll tell you that most people aren’t sure what to look for in a broker. That’s partly because most people misunderstand the role that business brokers are supposed to serve.

“People say to me, ‘Oh, you sell businesses.’ But when you look at what we do, that’s not actually right. What we really do is solve problems for business owners. And that doesn’t always mean selling the business.

“At the end of the day, we’re individuals helping other individuals solve a problem.”

In Frank’s view, if you’re selling a business, you don’t just want to find a business broker. You want to find a business broker who’s a committed problem solver.

Don’t Just Find a Business Broker, Find a Problem Solver

“We’re dealing with people where they’re selling the assets that they started, nurtured, and grew. So it’s not about finding just any buyer, but a buyer who’s going to carry the business forward.”

Frank says that the first problem most brokers need to solve is helping clients understand the brokerage process. Due to the confidential nature of business brokerage, many business owners have a hazy understanding of how a business actually gets sold. It’s important to find a business broker who makes that process as clear as possible.

“The reality of what we do is very difficult and complicated, and most people don’t fully understand it. So the first thing I’ll do is sit down with a person and talk them through what selling their business looks like. That way, they get an understanding of how the process evolves, even if now’s not the right time to sell their business, which it isn’t for a lot of people.”

At that point, Frank says it’s important that you find a business broker who can accept that answer.

“A lot of people will come back a year later, and by then, they’re ready to sell, and they’re in a much better position.”

Frank notes that it’s best to find a business broker who takes this problem-solving mindset into the sale process as well.

“We’re dealing with people where they’re selling the assets that they started, nurtured, and grew. So it’s not about finding just any buyer, but a buyer who’s going to carry the business forward. Someone who will keep it going long after the sale. And in the end, our clients are thrilled, because they’ve exchanged out the business, which was their ultimate goal, and they feel that they’ve handed it off to the right person.”

What Problem Solving Means for Business Brokers

“All of a sudden that energy and creativity comes back to them. And lo and behold, the business starts to perform again.”

Frank offers another example of why it’s so important to find a business broker who’s more interested in solving client’s problems than selling their business.

“The most difficult situations are the ones where the business owner has allowed a business to deteriorate in performance. By the time they come and talk to us, they need to get the business sold, because they’ve run out of energy. They’re coming to us saying: ‘I need to sell my business. It’s getting away from me, it’s costing me money, I can’t keep up. I need it sold.’ And at that point, you have to say: ‘We’re not in a good place here.’

“I’ve done this a few times, where you enter into a consulting arrangement, and you help bring the business back up to speed. You make things more manageable. You get someone else involved. And you give the owner time to live their life again. All of a sudden that energy and creativity comes back to them. And lo and behold, the business starts to perform again.

“A lot of times, at the end of that process, the owner doesn’t want to sell their business anymore because it’s fun and rewarding and profitable again. And even though we didn’t sell their business, we solved their problem.”

The Advantages of Murphy Business vs. Independent Brokers

“There’s a built-in wealth of knowledge with Murphy that you don’t get with independent brokers.”

When it comes time to find a business broker, Frank says that there are advantages to hiring a broker who’s part of an established brand, like Murphy Business. Having worked as an independent broker himself, Frank says that independent brokers can have trouble finding time for their clients.

“As an independent broker, I had to do a lot of back-office work by myself. But Murphy does an excellent job of taking care of that work. Now I have that time back, so I can put that time into my clients, where it’s needed.”

He also stresses the value of finding a business broker who is part of a larger, trusted network. This way, they can draw on the expertise of other experienced brokers.

“Over the years, and this is known industry wide, the organization has attracted the best of the best,” he explains. “There’s a built-in wealth of knowledge with Murphy that you don’t get with independent brokers. And when I’m facing an unusual problem that I don’t know how to solve; I can find a business broker who does and give them a call.”

Want to find a business broker in your area? Call us today at (888) 561-3243 and connect with your local Murphy Business office.

What Sets Our Business Broker Service Apart?

At Murphy Business, we’ve worked hard to become the business broker service we are today. Over that past 25 years, we’ve become a leading name within the business brokerage category, and we’ve set ourselves apart in a number of ways.

For starters, we offer the high-touch relationships that distinguish local brokers. Unlike most larger brokerage firms, we specialize in Main Street business transactions. We take the time to understand what makes your business unique, as well as what makes it uniquely valuable.

At the same time, we’re one of the largest business brokerage networks in North America, giving our brokers the resources, systems, and reach of a larger brokerage firm. We offer access to certified valuation specialists, customized marketing materials for your business listing, access to national and international brokerage networks, and more.

And that’s just the start of what makes us unique as a business broker service…

The Unique Qualities of Our Business Broker Service

If you’ve sold or bought a business through Murphy Business before, you already know what makes us unique. But if you’re working with us for the very first time, here are five areas where we stand out from other brokerage service providers.

Our Commitment

We dedicate our professional lives to business brokerage.

Broadly speaking, there are two kinds of business brokers. On the one hand, you have brokers who treat business brokerage as a full-time vocation. On the other hand are brokers who approach their work as a second job or a kind of professional hobby.

Unsurprisingly, the best business brokers tend to fall within the first category. They’re more invested in their clients, they’re more experienced and knowledgeable, and they boast wider professional networks. Simply put, their more committed to their work — and it shows.

With Murphy Business, you never need to worry about working with a part-time business broker. Every single broker within the Murphy network is dedicated to business brokerage full-time. By choosing our business broker service, you’ll be working with a dedicated, full-time broker.

Our Experience

We boast 25 years of business brokerage experience.

Our business broker service was launched four decades ago by our founder, Roger Murphy. Since then, we’ve become one of North America’s leading names in the field of business brokerage services. We’ve earned this distinction in part by making our 25 years of experience available to every client.

Each of our brokers has a detailed knowledge of the brokerage industry. This is made possible by our rigorous broker selection process, as well as the robust training we require for all Murphy Business brokers.

At the same time, we provide our brokers with direct access to industry experts. We maintain a network of veteran brokers for this purpose, allowing our brokers to quickly answer questions about practically any matter related to business sales and brokerage.

Our Reach

We can reach a wider and higher quality pool of business buyers.

Murphy Business started with a single office in Clearwater, Florida. Now, we operate in more than 35 states and Canada. This makes us one of the largest, most successful, and most recognized business brokerage networks in North America.

This gives us a level of reach that a typical business broker service cannot offer. We connect our clients with certified valuation specialists, provide referrals to local business services, and can help buyers find local financing.

More importantly, we have access to national and international listing networks. This allows our business broker service to market your business to a much wider pool of qualified buyers. As a national network, our brokers can collaborate on cross-market transactions, facilitating interstate and international sales.

Our Process

We use a proven system for business valuations, listings, and sales.

When you hire a business broker service, the first thing you should look for is a proven track record.

At Murphy Business, we not only offer the confidence of a proven track record. We also use a proven system for all of our business brokerage services. This system ensures a meticulous level of due diligence at each stage of the sales process: from your initial valuation to the listing of your business to the negotiation of the sale.

We also offer robust marketing materials for business sellers. We’ll create a custom listing to attract potential buyers, plus a detailed offering package to entice qualified buyers to purchase.

Our Values

We approach our work with honesty, integrity, and ethical practices.

In searching for a business broker service, you may cross paths with inexperienced or untrustworthy brokers. Some may try to win your business by inflating the value of your business in their initial estimates. Others may misrepresent their level of experience or their track record with business sales.

At Murphy Business, we know the importance of honesty and integrity in a business broker service. Our company was founded on rigorous ethical standards, and we hold our brokers to these standards above all else.

By working with a Murphy Business broker, you can rest assured in the honesty of our advice and the integrity of our values. We maintain an extraordinary level of professionalism and discretion, and we’re committed to making each sale work for all parties involved.

Connect with your local Murphy Business broker service and request a free consultation by calling (727) 725-7090 today!

The Advantages of Selling with Small Business Brokers

When you’re selling a business, finding the right business broker will save a lot of time and stress. More importantly, it will improve the actual chances of selling your business, and it can help increase the value of your sale. So, you want to make sure that your broker understands what it takes to sell your business. For most small business owners, that means choosing a small business broker.

What constitutes a small business? The Small Business Administration is the best place to reference for details, but typically a company with less than 250 employees is considered a small business. While the definition does vary by industry, the Small Business & Entrepreneurship Council found that of all US firms, 99.7% or 28 million are considered small businesses.

Murphy Business brokers can assist you in selling your business.

Small business brokers are brokers who specialize in selling smaller. These brokers tend to work directly with independent business owners, rather than working as part of a larger, multi-touchpoint team. They also tend to be locally based, focusing on sales within a particular market.

This makes them uniquely valuable to small business owners in a number of ways, both before and during the business sales process.

Why Sell with a Small Business Broker?

If you’re selling a small business, it simply makes sense to hire a broker who specializes in small business sales.

First and foremost, they’ll understand how to sell a small business better than a broker who’s focused on mid-size companies. The best small business brokers have chosen to focus on Main Street business sales because they’re passionate about working with Main Street business owners.

As a result, they’ve built a unique skill set for valuating and selling small businesses. At the same time, they understand the small business market better than most other brokers. They also possess detailed understanding of how different small businesses operate, and how different business structures impact the value of a business listing.

Working with a small business broker also comes with additional benefits. For example…

High-Touch Relationships

With small business brokers, one of the biggest advantages is the high-touch nature of their client relationships.

With larger brokerage firms, you’re typically looking at one of two options. Some of these firms specifically target larger businesses. They might accept small business listings, but they don’t invest a lot of time in smaller clients. Then you have larger firms that target smaller businesses, but who churn out listings via an assembly-line-style process.

In neither case will you build the kind of relationship you want with a business broker.

Instead, you want a broker who works specifically with small business owners and who treats each business and listing as a unique project. This kind of broker will take the time to understand the ins and outs of your business, what’s contributing to or detracting from its value, and how to make it saleable.

Professional References

The vast majority of business brokers are locally based, serving sellers within a specific metro area or regional market. Over time, they develop relationships with other local providers of professional services, including valuation specialists, attorneys and paralegals, real estate brokers, and loan officers.

These relationships can prove valuable to small business owners preparing to sell a business. Most sellers have never gone through the process of selling a business, so they don’t know which kinds of services they need or who to trust with these services.

A small business broker with a strong reputation and track record can refer you to other professionals who provide the services you need. Keep in mind that, typically, a broker only makes money if they successfully sell your business, and the money they make is contingent on the value of that sale. So, it’s in a broker’s best interests to connect you with the services you need to make your business more saleable and valuable.

Best of all, brokers who work with small business owners tend to develop referral networks with similar professionals. That means referring you to other professional services providers who specialize in working with small businesses like yours.

Local Expertise

A local business broker isn’t just a great source for referrals. They’re also a great source for information and insights about your local market.

This level of expertise can prove valuable in many different ways. If there are state or local regulations that could complicate the sale of your business, a great broker will not only alert you to these regulations but will also help you navigate them. If you find the perfect buyer but they’re looking for local financing, your broker will know where to direct them.

At the same time, a local small business broker will know how to market your city or region. Many business buyers are looking to not only find a great business, but also a great place to live. A great local business broker will know which types of buyers are attracted to your area, which qualities about your area attract them, and how to market your listing to these buyers.

Finding Small Business Brokers Near You

While selling with a small business broker has lots of advantages, that’s only the case if you find the right broker. If you choose an unreliable, inexperienced, or otherwise low-quality broker, you won’t enjoy these benefits.

Our suggestion? Start by contacting your nearest Murphy Business brokerage office. We have decades of experience working with small business owners. Additionally, each of our brokers offers the kind of local expertise you need in a small business transaction.

While we offer all the benefits that you’d expect from small business brokers, we also offer the perks of a larger brokerage network. Our brokers use a proven system for assessing, valuating, and listing small businesses for sale. We also have access to national and international brokerage networks. This allows us to reach a much larger pool of qualified buyers compared to your typical independent broker.

Looking for small business brokers in your area? Call (727) 725-7090 today and connect with your local Murphy Business Broker!

What Steps Should I Take When I List My Business?

If you’re a small business owner and you’re getting ready to sell your business, you might feel like you’re in uncharted territory. Selling a business is a complicated process, and it’s easy to make mistakes. What’s more, even a relatively minor misstep could cost you thousands of dollars. So before you proceed, you should be asking yourself: “What steps do I need to take before I list my business?”

At Murphy Business, we have 25+ years of experience selling businesses, and our brokers handle countless small business listings each year. So if you’re wondering what to do before you list your business, we have the answers you need…

“What Should I Do Before I List My Business for Sale?”

Before I list my business, should I hire a valuation service?

Yes, you absolutely should! A professional valuation will be critical to protect your financial and business interests. Without one, you could undervalue your business, causing you to lose value on the transactions. Or you could overvalue your business, causing the listing to stagnate and could affect the final purchase price.

What can I do before I list my business to improve its value?

There are several steps you can take to boost value before you list your business. For example, let’s say you’re involved in every aspect of your business. In this case, the value of your business depends largely on you. That value disappears once you’re gone. So if you want to boost the value of your business, you’ll need to scale back your involvement.

Should I hire a business broker to list my business for sale?

Hiring a business broker is one of the smartest decisions you can make before you list your business. An experienced business broker can walk you through every step of the listing process, provide expert advice on how to maximize the value of your business, and connect you with specialists to help with other aspects of the sale.

“How Should I Go About Listing My Business?”

What information should I include when I list my business?

When you’re listing a business, you need to think carefully about the information that you’re including. On the one hand, you want to maintain confidentiality, so you don’t want to include identifying information. On the other hand, if you list your business without including important information, you’ll struggle to attract buyers. If you’re unsure what kind of information to include, a professional business broker can help you build a saleable listing.

What information should I NOT include when I list my business?

As noted above, it’s important that you don’t include any information that makes it easy to identify your business. This information should be presented in a detailed, confidential selling document. This document should only be made available after a prospective buyer signs a confidentiality agreement.

Where is the best place to list my business for purchase?

If you’re unsure where to list your business, this is yet another reason to hire a business broker. As an independent seller, you may not be able to access key listing networks, some of which are only available to brokers. Other networks charge expensive fees for listings, which makes it difficult for independent sellers to market their listing.

“What Should I Do After I List My Business?”

After I list my business, should I run it any differently?

Many business owners make the mistake of changing the way they do business after putting their company up for sale. Usually, this is unintentional — the owner knows they’re selling, so they become less invested in the business. The business then starts to underperform, which causes its market value to plummet. In almost every case, you’ll want to continue running your business in the same way after listing.

How should I handle offers after I list my business?

Without professional advice and support, it’s easy to make missteps when handling offers for your business. For example, many sellers jump at the first offer they receive, when it’s usually better to wait and get a sense of how the market values your business. At the same time, it’s important that you qualify any potential buyer before proceeding with negotiations. If you don’t, you could waste valuable time and resources pursuing an offer that won’t go through. Worse yet, you could lose out on properly qualified offers during this process.

Who will handle the regulatory, legal, and financial details of the sale?

If you hire an experienced business broker, you shouldn’t be worried about the finer details of your sale. Successful and respected brokers will use a proven process to make sure these details are handled correctly. In addition to a business broker, you’ll want to make sure that you have a financial advisor and an attorney who specializes in business agreements. If you’re unsure who to hire for either of these roles, a good broker can provide referrals for local specialists.

“And One More Question…”

Who do I contact if I want to list my business with a Murphy Business Broker?

To list your business with a Murphy Business Broker, simply call (888) 561-3243. Our brokers can help you maximize the market value of your business, reach an extensive pool of qualified buyers, and navigate the negotiation process.

Mike Metzger on What Makes a Great Business Brokerage Company

When Mike Metzger decided to start a business brokerage company in 2014, he was taking a big leap. He saw a lot of potential in the business brokerage industry, and felt that Richmond, VA would be the perfect market for his business.

At the same time, Mike knew that business brokerage was a demanding industry. What’s more, he would need to leave a six-figure position with a Fortune 250 company to start his business.

The stakes were high. But after more than 15 years in the corporate world, Mike wanted the chance to connect with small and mid-market business owners. And as a former US Navy Officer and Six Sigma Black Belt Certified Professional, Mike also saw a clear need for a better kind of business brokerage company: one built on a foundation of uncompromising discipline, statistical analysis, and high-touch client relationships.

“That’s how I distinguish and differentiate myself in the Richmond market,” Mike says. “It’s through that combination of professionalism and analytical insight.”

This approach has paid off in the years since Mike opened his office. Under his ownership, Murphy Business has become one of the most successful business brokerage firms in Richmond, VA.

Recently, we talked with Mike about what business owners should look for in a business brokerage company, why his clients appreciate the Murphy Business model, and his advice to anyone who’s getting ready to sell a business.

What to Look for in a Business Brokerage Company

“I’ve heard from people who say, ‘I’ve called three brokers already today, and you’re the only one that picked up the phone.’”

Prior to starting his own business brokerage company, Mike researched the industry in detail. He was surprised to learn how many brokers ran their firms as a side-business. He was equally surprised at how hard it was to find knowledgeable, qualified brokers in many parts of the country.

Mike felt that business owners deserved a higher standard of expertise and professionalism from their business broker, and he continues to feel that way today.

“Our goal is to position ourselves as true professionals and experts in our field, on par with a CPA or an attorney. That’s the standard we should be holding ourselves to, and that’s how business brokers should be perceived.”

When Mike started his business brokerage company, he was determined to meet these standards. He spent months learning everything he could about the industry, and when he opened his office, he made sure that his clients came first.

“Coming across as a true professional makes a big difference. And that can be as simple as just answering the phone. I’ve heard from people who say, ‘I’ve called three brokers already today, and you’re the only one who returned my call.’”

At the same time, Mike developed a network of specialists and experts to help his business brokerage company better serve business owners.

“I think of myself as not just a business broker, but as a hub of expertise. So, when people call me and I think they could benefit from other people’s services, I’ll refer them out. That helps build my credibility as a true partner.”

The Benefits of a Proven Brokerage Process

“When you take the extra effort to understand the financials and the inner workings of a business, people appreciate that.”

In addition to expertise and professionalism, Mike stresses that brokers should offer a proven process. As a certified Six Sigma Black Belt with 15+ years of statistical analysis experience, Mike knows the value of proven, analytics-driven processes. In fact, that’s one of the biggest reasons why he chose to open his business brokerage company as part of the Murphy Business network.

“I wanted the chance to use my business skills and analytical skills, and I wanted to buy into a proven system. When I looked at the industry, Murphy had a system that really appealed to me. It was logical. It was well established. It was well documented. And it’s repeatable.”

According to Mike, this system has been crucial to the success of his business brokerage company.

“A bad broker will look at a profit and loss statement, apply a 2.3 multiplier to earnings, and put you to market. But that isn’t effective. When you take the extra effort to understand the financials and the inner workings of their business, people appreciate that. It means you can be upfront and candid about the business. And it means you can be realistic about what that sale will look like. Sometimes that means telling them that you can’t sell their business.”

Mike notes that his clients also appreciate the leverage of selling through Murphy Business. As part of the Murphy network, Mike can list his clients’ businesses through national and international brokerage networks.

“With Murphy, I have the horse power to get my clients more exposure. We have access to many data sources and listing networks. It’s expensive to list on these sites – individual and small brokerages just don’t have those types of resources.”

Advice for Business Owners Preparing to Sell

“I’ve had this happen before where we get it listed… and we start getting offers, and the value has tanked.”

Since opening his business brokerage company a little over four years ago, Mike has helped countless Richmond-area entrepreneurs sell their businesses. So, we asked Mike about the most important piece of advice that he has for business owners preparing to sell their business.

“One of the most important pieces of advice that I give to all my clients is to keep running the business as if you’re going to own this forever, even when we start talking to buyers. Don’t start throttling back and dropping sales.

“I’ve had this happen before where we get it listed, and we start getting offers, and the value has tanked because the seller took their foot off the gas.”

We also asked Mike about some of the biggest issues that his business brokerage company encounters.

“Without exception, the most common challenge I see is the business owner who hasn’t been able to step away from their business. The fact that they are so integral to every facet of the company can make it really challenging for the buyer to visualize himself or herself taking over.”

Mike says that, while the process takes time, his business brokerage company has helped a number of clients address this weakness, boosting the value of the business come sale time. In other cases, Mike has used outside-the-box strategies to help his clients capture full value for their business.

“Even though someone’s really integral to a business, that doesn’t mean the business isn’t sellable. But it might take longer to find a buyer. And once you find a buyer, the transition period might be longer, or you might need to structure the deal to spread the risk between the buyer and the seller.”

For Mike, these kinds of situations underscore the importance of hiring a business brokerage company that will go the extra mile to understand your business and to be transparent about the status of your listing.

“For me, the first step is explaining that upfront before you even take the listing. Having those conversations upfront can help avoid surprises down the line. When the rubber hits the road, I can advise them on which deal structures are appropriate and help them find the right deal for their business.”

Getting ready to sell a business? Call (727) 725-7090 today to connect with your local Murphy Business brokerage company!

When Should You Hire Company Valuation Services?

As you prepare to sell your business, your due diligence should include a proper business valuation. But when’s the right time for you to hire company valuation services? In many cases, owners lose value when selling their business because they waited too late for a valuation — a situation any small business owner will want to avoid.

Let’s take a look at a common scenario. You’ve been running your business for more than a decade. In the past few years, you’ve thought about selling, but you’ve made no concrete plans. Recently, your circumstances have changed: it’s time to sell your company. Before listing your business, you hire a company valuation service to determine the fair market value of your business.

The catch? Your business is worth a lot less than you thought. Worse yet, you no longer have enough time to sufficiently increase its value before it goes on the market. Suddenly, you’re looking at a much smaller nest egg for your retirement.

If you want to avoid this kind of situation, you should get your business valuated well ahead of time. This way, you’ll have an earlier sense of your company’s value. More importantly, you’ll have the time and the guidance you need to ensure your business will net the figure you expect to make your next move.

The Benefits of Company Valuation Services

A lot of small business owners think of valuations as little more than a formality. You need a number that you can stick on the price tag for your business. Company valuation services provide that number.

This line of thinking overlooks important benefits of getting a professional valuation. More importantly, it can lose you untold value when it comes time to actually sell your business.

A business valuation offers more than a simple dollar figure for the value of your business. It also shows you where that value comes from. What’s more, it can help you identify issues that are lowering the value of your business.

Using this information, you can develop a strategy for increased value. With help from a valuation specialist, you can come up with a plan that will strengthen areas of positive value and address areas of weakness. This way, your business will be worth much more when you finally list it for sale.

The benefits of this approach may seem glaringly obvious. After all, every business owner wants to maximize the value of their business when selling. But there’s an obvious drawback to this approach: it takes time and effort. If you wait until the last minute to have your business valuated, you won’t have the time you need to increase your valuation figure.

That’s why it’s a smart idea to hire company valuation services well in advance of selling your business.

When to Hire a Valuation Specialist

If you want to maximize the market value of your business, you need to start planning your sale well in advance. Rather than contacting a valuation specialist 3 to 6 months before you intend to sell your business, your initial valuation should take place 24 to 36 months in advance.

While this might seem excessive, it’s the only way you’ll have the time you need to increase your business’s value.

Let’s say you hire company valuation services 24 months ahead of selling your business. After your valuation, you learn that your business is worth less than half of what you expected. Accounting for the 6 to 12 months it will take to sell your business, you have roughly a year-and-a-half to address this deficit. If anything, you’ll probably regret not having valuated your business earlier.

That raises another important concern. Not only is it important that you hire company valuation services early, but it’s equally important that you find the right valuation service. If you hire an unqualified, inexperienced, or unreliable professional, you could end up wasting untold hours and/or dollars based on faulty advice.

Our suggestion? Contact your local Murphy Business® office to request company valuation services. All of our valuations follow the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation (USPAP), as well as the Business Appraisal Standards of the Institute of Business Appraisers.

As business brokers, we also know what it takes to increase the market value and appeal of your business. We pride ourselves on working closely with business owners in preparation for business sales and transfers, including professional consultation and strategic planning for raising the value of your business.

One final note: While it’s best to valuate your business well in advance of a sale, that’s not always possible. Even if you’ve waited until the last minute, there are steps that you can take to maximize the value of your company and position it for sale. So make sure to hire a trusted and experienced valuation specialist!

Need company valuation services? Call Murphy Business (888) 561-3243 to connect with a local business broker and request a valuation.

How To Sell A Business in St. Louis

Are you looking to sell your company, but not sure if you need professional assistance? At Murphy Business, we know the ins and outs of how to sell a business. We've worked with business owners in St. Louis, Clayton, St. Charles, Maryland Heights, and Chesterfield to provide expertise on how to sell a business at a fair, competitive asking price. Like most business ventures, valuable industry contacts and a seasoned business acumen can be a game-changer. For business owners, getting expert insights from a trusted brokerage can transform the sale of your business.

How To Sell A Business: 3 Reasons To Rely on St. Louis Area Experts

While you're an expert in running your business in St, Louis, you may not know how to sell a business while achieving a maximum possible profit. As your partner in selling, Murphy Business can help you reduce the selling period while successfully netting a robust price for your company:

Increase your sales prospects. When you choose Murphy Business as your brokerage, you'll get the benefit of our international reputation, resources, and connections. We don't just know how to sell a business to St. Louis area buyers. We'll also target national and international purchasers with strong buying potential and a high interest in expanding to St. Louis. With an expansive range of prospective buyers, we can leverage your business at a lucrative price.
A level head during negotiations. When you've built a business from scratch, it can often color your perspective during the deal structuring stage. At this crucial bargaining stage, it's vital to have an impartial third-party who can maximize your profits while providing a fair market price to the buyer. With Murphy Business, you'll have the advantage of trained expert negotiators in St. Louis who know how to sell a business while preserving goodwill between buyer and seller.
An expedited closing period. Once a deal is struck, you'll want to start seeing earnings pretty quickly afterward. Our business advisers can help to shorten the closing period while still doing comprehensive due diligence on a buyer. With our global network of banking contacts, which includes firms that deal with traditional financing and small business loans, we can help you to minimize seller financing if that's a concern.

You can focus on running your business, while we focus on getting you a great price with a trusted buyer. Call our expert team of business brokers at (314) 369-1436 to learn more about how to sell a business with Murphy Business Sales – St. Louis Central.