YOU GET WHAT YOU PAY FOR.
I had a customer walk in my office yesterday. Seems she had been listed with another brokerage for over a year and it hadn’t sold. I had asked the day prior to send me her financials so i could prepare for the meeting.
When i looked at the listing compared to what i saw in the financials i was shocked. Simple errors that definitely impacted the sale-ability of this deal:
1. Owner benefit was understated by over 25k
2. Subsequently the price to earnings ratio was not attractive
3. No owner financing….if you don’t offer some financing you will not sell (that’s not me that’s what the data says )
4. The listing was showing 2012 numbers…..folks…its November of 2014…..need i say more.
Come to find out the seller told me she had a deal but the broker talked her out of financing 20k. There was a truck worth 14k and tons of other assets that could be liened…. Deal died.
The seller took the advice of the broker who supposedly was an expert and said the titles to the truck could not be liened.
Wow….was all i can say….Sellers do your research ….Results Matter when Selling Your business. The whole event reminded me of this commercial last year.