Tag Archives: Manufacturer for sale

How to Select a Business Broker

Smart sellers engage business brokers to maximize value and ensure a smooth transaction. As you shop for a business brokerage firm, it’s your responsibility to ask the right questions so you select the right party to sell your business.

Here are some questions to get you started, grouped into three general categories: experience, marketing, and administration. Choosing the best broker for your situation is crucial to getting top dollar with minimal headaches, so take your time interviewing candidates.


How long have you been a business broker?

Experience is crucial in this business–it’s a huge part of the value proposition you’re paying for with your commission. If the agent you’re interviewing doesn’t have a long track record, they can still do a good job providing that they get adequate support from their highly experienced colleagues. Ask detailed questions to confirm that you’ll be benefiting from experienced professionals. Also, confirm how long they’ve been with their present firm. While it’s normal to change firms occasionally, excessive transitions suggest a problem.

In what industries have you sold businesses?

If the broker hasn’t sold any businesses in your industry, they can still do a good job if they exercise due diligence and learn about the field. Ask them to share their experience in your industry. If it’s new to them, they should explain how experience with other clients will contribute to success, and how they’ll come up to speed in your industry.   

How many listings do you have?

A qualified business broker should have a number of active listings at any time–generally between 15 and 20. If their number is on the low side, find out why. If their number is on the high side, ask them about the size and performance of their administrative and support staff.

How many businesses do you sell annually?

A typical annual volume is eight to ten businesses a year. If the number is lower, find out why. If they sell very large businesses, a smaller number may be acceptable, but it’s important to learn more.

How many businesses have you sold in total?

More sales equals more experience. Again, if your prospective broker doesn’t have extensive experience, but has excellent support from colleagues and the resources of a large, established firm, she or he may be a suitable candidate.

What is your closing ratio?

When you get an offer, you want it to close successfully. Find out the closing ratio of your candidate, and ask what pitfalls they’ve encountered in the past which have disrupted closing, and what steps they’ve taken to address the problems.

Do you have testimonials?

Ask for testimonials and contact references. However, remember that business sales are confidential and brokers cannot disclose the information on any completed transactions without the seller’s permission.


How do you determine the value of my business?

A professional valuation of your business is one of the main benefits of retaining a business broker. You want a brokerage which stringently determines your business’s worth. They must consult industry standards, examine business comps and run calculations to come up with an accurate and realistic number. They also need to be transparent in this process, sharing the data with you to justify their conclusions. Correct pricing is crucial to a timely sale.

Do you have a database of buyers? How big?

A digital database sorting potential buyers can speed up a sale.


What’s your process for qualifying buyers?

Brokers have a duty to protect your privacy, so they shouldn’t share details about your business recklessly. Before the firm shares financials on your business, what measures do they take to qualify buyers?

Do you assist with obtaining financing?

Financing has undergone big changes in recent years. Make sure your broker knows what financial institutions are interested in financing your business.

Do you have reliable attorneys, lenders and tax specialists?

Deals often disintegrate because other parties such as attorneys, lenders and tax specialists drop the ball. Seek a firm that has established relationships with these professionals. There are a lot of moving parts in a high-stakes transaction, so clear expectations and a proven sequence of steps are crucial. For example, to minimize tax liability they must engage tax specialists to assist with structuring the deal before the business changes hands.

Check-out our recent list of businesses we’ve sold! 

Rotation Molding Manufacturer.


TYPE OF BUSINESS: Rotation Molding Manufacturer. This high demand manufacturer specializes and produces dozens of high quality Rotation Molding products for following markets: Automotive Aftermarket, Hunting, Fishing, Safety Services and Waste products to name a few. In addition to plastic part production, this business also operates an established tool (molds) building and full shipping facility as well. The employees are true trade professionals, able to provide detailed hands-on work and successful job management for smooth production. Owner is willing to work with a new owner after the business is sold to insure a smooth transition. Hours of operation are 6:00a.m. – 4:00p.m. Monday – Thursday. Owner wouldn’t need to be at the business every day. Multiple employees are capable of overseeing the operation. The best way to find stainless steel plumbing for this kind of machine which requires that is to go out and search your local steel junkyard or find a reliable local supplier.



FACILITY:  This business operates in a one story pole frame 16,400 sq. ft. structure. This structure consists of steel frame doors and windows, steel overhead doors, colored steel siding and gable steel roof by Prime Roofing Jacksonville contractors in the area. The office, lunchroom and restroom are finished beautifully with tile floors, sheetrock walls and ceilings.


EMPLOYEES:  This business has 10 full-time employees.

Most employees have been with the company for several years.


GROSS SALES/CASH FLOW:  The gross sales for 2012 were $1,170,000 cash flow was approx… $230,000. 2011 were $936,012; 2010 were $861,847.


ASKING PRICE: The asking price for the business is $765,000. This includes inventory valued at $40,000 and equipment, furniture and fixtures with an estimated value of $200,000. The asking price for the building and property is $535,000. Bank financing for the business and building is available to a qualified buyer.


REASON FOR SALE:  Retirement


Important Notice:  The above information has been provided by the Seller.  Neither The 20/20 Group, Inc. (dba Opportunities In Business) nor its agents guarantee its accuracy or comprehensiveness.       bk