Michael Cash

Broker License #B.1001098.CORP, NV Business Broker Permit #30

(702) 281-4751

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Business owners ask us "How much is my business worth?" Good question! The value of privately-owned businesses is generally calculated based on the 'discounted cash flow methodology'. That is, a multiple of the discounted value of past and pro-forma future earnings, and certain consideration of the assets of the business. To calculate this value requires a careful analysis and 'normalization' of your books and records, and the accurate present value of all FF&E, real estate, and related assets. We always recommend a "certified" valuation by a qualified, third-party business appraiser. The cost for this type of certified appraisal generally runs from $2,500 to $7,500 (depending upon the size of the business). Having a "formal" valuation will almost always result in a much higher sale price of a business. If you are not ready to make this kind of investment in a formal valuation we have a couple of less expensive alternatives that can help you: 1) We can provide a 'comparables report' of businesses similar to yours that have been sold in the last few years. These are compiled from various databases of closed sales of private businesses in the US. The cost for this service is $350, and includes a one-hour confidential consultation with the broker to discuss your particular business objectives. 2.) We can also prepare a 'Broker Opinion of Value' (compiled by the broker) which encompasses the normalization of at least 3 years of your tax returns and profit & loss statements. This is a much deeper analysis of your business than a comparables report, and utilizes many of the same techniques of a formal, certified valuation. The cost for this Broker's Opinion of Value is $1,600, and is refundable if you list and sell the business with Benchmark. Should you list your business with Benchmark these are the steps to our verified, successful business sale process: 1. A MEETING is scheduled at your convenience so that you and Benchmark Business Advisors can become better acquainted personally and with regard to each of our respective businesses. 2. REVIEW of your company financials for the last 3 years (or longer). This includes current year-to-date profit & loss statements and previous year tax returns. You must have current, accurate financial statements available in order for us to consider your business for representation (sorry, no exceptions!). 3. BUSINESS VALUATION and/or BROKER PRICE OPINION. We always recommend a formal valuation from a certified business appraiser. This provides us with an “arms-length” unbiased professional opinion of the value of your business. It also gives the buyer much more confidence regarding the information we provide about your business, and will almost always result in a much higher sale price. Another option is a ‘Broker’s Opinion of Value (BOV), a price opinion prepared by the Broker. While this is a less-expensive option, the BOV does not have the same “arms-length” advantage of a formal valuation. In either case, we must identify all owner salary and benefits to prepare an Adjusted Cash Flow & ROI analysis. This analysis is used to establish the true net operating income of the business which will be used as the basis to justify the highest possible listing price. 4. MAXIMIZE THE SELLING PRICE: A key factor to selling a business for the highest price is being able to justify the selling price in a way that is understandable to a buyer and their respective advisors (CPA, attorney, etc.). We utilize tools such as previous comparable business sales, earnings analyses, asset appraisals, real estate values, etc., that may be applicable to your particular business. 5. PREPARATION OF DUE DILIGENCE MATERIALS: Includes, tax returns, FF&E details, any franchise agreements, employee reviews, unnamed customer list by volume, accounts receivable aging report, analysis of asset allocation issues, lease review, lease transfer or new lease requirements etc. Be advised that your business will be subjected to a rigorous due diligence process by any Buyer prior to the close of escrow and we begin preparing for that process even before accepting the listing. 6. PREPARE BOUND PRESENTATION MATERIALS: Written by the Broker with the goal of rousing the Buyer’s interest and leading to the next step, ie: a meeting with the seller. We focus the presentation on key factors such as: upside potential, business details, organization charts, the businesses operating environment, customers, general market analysis, any customer concentration issues, operating methodologies, key employees and retention strategies, required strategic planning initiatives, and many other topics. 7. MARKET THE BUSINESS FOR SALE: Advertisements for your business will appear on over 125 sites and publications including national business-for-sale internet sites, major newspaper sites, wsj.com-Wall Street Journal, the Benchmark website etc. We also utilize our own proprietary national and Las Vegas buyer lists. The goal is to generate many buyers and not rely on just one buyer. 8. SCREEN BUYER PROSPECTS: All potential buyers must sign a non-disclosure statement, fill out a Buyer Profile, provide a photo ID, and are screened for their financial ability to purchase the business. 9. ANSWER THE INITIAL QUESTIONS ALL BUYERS ASK: “Why are they selling? How do they justify the price? Is the income verifiable? What is the upside potential? Is the seller willing to finance the purchase or is other financing available? Is the business reliably able to pay me a reasonable salary, generate a decent ROI, and still pay the debt service?” 10. SHOW THE BUSINESS: Prepare seller for all meetings with pre-screened buyers. 11. ASSIST IN NEGOTIATIONS AND HELP WITH PURCHASE AGREEMENT We are licensed to sell businesses in Nevada and generally represent your interests as the ‘Agent for the Seller’ only. We handle all negotiation--which are often very detailed and always confidential. We can refer you to the most reasonable and competent local attorneys and other professionals if needed. 12. ASSIST IN DUE DILIGENCE: Contingency releases, timing Issues, franchisor and landlord Issues. 13. ASSIST IN FINANCING: Qualify the business & buyer, SBA pre-qualification of the business, preferred SBA lenders and other sources (401k lenders, etc.) 14. ESCROW & CLOSING: Review escrow documents, UCC searches, release of liens, escrow Instructions, notes, loans, etc. 15. ORDERLY TURNOVER PLAN: Help with licensing, tax bonds, utilities, business services, banking, entity formation, accounting, legal services, insurance, franchise requirements, training plans etc.

Michael is a seasoned 16-year business broker and is the owner/broker of Benchmark Business Advisors. A 25-year resident of Las Vegas, Michael has in-depth experience as a Las Vegas business broker and a business owner. if you don't know how to get started, or are not sure of the best approach to prepare your business for sale, contact Michael to discuss options for a successful exit strategy. Benchmark's seller client list includes private owners, public companies, real estate partnerships, and estates. Michael has extensive experience presenting all types of businesses to family offices, private equity groups, and strategic buyers. Even if you are not ready to sell now, Michael will offer you a free initial consultation on how best to plan for an eventual sale, when the right time does arrive. Michael also works with attorneys, investment planners, CPA's, and certified business coaches who can assist in implementing proven strategic operating plans for smaller enterprises, with verifiable and usually dramatic results. NV RE Brokers Lic.# B.1001098.CORP, NV Business Broker Permit #30, California RE Lic.# 01955824.

Areas Served

  • Clark County, NV

Established Businesses For Sale

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