ABI Says Understanding of Business Sale Process is Vital.

SAN RAMON, Calif. -- ABI (Allen Business Investments), with 60 years' experience helping business owners achieve their goals, advises business sellers to consider using an intermediary who can facilitate the process from start to finish.

"Much has been written about exit strategies lately, but many business owners are not aware that professionals like us are available to assist them in marketing their businesses or the value that a good business broker can bring to them," says Ron Johnson, CBI, M&AMI, president of ABI in San Ramon, Calif. "I urge them to research brokers in their area, look for members of IBBA (International Business Brokers' Association) and CABB (California Association of Business Brokers), and the designation "CBI" (Certified Business Intermediary) or ask for referrals from their CPAs or attorneys. I recommend interviewing several brokers before contracting to work with one."

Johnson, who presents to business and professional groups about preparing their businesses for sale, advises business owners to have the following in order before deciding to contact a business broker or placing a business on the market:

* Financial statements for the past 3-5 years

* Good reasons for the sale

* Copies of marketing materials, flyers, advertisements, etc.

"A very small business or a sole proprietorship should be proactive about loosening the ties between an individual's name and the business name. Building the business's reputation will make it much more appealing to a prospective buyer," Johnson continues.

Prior to listing a business for sale, ABI spends several weeks educating the seller about the process, fact finding, business valuation and industry research. A marketing package is prepared including:

* A Confidentiality Agreement, required from every prospective buyer

* A two-page blind Business Profile, with no company name revealed

* A Confidential Business Review package (30-50 pages), available upon receipt of non-disclosure agreement 

ABI client businesses are marketed predominantly on the Internet through ten websites, including ABI's own. A few buyers still come from newspaper advertisements.

In addition, ABI creates a list of synergistic companies, competitors or other companies that have similar customer bases or similar vendors. After the client reviews the list and makes any desired changes, ABI ranks the companies according to desirability. Letters are sent to them along with the blind Business Profile.

"We find this to be very effective because we know that there are a number of businesses that would like to add to their current products or services," Johnson says. "An example might be a company that installs storage cabinetry in garages and wants to add garage doors, or interior or exterior doors, to its line of products. Our letter and profile present an opportunity to connect with a complementary business that is for sale and may be a good match. Recently, we created a list of about 400 synergistic companies for a client.

"Confidentiality is key to business sellers and that's one of the major benefits we can offer," concludes Johnson. "In addition, we can almost always sell a business for a better price than an individual can and, throughout the process, make the sale as stress-free for the seller as possible, and reduce likelihood of future legal issues."

Ron Johnson has personally completed over 100 transactions and has managed hundreds of others. He is very active in the IBBA, where he was recently elected chairperson by the Board of Directors. Ron also teaches Introduction to Mergers & Acquisitions for IBBA and is a frequent contributor to business brokerage professional journals, publications and websites. He may be reached at 925-838-8150 or [e-mail].