How our business brokerage works
1. Meeting
First, we meet, in San Diego or via video call online. We listen to your case and what your priorities and goals are. Our advisor will explain our business brokerage process in detail and suggest a concrete plan with next steps for how to buy or sell a business.
2. Business valuation
To successfully buy or sell a business, we cannot stress enough the importance of first obtaining a truly independent business valuation. If you are selling a business, a realistic price will improve your chances of finding a buyer while avoiding undervaluation. If you are buying a business, you will appreciate knowing its true value and avoid overvalued businesses.
3. Exit planning (when selling a business)
If you are selling a business, proper exit planning will help you complete the transaction successfully. We help you avoid pitfalls and overcome hurdles throughout the process of preparing your business for sale. Reviewing finances and improving profitability can have a significant impact on valuations, increasing your chances of getting a price you are happy with.
4. Transaction advisory
The final step is the transaction process. As M&A advisors, we know that time is a critical factor in any transaction. We ensure that your transaction proceeds smoothly by removing obstacles and facilitating negotiations between buyer and seller. We also provide independent due diligence.
Using an advisor or a business broker – which is best?
The first thought of many people looking to buy or sell a business in San Diego is to hire a business broker. However, using a pure transaction advisor such as Nielsen Valuation Group will provide many benefits.
Here are the key differences:
When you want to sell a business
The process of selling a business through San Diego business brokers may seem straightforward, but in practice it’s rarely that way. In many cases, you will begin by paying an engagement fee that makes your listing available to prospective buyers.
Then you must wait patiently until a buyer comes along. At that point, the business broker will negotiate and, if you are lucky, close the deal. If your business is sold, you will have to pay the broker a substantial success fee (commission).
What no one tells you is that your chances of selling your business are often quite slim. Some research suggests that up to 80% of brokered listings remain unsold!
When you use Nielsen Valuation Group as your transaction advisor, the process is very different – to your advantage. You do not pay an engagement fee and we never charge a sales commission. Instead, what you pay for is unbiased advice that will help you sell your business as quickly as realistically possible at the right price.
When you hire us, you get expertise and trusted advice, not empty promises.
When you want to buy a business
When you buy a business through a business broker, you rarely get much advice in the process. And when you do get advice, how do you know it is unbiased?
Most business brokers are looking to sell a business for as much as they can get, because it makes them more money. This means you need to use an independent appraiser to determine the true value of the business, which comes as an extra cost.
You are also often limited to the listings that the broker has on hand, leaving many opportunities on the table.
When you use a transaction advisor like Nielsen Valuation Group instead, we will guide you through the process from start to finish. We will help you identify a suitable acquisition target, value the business, perform due diligence, and provide unbiased advice to you as our sole client for the transaction.
You are likely to find more suitable companies to buy and reduce the risk of overpaying.
Schedule a meeting with us
Let us show you how our process works in more detail during a face-to-face meeting in San Diego or via video call.
