January 1, 2003
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| Thinking about cashing in your business? |
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...You’ve got buyers
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Considering the lagging economy, it’s ironic to hear business brokers speaking of heavy bidding on companies. Some established companies actually see the rough markets as an opportunity to expand, buying out counterparts for their customer base or resources.
For the last ten years, Larry Lipner of the Andover Group Ltd has been brokering the sale of companies valued between $1 and $25 million. "Chicago is a difficult to find companies that are selling,” says Lipner.
Buyers are readily available but they won’t jump at just anything. Although companies in the red do manage to sell, Lipner highlights the numbers - “Exceptional financial performance makes a business stand out like a diamond in the ruff.”
The Business Broker
Business brokers act as intermediaries between buyers and sellers and serve a crucial purpose in acquisitions and mergers. For the seller, they will usually provide valuation of the company, help prepare marketing and sales materials, ensure that confidentiality is maintained and help negotiate the actual sale.
Many brokers are affiliated with professional networking and listing services such as the Business Broker Network (BBN). Listing services are available to the public but without qualified buyers already at hand, the task of selling a business can be daunting and present unforeseen risks. Brokers help sellers come to market properly packaged so they are presentable to buyers.
What’s in demand?
Brokers won’t really point to a particular industry as being a ‘hot’ market. The industries that have been seeing sales have ranged from manufacturing, to real estate and even to the software arena. Broker Linda Purcell of Purcell Associates LLC in Palatine mentioned that she has been approached multiple times in the last month from people searching for software companies on the market.
If you are interested in learning more about buying or selling a business you can contact the Midwest Business Brokers and Intermediaries association (MBBI). Visit www.mbbi.org to learn more.
Article Broker Contacts
Larry Lipner, The Andover Group Ltd.
info@andovergroupltd.com
Linda Purcell, Purcell Associates LLC
lpurcell@purcellasc.com
Check out the chi1.com resource center opening Feb. 1st for expert advice from business brokers.
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