BUSINESS TRANSFER SPECIALIST

Q: What is a business transfer specialist?

A. A business transfer specialist helps people who want to own or sell a business. This includes retail shops, restaurants, franchises, service businesses like distributing and printing, all kinds of manufacturing, laundries, and many more.

FINANCING

Q: Our resources are limited; does Sunbelt have small businesses available?

A. Sunbelt Asia will assist you with owning a business that is available for under 500,000 baht (USD$12,000) and that is valued for 1,200,000,000 baht (USD$30,000,000) or more. Many businesses offer very attractive terms with low down payments and owner financing. So, even if you have limited resources, you still may be able to own a business.

FEES

Q: What are your fees?

A. There is no fee or charge to a potential new business owner. There is also no fee or charge for a seller to have a consultation with us, or for a seller to list a business for sale with us. Our compensation is in the form of a commission earned when we successfully bring a ready, willing and able buyer together with a business owner.

CONFIDENTIALITY

Q: What about confidentiality?

A. Unlike the sale of real estate or franchises, the sale of an ongoing business is very confidential for both the seller and the new business owner. All inquiries are held in strict confidence. Meetings are confidential, and Sunbelt Business Transfer Specialist is available after hours and on weekends. The need for confidentiality is a major reason to use a Sunbelt business Transfer Specialist since it is very difficult for a business owner to screen possible buyers without disclosing their own identity or the identity of the business.

INITIAL INVESTMENT

Q: How much of an initial investment will I need?

A. The initial investment amount varies depending on the type of business, the seller's situation and the new owner of the business ability. Typically, the more initial investment you can offer a seller the lower the total investment of the business. Your Sunbelt Business Transfer Specialist will discuss with you the level of cash investment you are comfortable committing to the right business. Your Sunbelt professional also is experienced enough to know that you cannot totally commit all of your available cash. You will need some for operating capital, deposits, and other requirements. We like to insure you have extra set aside for emergencies and unforeseen situations to give you a higher comfort level. If you are getting outside financing you can expect a 15 to 30 percent cash investment on your part. If the business is being owner financed it varies widely depending on the value of the hard assets within the business. (Hard assets would include: Furniture, Fixtures and Equipment (FF&E) as well as any inventory). A good rule of thumb is to expect to pay 1 to 1.5 times the annual owner's discretionary income (owner's cash flow) as an initial investment. Knowing your comfort level of the cash investment is the most important information that your business transfer specialist needs to know to match you with the right business. This allows the Sunbelt business transfer specialist to focus on businesses that are the right size.

EXISTING BUSINESS

Q: Why should I invest in an existing business?

A. There are several reasons to own an existing business: Actual results rather than pro-forma. Immediate cash flow. Trained employees in place. Established suppliers and credit. Established clients and referral business. Existing licenses and permits. Training by the seller. The availability of owner financing.

FRANCHISE

Q: Should I consider a franchise?

A. Some of the advantages of owning a franchise: Known name means instant recognition Proven product or service. Ongoing support means you are in business for yourself but not by yourself. Better than 97% of new franchises are successful. Operating system in place - lessons has already been learned at someone else's expense. Opportunity to add additional units within the franchise system. More flexibility in location. Cost to get into a franchise is less than an existing business. Training by the franchisor. The availability of financing programs established by the franchisor.

KEY BUYING POINTS

Q: What are some of the key things to consider when investing in a business?

A. The main thing to consider is, Do You Like The Business?" Additional considerations are: location, initial investment and owner's discretionary income. What training will the seller provide? Can I improve on the business? What can I do that the current owner is not doing or has ceased doing because of "burn out" or lack of initiative and enthusiasm?

WHY A BUSINESS TRANSFER SPECIALIST?

Q: Why should I use a business transfer specialist to help me search for ownership of an existing business?

A. First, you will save time and money. A business transfer specialist services are paid by the seller and the broker knows what businesses are available. The business transfer specialist knows which businesses are in your price range. The business transfer specialist knows what the seller's needs are and what your requirements are. Therefore, a Sunbelt professional can structure a transaction that is good for all parties involved. The business transfer specialist works professionally and confidentially and has experience in overcoming every imaginable obstacle. The Sunbelt Asia intermediary can show you how to make an offer that protects you. He can coordinate the process and handle the negotiations at "arms length". This is important because after the closing you still need to work with the seller during the transition period. You certainly would not want any friction remaining from the negotiations. Let the Sunbelt Asia professional absorb any frictions and conflicts so that you and the seller can work harmoniously during the transition period.

Probably the most important reason is business sold by an owner without a business transfer specialist, have been damaged by the lack of confidentiality. How much damage has been cause by employees leaving, customer relations, and vendor relationships? You certainly would not own the same company it was just two months earlier. That's why confidentiality is critical. With Sunbelt Asia, after you own the business, the new owner and you will be working together for a short time period. Introductions are done so that these good relationships with employees, clients and vendors are maintained.

WHAT KIND OF BUSINESS?

Q: Can a business transfer specialist help me if I don't know what kind of business I want to own?

A. Yes, a Sunbelt business transfer specialist is trained to match the needs of the buyer with the businesses available on the market. There are four main components to help the Sunbelt professional find the right business for you. The most important factor is to find a business you like. Your business transfer specialist will assist by learning about your areas of interest, past work experience, hobbies and background. The Sunbelt professional will present a number of different types of businesses and will be able to identify components of these businesses which will help focus on the business best suited to your liking. Finding a business you like is the most important step in the process. If you don't like the business then move on until you find one that you like. The other factors include geographical location, amount of cash you are comfortable committing to an investment and the amount of compensation you need from the business. Our goal is to find a business you like, in the area you prefer, with the initial investment you are comfortable committing and with the level of compensation required by you and your family. It also helps if you are truly serious about owning a business. If you have any doubts if you really want to own a business and be your own boss then you should wait until you have resolved that question.

NEGOTIATION

Q: How are negotiations handled?

A. All negotiations are handled at arms length through your Sunbelt Business Transfer Specialist. It's important to facilitate a smooth transition of the business under new ownership. All negotiations can be stressful and after you have closed the transaction you and the old owner will have a good working relationship to begin the transition period. Let your business transfer specialist buffer any stressful negotiations. Your Sunbelt professional has been trained and is experienced in negotiating successful terms and conditions for the transfer of businesses.

CLOSING PROCESS

Q: What is the closing process?

A. Your Sunbelt Business Transfer Specialist will recommend using a professional closing officer. This improves the efficiency of getting the business transaction completed. The advantage of the closing officer is that they represent the transaction and the best interest of both parties. It is very difficult, time consuming and expensive if either the new owner or seller have their attorneys prepare the documents. Let your Escrow Lawyer coordinate the process of getting bills of sale, escrow and closing instructions, non-compete agreements, offset agreements, security agreements, abandonment of assumed names, and documentation of incorporation, settlement statements and the wide variety of documents which are specific to each different transaction. You should be able to prepare your business plan for the ownership while the Escrow Lawyer is coordinating the preparation of the documents for the transaction.

MONEY-MAKING BUSINESSES

Q: I would think only businesses for sale are the ones losing money. Does Sunbelt Asia have businesses that are making money?

A. This is a very common, but erroneous belief. The great majority of businesses for sale are being sold for what is known as human reasons, rather than financial ones. Human reasons include things like illness or death of the owner or in the owner's family, divorce, a desire to do something different, a desire to retire, or just plain burn-out. Generally speaking, a business does not survive for three or more years if it is losing money consistently. However, most business owners will take advantage of every opportunity that is legally available to reduce the taxes the business pays. Therefore, it is necessary to determine the total owner's benefit to fully understand the financial health of the business. The answer is yes, Sunbelt has thousands of businesses that are earning a profit.