A Comprehensive Guide on How to Value a Small Business
May 31, 2023
If you’ve been wondering how to value a small business, the team at Advanced Business Brokers is here to help. As a full-service business brokerage
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Case Study: IT Business Sale
Advanced Business Brokers sells businesses across all industries and of varying sizes. One industry ABB has seen a lot of movement in is the information technology (IT) sector. This industry includes companies that produce software, hardware, or semiconductor equipment and companies that provide internet or related services as well as data processing and outsourced services.
The Client
NobleNetworks LLC, a privately-held business located in Portage Michigan, fit the bill. NobleNetworks provides IT services or systems integration services to other companies to reduce costly outages and staffing expenses through preventive maintenance and measures to increase their security, simplify their infrastructure, and address any network inefficiencies.
One of the owners, Ryan Noble, co-founded the business in 2007. After 15 years of owning and running the business, he was ready for a break and to “find new hobbies”. He reached out to ABB in early 2022 to see what his options were.
Below is Ryan's account of his experience working with Advanced Business Brokers and how he successfully sold his business.
Why did you choose ABB?
Ryan: Advanced Business Brokers was recommended by my CPA, Steve Hamacher and my Attorney, Brian Weiss. I felt like I was ready for a change because I was getting burnt out from running the business. I was curious if there was a market or any interest in my IT company, so when my CPA recommended talking to ABB, I decided to meet with them.
What was the first interaction you had with ABB?
Ryan: We began with email correspondence. They were very helpful right away and walked me through what it would look like to transfer ownership of my business to someone else. I didn’t know what I didn’t know.
We went over my situation and nailed down what my goals were for a potential sale. The insight was invaluable. I was provided with a form to fill out and we began planning our contract right away.
You don’t know, what you don’t know!
Check out this list of questions to ask yourself before you decided to sell your business
What were your initial concerns with the sale?
Ryan: My major concerns were my employees and my clients. I wanted to make sure my employees were able to maintain their jobs when the sale went through and that my clients would be taken care of. ABB made sure all of my concerns were addressed upfront in the pre-sale process and my expectations were clearly set for the buyer qualifying process.
What was it like working with ABB?
Ryan: They were very helpful in guiding me through the process. They gave me confidence that the sale of my business would happen just the way I outlined it with them. There were a lot of questions they knew to ask that I wouldn’t have even thought of. Brad was very friendly and did a great job of making me feel like I was their top priority. Larry’s assistance was also invaluable; I wish I let him take control during all the negotiations.
Do you feel like ABB properly prepared you for the sale?
Ryan: Yes, Advanced Business Brokers did a good job of setting reasonable expectations. The whole process only took about 3 months. There were many steps that I was unaware of and ABB helped with every one of them. In the final step, closing the deal, they secured letters of intent. They directed me to my CPA and attorney to keep the deal on track when it came time to make the sale.
Are you still trying to decide if you want to use a business broker to help with the sale of your business?
Would you recommend ABB to other business owners?
Ryan: Absolutely. I wasn’t convinced that I had a company that could be sold when I first began working with ABB and then they were able to find the right buyer and close the deal in a matter of a few months! Now I have the time to spend with my child and new baby and enjoy this next chapter of my life without worrying about being a business owner.
Are you a business owner who is ready to transition into something else?
Whether you think your business is worth selling or not, why don’t you work with the experts who can walk you through your options? We provide a no-charge, no-obligation, one-on-one meeting with an experienced broker to help you understand your options. Call us at (269) 903-8143 to start planning your exit strategy or contact us here and an ABB representative will reach out to you right away.
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