Considerations in SellingStep by Step ProcessFrequently Asked Questions
   
 
  • Frequently Asked Questions

 

   
 

Thank you for your interest and desire to know a little bit more about Jerry Baker & Associates and our unique approach to the merger & acquisition business. The following Questions & Answers should help to explain why you should consider engaging JB&A to help sell your business.  Please contact us via our toll free number to talk with one of our Associates at (888) 792-2537.

 

 

Q: Is JB&A a broker?
 

 

A: NO... JB&A is strictly a consultant.  JB&A charges no up front fees for our services - everything we do is on a contingency basis and is based on you getting the highest price possible for your business.  All legal documents are prepared by the acquirer then reviewed by JB&A; your attorney or accountant should also be consulted.
 

 

Q: Will I have to pay JB&A if I sell my business to another buyer?
 

 

A: NO... JB&A's services are non-exclusive. We will provide you with a list of companies that we feel would be interested in evaluating your business. If you have an opportunity to sell your business to anyone outside of the buyers that we list, you owe JB&A nothing.
 

 

Q: Should I sign an exclusive agreement with a broker/intermediary?
 

 

A: Absolutely NO... You should never sign an exclusive agreement and give up your ability to sell your business on your own.  An exclusive means that whether you sell your business to a family member or any other buyer, you will owe your broker/intermediary a commission.  JB&A offers its service on a non-exclusive basis. 
 

 

Q: Why should I use JB&A when I can go directly to the buyer and not pay a fee?
 

 

A: We deal with the buyers on a daily basis. Therefore, we know which buyer would be most interested in your business, and how they price an acquisition. We know the proper way to present a business to potential acquirers.  We know that the offer has to meet your expectations, plus cover our commission otherwise you will not accept the offer.  The fee should be irrelevant if we meet your objectives in a selling price.  It would be unwise to not have representation in such an important endeavor.
 

  Q: Why should I use Jerry Baker & Associates as a business consultant?
 
  A: Besides our in depth research of the buyers and the industries, we deal with several companies on a daily basis that want to buy businesses. This allows us to understand the process and identify who would be the best buyer for your company. We know the prices being paid so that we can help you get the best value for your business. Our goal is to make the process easier and less time consuming allowing you to concentrate on what you do best - run your business.
 
  Q: How long does the process take to find a buyer?
 
  A: We realize that each individual has their own personal timetable concerning when they would like to sell their company. At JB&A, we work hard to provide the best opportunity for you and your company in a timely manner.
 
  Q:  How successful is JB&A in putting buyers and sellers together in a transaction?
 
  A:  We believe our credentials stand out above all others in the industries that we serve.  We have closed over two hundred transactions.
 
  Q: How do you determine the value of my company?
 
  A: JB&A has an in-house staff that utilizes years of experience to recast all of the financial information that you provide into a complete and concise picture of the true "industry" value of your business.  We also make sure that your company’s intangible assets are considered.  We go the extra mile to make sure that your business is presented in the best possible light.  We strive to maximize the value by understanding your business from both our your perspective and that of potential acquirers. 
 
  Q: How does Jerry Baker & Associates negotiate the price to sell my business?
 
  A: Jerry Baker & Associates represents your interests and helps to negotiate the best price possible for your business.  By listening to the needs of our client, we are generally able to bring about an acceptable offer.  Sometimes, the pieces don't come together because of market conditions or an expectation that is unattainable.  This is why we work on a contingent basis for you.  We don't receive any compensation from you, our client, unless we are able to successfully conclude a transaction.
 
  Q: How do you make sure my competitor doesn't find out I'm considering selling?
 
  A: At JB&A we pride ourselves on the confidentiality statement that protects the use of all sensitive information used in making an evaluation of your company.  As part of our contract, we agree to provide you with confidentiality agreements that we secure from acquirers that express an interest in your business.
 
  Q: Am I obligated to sell my business?
 
  A: NO!  JB&A's services are non-binding. We are so confident that we will exceed your financial expectations that you won't be able to refuse a buyer's offer!  In this relationship, we take most of the risk because we provide our services on a contingency basis.  Unless we meet or exceed your expectations, we are not compensated for the work that we do to bring you an offer. 
 
  Q: What will happen to my employees if I sell?
 
  A: As a consultant, our job at JB&A is to customize a package that includes all of the contingencies that will make you feel comfortable with the sale of your company. Those contingencies can include financial return, continued employment, and the guarantee that your employees will be taken care of after the sale.  Generally speaking, employees are the most valuable asset of any company.  Most often acquirers will need your employees to continue to operate a successful business. 
 
  Q: Can I continue to work for the company if I sell it?
 
  A: Many of the buyers that we work with are looking for key individuals to continue to run the business after the acquisition. They realize your value to the company and the knowledge you have in your industry and market. The opportunity to continue to work in the organization is often a contingency that buyers consider as added value toward the acquisition of any business.
 
  Q: Will the buyer pay cash for my business, or do I have other options?
 
  A: YES...Most of the buyers that we work with are large national companies both public and private. Sometimes to find the right match for your business, we may find an acquirer that would pay for the company over time.  In individual situations, you may have the opportunity to receive compensation in cash, stock, or long term payments.  Each situation is unique.  As your representative, we use our expertise to advise you of the best alternatives.
 
 

Q: I love what I do - why would I want to sell my company?
 

 

A: It is another option for ensuring your future. The best time to sell your business is when others want it. This is when you can get the most value. Most often, the buyers want management to stay in place because they believe the entrepreneurial spirit of the owner is important to keep.
 

 

Q: Why should I look at offers for my company?
 

 

A: When entering into a contract with JB&A you are not obligating yourself to sell your company; however you may be surprised to see how a major player in your industry values your business.  With the investment that you have already made in your business through your time, effort and money, it is always wise to have an exit strategy.  Timing of an acquisition is probably the most crucial ingredient.  There is a generally a window of opportunity to sell your business.  The value that could be available today may not be there when you are ready to retire.  It never hurts to consider all of your options. 
 

 

For a no risk and no obligation consultation of your business, please contact Jerry Baker & Associates today at (888) 792-2537.

 

Contact Information

Telephone:  (913) 897-9199

Fax:  (913) 851-0678

Address: 13108 Linden Lane
       Leawood, Kansas 66209

Email: info@bakerandassoc.com

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Last modified: 02/01/10