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Buyer- An Individual showing interest in
a product or service. One who purchases goods or services; also called
a customer. A consumer who makes purchases for his or her
own use or purpose. A professional buyer makes purchases on behalf
of a retailer or wholesaler.
Marketing Efforts- the promotion of a product
or service. Making the public aware of what an organization does or
offers.
Industry Specific Target Market- locating
a specific industry that best meets the expectations, specialties,
and financial capabilities of the buyer.
Past Business Prospects- Any former buyers
or seller that have previous dealings with the company.
Internet Websites- offers great opportunity
for marketing, and finding potential buyers and sellers
Networking (CPA’s, Brokers, Attorneys)-
Using resources available to meet and interact with new individuals
with the goal of creating a professional relationship that can be
called upon in the future for business advise, or opportunities.
Confidentiality Non-disclosure- Protecting
your confidential information or intentions revealed during discussions,
proposals or negotiations.
Coordinate Initial Appointment- To arrange
a meeting between a potential buyer and broker or seller to learn
the basics about what each side is interested in accomplishing through
the other party. Traditionally these meeting include discussion about
financing, marketing, or procedures that each individual will attempt
to fulfill.
Present Business Prospectus- A formal summary
of a proposed venture or project. A document describing the chief
features of something, such as a business for prospective buyers,
investors, or participants.
Explain & Emphasize Valuation- The Explanation
to a potential buyer how the company estimates the value of property,
usually required when a property is sold, financed, condemned, taxed,
insured, or partitioned. An appraisal is not a determination of value.
Three approaches are used. To produce an accurate resale price for
a residence, appraisers compare the price of the property to the prices
of similar nearby properties that have sold recently. For new construction
and service properties appraisers look at the reproduction or replacement
cost of the improvements, less depreciation, plus the value of the
land. For investment properties an estimated value is based on the
capitalization of net operating income from a property at an acceptable
market rate.
Educate Buyer on Sales Process- A sales
process is a systematic methodology for performing product
or service sales. The reasons for having a sales process include seller
and buyer risk management, achieving standardized customer interaction
in sales and scalable revenue generation.
Specific steps in sales processes vary from company to company but
generally include the following steps:
1. Sales Lead
- Qualified prospect
- Need Identification
- Proposal
- Closing
- Deal Transaction
Level of Interest- After completing the sales
process with the buyer a level of interest must be evaluated to further
the possibility of a closing being made on a product or service. Once
a level of interest has been established the broker then has the opportunity
to “bridge the gap” between the two sides in order to
make progress with the deal.
Meeting of Minds- A personal meeting between the buyer and seller
in which possible terms, contingencies, and other business process
steps are reevaluated and discussed.
Make Offer- To put forward for consideration a proposal for the sale
of a product or service.
Price- The actual dollar amount specified
in an offer made to the buyer.
Terms- Specifications outlined by both sides
that will be followed in order to complete a transaction. Incompletion
or breaking of these specifications could result in termination of
a contract and possibly may include legal issues
Contingencies- An event that may occur
but that is not likely or intended. A possibility that must be prepared
for; a future emergency. The condition of being dependent on chance;
uncertainty. Something incidental to something else
Present Offer- Once an offer has been made and countered a final compromised
agreement will be reached in regards to pricing and terms.
Negotiate win/win- Explain how continuing
on with the business process will only benefit both individuals.
Financing- The service that will assist the
buyer in finding a way for funds to be provided for business activities,
making purchases or investing. Financial institutions and banks are
in the business of financing as they provide capital to businesses,
consumers and investors to help them achieve their goals.
Remove Contingencies- Once issues arise that
may hinder the final deal the issue must be researched and dealt with
accordingly.
Packaging Transaction- An agreement
between a buyer and a seller for the exchange of goods or services
for payment.
Owner Finance- The amount of financing that
will be due from the proprietor of the business.
Financial Institution- Government agency or privately
owned entity that collects funds from the public, and from other institutions,
and invests those funds in financial assets, such as loans, securities,
bank deposits, and income generating property. Financial institutions
act as intermediaries between saver and borrowers and are differentiated
by the way they obtain and invest their funds.
Broker- One that acts as an agent for others, as in negotiating
contracts, purchases, or sales in return for a fee or commission.
Business Valuation- determining a price based on an evaluation
of the tangible and intangible assets and cash flow of the company.
A step-by-step process of evaluating financial statements, industry
trends, and qualitative factors.
Pricing- Price is perhaps the most important of the four
Ps of marketing, since it is the only one that generates revenue for
a company. Price is most simply described as the amount of money that
is paid for a product or service. When establishing a price for a
product or service, a company must first assess several factors regarding
its potential impact. Commonly reviewed factors include legal and
regulatory guidelines, pricing objectives, pricing strategies, and
options for increasing sales.
Listing Agreement Exclusive Employment Contract- a contract
between a broker (or his/her agent representatives, acting in the
broker's name) and a seller or sellers of real property to give the
broker the right to offer the property for sale.
Marketing A Business- A service that will include pricing,
promotion, and placement all for the purpose of increasing exposure
of the product being sold.
Seller- The individual who is interested in selling their
business entity.
Initial Meeting- The first encounter between the broker
and seller. At this meeting a mental picture is drawn by offering
the possible benefits through the services of the broker.
Valuation Prospectus-
- Profile- A market profile describes the prospective buyers or audience for a product or service in terms of the demographic and/or psychographic characteristics of the individuals constituting the market.
- Tax Returns- General name of the form used to file taxes payable to a federal or local government. Included on the tax return are such items as gross income, allowable deductions, tax credits, and tax due.
- List of Assets- A resource having economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. A balance sheet item representing what a firm owns.
- Lease/Terms- A contract granting use or occupation of property during a specified period in exchange for a specified rent. The term or duration of such a contract.
- Industry Analysis- A tool that facilitates a company's understanding of its position relative to other companies that produce similar products or services. Understanding the forces at work in the overall industry is an important component of effective strategic planning. Industry analysis enables small business owners to identify the threats and opportunities facing their businesses, and to focus their resources on developing unique capabilities that could lead to a competitive advantage.
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