Penny-wise & Pound Foolish!
FAR & AWAY, THE BEST PRIZE THAT LIFE OFFERS IS THE CHANCE TO WORK HARD AT WORK WORTH DOING.
– THEODORE ROOSEVELT
MBA Business Brokerage, Inc. is a professional firm of business intermediaries with a broad range of technical skills. We assist in the sale and acquisition of a wide range of privately owned businesses. Serving as the business intermediary, MBA Business Brokerage, Inc. has sold hundreds of privately owned properties since 1981 and has provided third-party support in the areas of marketing, negotiating, and closing of successful sales. Business acquisition opportunities exist for both corporate and individual buyers, and we support the buyer in determining their financial capabilities and areas of interest. Through many years of experience in business sales, we have established working relationships with experts in the field of valuing businesses. Whether a business is for sale or whether an evaluation is needed in seeking financing, setting a price for a buy/sell agreement, or estate purposes, we can give expert advice.
A Brief History of MBA Business Brokerage, Inc.
A company that has specialized in selling businesses since 1981!
Peter Vadas is the President and broker of MBA Business Brokerage, Inc. The company started in 1981 as MBA Realty, Inc. In April of 2011, the corporate name and DBA were changed to MBA Business Brokerage, Inc. (MBABB). The name change was simply to better reflect the emphasis of this business. That is, selling businesses. We do sell some commercial real estate when it is tied to the business that we are selling. Prior to 1981, Mr. Vadas owned two successful businesses. He utilized the services of a business broker to sell one of the businesses. "Having had practical experience as a successful business owner, Mr. Vadas was intrigued by the prospect of selling other peoples, successful businesses."
Peter began his career working for Fortune 500 Manufacturing Companies including (Warner & Swasey, Cleveland Pneumatic Tool, Cleveland Trencher, Lear Siegler, and National Screw) as an Industrial Engineer and Production Superintendent; his initial start in business brokerage was working with manufacturing companies, but soon learned that to specialize in any one segment of the business brokerage was not the right business model.
He began with a national business brokerage franchise called V. R. Business Brokers in 1981 as a sales associate. It was a successful franchise with 300 offices throughout the US. He was the top producer in his office for eight consecutive years. He then decided it was time to start his own business.
MBA Business Brokerage, Inc. is comprised of 5 licensed independent agents in addition to the Broker, Peter Vadas. We are considered general practitioners. This means that if it is an existing business that makes money and is ready to sell, we will assist in getting a valuation of the business, creating a package for that business, making it ready for selling, do the marketing to find that strategic buyer, and assist in the negotiations, bringing it to the final conclusion of a closing. In other words, we specialize in selling existing businesses where the owner is ready to retire or is moving on to new ventures. In some cases, a key member of the organization may have passed away, or there is a divorce that necessitates the sale of the business. Monalea Hutchins is the Office Manager. She joined MBA Business Brokerage in 2007 and has had an extensive career in teaching and business.
Our niche in business brokerage sales are the businesses that are typically valued at under ten million dollars; this comprises about 90% of our transactions; the balance is a commercial real estate valued from $500,000. to $5,000,000. Often times this is in conjunction with the business that is being sold.
The types and sizes of the businesses that we represent vary. We have represented the following types of companies: manufacturing, wholesale/distribution, accounting firms, retail, wholesale, commercial printing, health care, as well as restaurants and bars.
Before we take an assignment to sell any business, we ask for a minimum of three years of tax returns, financial statements, year-to-date financials compared to the same period for the previous year, and a history of the ownership and the principles of the business. If a lease is involved, we ask for a copy so that we can assist potential buyers in this aspect of the transaction. All of this information is required to be able to establish the value of the business. Establishing a realistic value is essential in getting a potential buyer to buy.
Our expertise is helping to determine the fair market value of a business based on the financial history of the company. We use Nationally Recognized Appraisers that specialize in business appraisals. They are CPAs with the following credentials, (ABV) Accredited in Business Valuation, (ASA) Accredited Senior Appraiser, (CM & AA) Certified Merger & Acquisition Advisor, (MCBC) Master Certified Business Counselor. They have the credentials to verify their opinion of value in any court in the USA. Since it is a third party, they do not work on a contingency fee. Their fee ranges from $3,000.00 for a small business to $20,000.00 for a large business.
MBABB will handle the most important aspects of the transaction. The most important ingredient we add to the equation is to assure the seller that when the business goes to market, it will be at the highest achievable price. In addition to helping with the appraisal process, we focus on providing the appraiser the details about the business that is not on the financial statements or the tax returns. Items that may have added value to a buyer to achieve the highest and best price. With our experience, we know what buyers are looking for when buying a business. These are the things that we will accentuate when we give the information to the appraiser. The costliest mistake that can occur is to have an owner seller of a business leave money on the table.
Peter Vadas, the President of MBABB, is also the past President of the North East Ohio Chapter of the Ohio Business Brokers Association from 2005-2013; the OBBA is a professional group that specializes in business brokerage. You can log onto www.obba.org to see that website. It lists all of the members as well as the businesses that are listed by the members on our site. This is a great asset. In addition to having MBABB working for the seller, there are 50 other qualified brokers that we will co-broke with on any listings. That is the reason that we have a high success ratio of getting deals done.
The typical history of sales that we have accomplished shows very favorable results. Historically we achieve 10%, 20%, or even 30% higher selling price than individuals that have sold their business on their own without professional representation. It would be foolish to attempt selling your own business without assistance from a professional. As Benjamin Franklin said, at times, smart people are penny-wise and pound foolish.
Please keep this in your file for reference. Sometimes you may come into contact with people who can use our services for either buying or selling a business. In that case, we appreciate the referral.
Peter Vadas, President and Broker