- Confidential / Comprehensive Business Reviews (CBR)
- Country Assessment Models
- Franchise Disclosure Documents ("FDD")
Click on the service below to learn more.
Also known as "Broker's Opinions of Value" (BOV) or "Calculation Reports", Russell performs independent valuations for a consulting fee. A valuation includes not only Asset, Income, and Market Valuations but also analysis on Financial Health Ratios.
Note: These valuations are not appraisals, and Russell is not a USPAP certified business appraiser. Russell is also not a CPA.
For Sellers, Russell uses this valuation to both guide the Seller toward choosing an appropriate listing price as well as to guide Buyers through the logic of understanding the value so that negotiations can be made on assumptions (reasonable) rather than merely price (unreasonable). Sellers with a 3-5 year exit planning strategy may choose to get a valuation performed annually to help establish goals for achieving the optimal sales price. The consulting fees can also be credited toward the commission on the sale of a business* if you decide to list your business for sale through Russell and if it sells (according to the International Business Broker's Association, as of 2018, only 2 of 5 listed businesses actually sell, the #1 reason being that businesses are overpriced).
For Buyers, a "benchmark" valuation is recommended because valuations for multiple businesses may be cost-prohibitive. A "benchmark" valuation is a valuation performed on industry financials in a specific sales class of an industry (e.g., distribution businesses generating $1MM-$2MM in sales annually). Buyers find these types of valuations useful because it helps them to prioritize a set of potential purchases. Buyer's with unlimited resources will not also need a regular valuation performed on their own business. However, it is recommended that buyers with limited resources (or buyers who are not accustomed to using debt but wish to acquire competitors) get a regular valuation for no additional cost in order to identify purchasing limitations and financial health strategies.
Russell is also happy to perform independent valuations for
- SBA lenders (who do not need an appraisal)
- CPA's and accountants (coordinating exit planning strategies for their clients)
- Lawyers (divorce, succession, injury, foreclosures)
- Commercial Realtors (who want to try to list the business on their own)
- Investors (who are comfortable with the business buying process)
* The consulting fee is only credited toward the commission on the sale of a business, excluding the value of the real estate which may be a separately calculated commission fee.
The Confidential / Comprehensive Business Review (CBR) is the single most important document for buying or selling a business. Whereas a valuation might be 20 pages long, a CBR will be 40-70 pages long.
For Sellers, the Confidential Business Review will answer about 90% of questions asked by buyers before a buyer makes an offer and enters the due diligence period to verify the information in the CBR. Overall, the primary benefits of the CBR is that it presents the information about a business for sale (1) in a professional manner and (2) a broad amount of information in (3) a consistent manner (4) over time (businesses, on average, take about 230 days to sell, according to Deal Stats Quarterly Reports 2018 and the #2 reason why businesses don't sell is that they don't make it through the due diligence stage, mostly because Sellers are reluctant or slow to disclose important information).
For Buyers, the Comprehensive Business Review is great for buyers who want to perform pre-due diligence on a business but a Seller is not yet represented and the Seller is reluctant and or slow to disclose important information that the buyer needs to analyze. This service also collects the information to be presented in an easy to read format altogether and all at once instead of piecemeal.
Russell charges a consulting fee to create a CBR before listing any business for sale. This consulting fee is credited toward the commission on the sale of the business* if you list your business for sale with Russell and if the business sells. For buyers, the fee can be credited toward the commission negotiated to be paid by the seller, solely by the buyer, or a combination of the two.
Russell is also happy to create CBR's for investors and Commercial Realtors who would prefer to list their businesses for sale on their own.
* The consulting fee is only credited toward the commission on the sale of a business, excluding the value of the real estate, which may have a different commission.
Country Assessment Models (CAM) are critical and comprehensive reports made for investors that are or may soon become involved in international transactions.
These investors may include:
- Foreign buyers interested in purchasing or selling a business in the United States
- US Citizens interested in purchasing or selling a business outside of the United States
Russell charges a consulting fee for creating a CAM, and this consulting fee may be credited toward the commission paid by the seller of businesses (unless a buyer is willing to pay some or all of the commission on the purchase of a business). *
Russell has a MBA in Financial Decision Systems with a Certificate in International Business. Russell is also a Certified International Property Specialist (CIPS), which is a designation offered by the National Association of REALTORS that demonstrates competence and interest in international transactions.
Russell has lived and worked on 3 continents, traveled to +30 countries, and studied 5 languages. While he is not an expert in the intricacies of doing business in any particular country, Russell's passion for international business ensures a comprehensive approach to analyzing and presenting important information about international business.
* The consulting fee is only credited toward the commission on the sale of a business, excluding the value of the real estate.
The Franchise Disclosure Document (FDD) is required for anytime you sell the "rights" to use the name and likeness of a business that include any unique requirements, particularly requirements of operation and requirements of investment capital. The FDD must be registered with each state's regulator for securities and exchange commission.
Russell charges a fee for the development of the FDD and will file it for you after it has been reviewed by an attorney who may also file it for you. The fee may be credited toward future commission earned on franchise fees.