American Business Masters & Investments, Inc
Commissions and Fees
ABMI charges no fees to sellers or buyers on most transactions when the business is being brokered by ABMI. We are usually paid a commission by the seller when the business is sold.
Business Owner/Seller Services
Business owners are our clients. ABMI generally works for business owners (sellers) with whom we have a Listing Agreement, authorizing ABMI to market the business assets to a ready, willing and able buyer. ABMI usually charges no front fees to most small or medium size business seller clients, and is paid a commission when the business sells.
Depending on the size of the transaction we are engaged to broker, when the business sale is completed, ABMI charges the business owner a commission of 5% to 10% of the sale price. Small and medium priced businesses usually pay ABMI 10% of the sale price, with lower commissions charged for larger businesses.
In some cases, business owners choose to engage ABMI on a fee basis. In those cases, ABMI agrees to charge a front fee, payable at the signing of the engagement, with a commission paid if/and/when the business sells, with the front fee deducted from the eventual commission. Please register with this ABMI web site to arrange to receive a quote on those services.
When ABMI lists a business for sale, we invest the money and energy needed to professionally package the listing, confidentially advertise it in various media and on the internet (without divulging the name of the business nor any other confidential information until/and/unless each buyer provides us with a promise of confidentiality), and we service the listing until it is sold, including regular consultations with the business owner during the marketing process.
ABMI has developed a unique multi-media “Buyer Discovery System” that is very successful at finding qualified business buyers.
In addition to initiating an aggressive, confidential media marketing effort, ABMI also immediately searches ABMI's proprietary data base of presently active buyers, totaling over 10,000 pre-screened prospects who have previously contacted ABMI, looking for a business to purchase.
ABMI's Middle Market/Mergers & Acquisitions Division also accepts special fee based engagements from buyers or sellers of larger businesses.
Free Business Evaluations/Pricings, And More For Business Owners
Evaluations/pricings performed by ABMI for Business Owners: ABMI performs many services during the listing engagement, including providing the business owner with a free evaluation/pricing to help determine the market price for the business. This pricing/evaluation service helps the business owner understand the "realities of the marketplace" and is based on understanding what buyers are likely to pay for a particular business.
ABMI has a high level of understanding about business values and pricing, as well as considerable experience in consulting with business owners about the various acquisitions terms that might be offered to buyers.
With proven expertise in the valuation, pricing and marketing of privately owned and closely held companies, ABMI handles each client competently and confidentially. ABMI assists in all phases of the transaction, linking initial analysis, planning, valuation, pricing, marketing, qualification of prospective purchasers, negotiation, due diligence and ongoing interaction until the transaction is successfully completed. When selling a company through ABMI, business owners benefit from a refined and proven process.
ABMI represents business owners in a wide variety of industries. Our broad base of knowledge provides the ability to assist the seller in not only pricing, but also in preparing the company for sale and facilitating a smooth transition of ownership.
Business Buyer Services
Business Buyers are our customers. Buyers typically contact ABMI, searching for low risk businesses to purchase. ABMI charges no fees to business buyers on most small business acquisitions transactions, and is paid a commission by the business owner/seller when the business sells, except for special projects at the buyer's request, when ABMI might be asked to represent a buyer in a transaction. However, ABMI works with most buyers on a no-fee basis.
Some buyers elect to engage ABMI on a retainer basis to conduct a Professional Acquisitions Seach Campaign, with the buyer as our client. In such cases, at the buyer's option, ABMI represents the buyer in approaching various companies on the buyer's behalf. The buyer generally also pays ABMI a commission upon successful completion of the buyer's acquisition, with the retainer being deducted from the final commission paid by the buyer. For a no-obligation quote on this program, please register with this ABMI web site.
ABMI works with all buyers to help them not only find their “ideal deal” acquisition, but, when found, we volunteer to help Buyers arrange the acquisition financing (at no extra cost to the buyer/borrower). ABMI has helped thousands of business buyers arrange financing, on hundreds of millions of dollars of acquisitions, of all sizes, all prices, over the almost 30 years we've been brokering businesses of all kinds/types.
And, ABMI works with the buyer's lawyer, accountant and other advisors to assist in a smooth, “clean”, low risk conveyance of the business assets.
Accomplishing The Business Buyer's Goals
We begin the buyer's search by consulting with the buyer about their “ideal investment”, helping the Buyer identify not only the kind of business they are likely to buy, but also the size business they can afford, and which investment would likely deliver the financial and career goals of the buyer and his/her family, and, just as important, we share with the buyer the “realities of the marketplace” about how businesses are priced/evaluated, and we invest the energy needed to help the buyer achieve the Return On Investment and Equity Build Up goals of the buyer.
The search process includes showing the buyer the many businesses for sale that ABMI presently has listed, and includes surveying our Associates for information on listings they are in the process of bringing to market at any given time.
ABMI agents, consultants and advisors specialize in patient, professional services to business buyers, including working with the buyers' accountant and attorney to insure that all buyers receive adequate advice during their acquisition journey.
Free Financing Assistance Is Our Specialty
ABMI specializes in providing assistance in arranging the financing needed to make acquisitions possible. Over 80% of the thousands of transactions we've brokered since 1982 have been completed with financing arranged by ABMI associates. These free financing assistance services include:
- ABMI provides acquisition financing advice and services at no extra charge to the buyer and seller.
- ABMI creates and produces the complete preliminary Loan Request Packet that’s used to show lenders the merits of the project.
- ABMI canvasses lenders in our extensive Lender Data Base, and makes the initial contact with the lenders on behalf of the buyer and seller, to discover lenders who would be interested in financing the project.
- ABMI delivers the preliminary Loan Request Packet to each interested lender.
- ABMI follows up with each lender.
- ABMI introduces the buyer/borrower to interested lender(s).
After the buyer choses a lender, ABMI assists the buyer and seller with the completion of loan documents needed, including the filling out of SBA or other government loan applications and other documents required.
Managing The Due Diligence Process At No Extra Charge
ABMI volunteers to manage the due diligence process, including working with the buyer's and seller's attorneys, accountants and other advisors; assisting the seller in the clearing of accounts payable and other obligations; assisting the parties with equipment inspections, EPA surveys, appraisals, etc. (when applicable); and the other important details leading up to the buyer's take over, including coordinating the final arrangements for financing with the lender, the buyer and seller. ABMI's unique and ultra professional due diligence/closing services are provided to the parties at no extra charge, and are provided as an accommodation to the buyer and seller.
Entrepreneurs (business buyers and sellers) who are considering a business acquisition should register with this ABMI web site to arrange to receive information which can help you investigate how you might buy or sell a business enterprise with minimum risk and maximum benefit to you.