by Kristen Sawada
Pacific Business News
Just because you run a business doesn’t mean you know
how to sell a business. That’s where the Docktor comes in.
Milton Docktor is a business broker. When Maui resident Donald Moore decided to
retire, he hired the broker to sell Kula Ace Hardware & Nursery, after having no
luck in selling the business himself.
“A business owner who wants to sell is fooling himself if he thinks he can
represent himself,” Moore says. “The ordinary business owner may be able to
sell his products, but he can’t sell himself and business. He’s not acquainted
with the marketplace.”
Docktor, president of Business Brokers Hawaii Inc., listed Kula Ace Hardware
online, piquing the interest of several buyers including California resident Walter
Taylor and his wife.
“We fell in love with Maui 15 years ago and we were kind of looking for a
way to get over here,” Taylor says.
The couple began negotiating with Docktor through e-mail, writing proposals and
bids, and checking to make sure the business was free of liens.
Four months later, the Taylors bought the business for $1.2 million from
76-year-old Moore, who searched for several years to find the right buyer for the
country locale.
“The sale was quick because after a couple of years of trying to sell it
myself, I went to Milton,” Moore says. “Because of the connections he has and
marketing [skills] we were able to secure interested parties early on.”
But although the sale was quick, the process was not a simple one. Bringing
buyers and sellers together is only the first step in completing a successful transfer
of ownership, Docktor says.
The complicated stage is providing guidance for problems that often occur during the
transition period, which can have an effect on potential sales.
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Business Broker Milton Docktor lists businesses for sale
on many worldwide directories, as well as on Business Brokers Hawaii’s site,
www.business-brokers.com
One of the challenges is educating the buyers about their new business and clientele.
“The buyer of the company, who has nowhere near the working knowledge as the
seller, might want to engage the services of the seller to stay on for some
capacity,” he says. Generally the transition period lasts beyond the sale for
six months to a year. In this case of Kula Ace Hardware, it lasted through a three-week
training period from the seller to the buyer.
Docktor says common reasons for selling a business include retirement, failing health
or a problem with a partnership or spouse. Or owners may decide to sell to spend more
time with family or grandchildren.
“These people are often in a dilemma over how to go about selling a business,”
he says. “We’ll work with their accountant and we’ll work with their
lawyers to ensure a smooth transition.”
To expedite the sales process, Docktor works with business brokers across the state,
the mainland and in other countries including Japan, Taiwan, Hong Kong, India and
Thailand to find a suitable buyer.
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Things to consider
when selling a business
In selling a business, Milton Docktor says owners should follow these steps:
• Have a mutual understanding with a broker to be sure the broker can be of
good service to the seller.
• Contact the broker for an interview and "valuation" of the
business so that the seller and broker can have a consensus on a realistic
expectation of what the business might sell for.
• Complete proper identification form and business background, which will be
translated into a comprehensive listing agreement encompassing the business
operation, value and commission structure.
• Examine the listing agreement for accuracy and return it to the broker.
• The broker and owner should collaborate on a comprehensive fact sheet to
customize a marketing plan for the business.
For more information on buying or selling a business, call (808)879-8833 or go to
www.business-brokers.com
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In addition to listing businesses online, Docktor creates a customized marketing plan,
which includes newspaper advertisements, specialty mailings and comprehensive interviews
with prospective buyers to assure compatibility with requirements of the business owner.
Docktor also works closely with owners and strives to secure the best price for a
business. “[A broker] will get the maximum amount for you. They have more exposure
to potential buyers and they can aggressively market a business,” Moore says.
Docktor charges a standard percentage rate of 10 percent with a $10,000 minimum on the
sale. •
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