Why No Asking Price?
Buyer Qualification
Robbinex’s Buyer Qualification Program identifies serious, enthusiastic and dynamic individuals and corporations that are ready for a new challenge. This process verifies that buyers possess the financial resources to not only purchase a business, but to make it a profitable and rewarding venture.
Qualified buyers must provide financial capability information and sign Robbinex’s Confidentiality Agreement which clearly sets out the rules of engagement for both the buyer and seller. This agreement also provides protection for the seller, the business itself, and, of course, the successful buyer.
The Robbinex® NAP™ (No Asking Price) Program
Businesses offered for sale by Robbinex do not have an asking price. Qualified buyers understand that the value of a business is more than just dollars and cents. Its value is determined by a wide number of factors including:
- Taxation and cash flows
- Earn-outs and royalty programs
- Leases vs real estate ownership
- Asset vs share (stock) sale
- On/Off balance sheet considerations
- Non-compete agreements, and/or management/employment consulting contracts
- Synergistic considerations
Their experience has proven that these factors cause the value of a business to be dynamic rather than static. Robbinex has learned that qualified buyers prefer to set the transaction structure and market value of a business as they see it. Setting an asking price sets the transaction structure, which restricts the buyer’s flexibility and creativity in structuring a transaction that is best for both parties.