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BUSINESS BROKERAGE
We understand that selling your business
can be the single most important thing you do with your
company. As a business owner you need to feel comfortable,
both personally and professionally, with the firm you hire
to work on your behalf on this most important mission. Discussed
below are two important subjects regarding the engagement
of a business broker. We have the experience and expertise
to successfully help you execute your exit strategy and
realize the full value of your business.
WHY USE A BUSINESS BROKER
There are many good reasons to use
a business broker instead of trying to sell the business
yourself. Some of the more important ones are:
- Confidentiality - We protect
the identity of your business from customers, suppliers,
bankers and opportunistic competitors.
- Valuation Experience -
We can help you determine a realistic selling price and
we have the expertise to market and explain that value
to potential buyers.
- Preserve Value - We lead
and manage the business sale activity so that you, the
owner, can continue to focus on operating and preserving
the business value.
- Buffer Negotiations - We
work for you and we do that to the best of our ability.
However, we do not get caught up in the emotional issues
that often accompany negotiations. It is better for you
to have an impartial buffer in order to provide time for
reflective answers to buyer questions and to keep a big
picture focus on maximizing value.
- Marketing - We have access
to many different channels to market your business nationwide
including other M&A professionals, numerous M&A publications
and websites, industry specific mailing lists and other
broad based and/or narrowly focused avenues to put your
business before the group of buyers most likely to enter
into a transaction to buy your business.
- Outside Professionals -
We work with your lawyers, accountants and financial advisors
in order to coordinate the selling process. Our expertise
allows us to prepare and respond to certain aspects of
the engagement that these outside professionals would
have to do otherwise, thereby saving you outside professional
fees.
- Faster Closing - Our primary
focus is on selling your business, not running it. We
are working full time to market it, negotiate the transaction
and close the deal. As such we are usually able to sell
your business faster than you can do it as the business
owner.
STANDARD BROKERAGE SERVICES
There can be many facets to a business brokerage engagement.
The main focus of our service is to
lead and manage the business sale process. The services
we provide as part of that process include the following:
- Basic Exit Planning - If
you have not done so already we help you sort out your
personal and professional goals. We work with you to sort
out business preparedness issues such as the condition
of required due diligence records and other issues that
can hinder or derail a possible sale. We can also help
you plan your personal post sale business activities.
- Target Price - We perform
a business valuation to determine a realistic selling
price and to gain an understanding of the value to be
marketed to prospective buyers. We also interact with
your outside professionals to ensure that the net proceeds
of the sale (target price less professional fees and taxes)
meet your financial requirements.
- Marketing Material - We
assemble and prepare various marketing materials. These
include a blind "teaser" that describes the
business without revealing the identity or specific location.
It also includes a detailed confidential offering memorandum
that thoroughly describes your business. This memorandum
includes historical financial information, "recast"
income information that adjusts for discretionary owner
expenses, and projections of future performance if warranted.
- Prospect Screening - We
work with you, the owner, to establish an approved list
of people to send the general blind teaser. This ensures
that no marketing info is deliberately sent to parties
that you do not want to be involved with.
- Qualify Buyers - We qualify
prospective buyers who respond to the general teaser by
obtaining background and financial information from them
to determine that they have the ability and resources
to execute a transaction.
- Ensure Confidentiality
- We obtain a signed confidentiality agreement from qualified
buyers and only then do we provide a copy of the detailed
confidential offering memorandum.
- Due Diligence - We help
you respond to requests from prospective buyers for due
diligence information.
- Lead Negotiations - We
lead the sale negotiations while at the time obtaining
your input and keeping you informed of the status of the
various parties and negotiations.
- Complete Closing - We work
to obtain a letter of intent and/or signed purchase and
sale agreement. We then work with you and your outside
professionals to close the deal and get you your money.
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Professional
Perspective
PRESERVING VALUE
Selling
a business to maximize value takes time. It
usually takes 6 - 12 months or longer from
the start of the process until closing. During
that time a business owner needs to focus
on running the business and preserving its
value. Poor business performance during the
selling process is one of the worst things
that can happen. It calls into question the
value behind the targeted selling price. Poor
performance can cause a trust issue because
prospective buyers may come to believe that
the business is for sale due to undisclosed
problems. Business owners need to focus
on running the business and preserve value
in order to maximize their return from the
selling process.
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