This may surprise you, but your business may not be salable in its current state. Why waste your time and money if the likelihood of selling your business for the price you expect is not achievable? If we don’t think your business is salable in its current state, we will advise you on what you need to do to make it salable. If your business is salable, we can help you decide whether you should sell it yourself, use us, or another business broker or M&A intermediary.
Some business owners are better off selling the business themselves (For Sale By Owner – FSBO). In fact, the majority of small businesses sold under $500,000 are FSBO. We can help you navigate this process so you don’t go down a bunch of blind alleys, because it is also a fact that 70% of FSBO’s fail to achieve a successful transaction. If you would be better off using a Broker or Intermediary (they are two different animals of the same color), we may not be the best firm to handle your assignment — depending on your industry, location, time frame and objectives — and depending upon our current work load. We would recommend the best available professional for your situation and make a qualified introduction.
It’s a simple fact that businesses that are priced right sell more quickly and put more money into the seller’s pocket. The biggest mistake that sellers make is to price the business too high, despite our best counsel. It can actually depreciate more in the process! We’ll help you get the best possible price — that’s how we get paid. Our interests are aligned on that score. Unlike most brokerages, we come from technology companies. We have successfully sold companies that have ZERO revenue. We know how to value, package and sell intellectual property. We don’t just look at the balance sheet and income statement. You have a lot of blood, sweat, and tears invested in your business. It’s your baby, we understand, we’ve birthed our own and then became empty-nesters. We’ll do our best to value it right and justify the price to interested buyers.
To maximize your valuation and ensure a smooth selling process, we counsel you on how to improve Revenue, Earnings and Valuation (iREV). This is a proven exit planning and preparation system that can fetch you a much higher price than you might get otherwise. At a minimum, iREV can dramatically increase the odds of a successful transaction and shorten the time it will take to sell your business. In the process of improving your business and getting it ready to sell, we identify the most likely buyers and their hot buttons.
The two most important tools for packaging your business are the TEASER and the SELLING MEMORANDUM. The teaser is anonymous and does not identify the name or location of the business. It communicates the central value proposition and why prospective buyers should be interested. After a qualified buyer signs a confidentiality agreement, they receive the Selling Memorandum (aka prospectus). This document communicates all of the essential elements for making an offer. We are experts at writing both of these documents!
There is an art and a science to marketing and selling a business. We don’t just throw it up on the MLS and M&A Exchanges, then hope for the best. We have relationships with corporate buyers looking for acquisitions, and with private-equity groups. We know well-healed entrepreneurs who cashed out of their last companies and are now sniffing around to buy one. And of course, like many brokers, we have access to a database of prospective buyers. We can assure you of one thing: to sell your business we won’t use a shot gun. We will use a high precision rifle to target the most likely and qualified buyers.
Reaching and enticing qualified and motivated buyers for any particular opportunity requires an outbound effort. We are experts at doing this. We have an amazing Rolodex, access to proprietary databases of buy-side professionals, and memberships in organizations that business buyers also belong to. This is one of the important things that distinguishes main street business brokers from M&A pros. Main street brokers rely almost solely on inbound inquiries, after posting the listing on the MLS like BizBuySell. M&A pros rely predominantly on identifying, profiling and then reaching out to the most appropriate buyers for the business.
Once we get an offer you are happy with, this is always where the rubber meets the road — where the wheels can fall off. Navigating this process depends on knowing the personalities, motivations and idiosyncrasies of the buyer — and his or her counsel. It’s a bit of a dance to be honest. We do our best to facilitate an efficient and smooth due diligence process. Having been sellers and buyers ourselves at one time, we know how both sides think and where the traps might be. Our job is to get you to the closing table without losing your sanity, so you can enjoy the fruits of your labor.
M&A transactions in the lower-middle-market can involve a complex array of issues. Any one issue has the potential to torpedo the deal, even AFTER the purchase agreement has been executed by the parties. Some transactions involve seller financing (notes), earn outs and/or stock swaps. If employees of the seller are going to be employed by the buyer post-acquisition, there are a host of integration issues. Our services don’t stop when the deal is signed. We stay involved to ensure the seller receives the full value and the buyer is able to fully leverage and capitalize on the assets and people acquired. Some deals are also structured as mergers or joint-ventures that require additional capital and partnerships. We can assist with appropriate introductions to venture capital and private equity groups interested in funding the merger or acquisition, so that the combined companies can grow faster and better together.
We use a proven and proprietary process to expedite all of our assignments. Download this High-Level Overview. Call for free consultation. 1-844-ExitBiz.