The Value of Business Sale Services.
When sellers prepare to sell their business, some are quick to take a defensive role relative to the buyer. After all, buyers conduct the due diligence, buyers make the offer, buyers request the necessary financial information, buyers make demands during negotiations, etc. The subservient role can be a difficult phase of the business sale and acquisition process. The seller feels like they have a good business to sell, and the buyer is being picky and scrutinizing. But in a business sale and acquisition buyers have rights, too. They have a responsibility to themselves and to their lender to protect and defend their interests and investment.
Sellers Don’t Underestimate Your Power!
The majority of business owners sell a business only once in their lifetime. But a strategic, corporate or equity seller, is likely to have been involved in quite a few business sale transactions – some that worked and some that did not. What does this mean for the business seller? It means that sellers selling their business could have an experienced team of mergers & acquisitions advisors (business sale services) helping them through a business sale or business transaction process.
Properly Preparing for a Business Sale
• Making a successful business sale is not like selling real estate. Confidentiality is, in all cases, critical. A seller does not want employees, suppliers, and customers/clients to be aware of a possible sale. Sellers to great lengths to protect the confidentiality of their business information. When potential buyers inquire about a business for sale, the seller typically shares very little information about the business for sale.
• The typical business sale process is created in a way that cannot distract the owner(s) from managing the day-to-day operation of the business. Buyers need to be very sensitive to the seller’s time and concern for confidentiality. It is very likely that a seller is working with multiple acquisition candidates and it is safe to assume that the seller is easily spending 20% of their typical work week on business sale and acquisition matters.
• Some deals come unraveled when a bank requests that the seller increase their seller financing and or that the seller note be subordinate to the terms of the banknote. Buyers should verify early-on in the deal about the bank on seller financing All acquirers should be able to show the seller they have the financial resources to make the deal. Also, as a buyer be prepared to show financial statements to prove your cash injection into the business acquisition. should be made available.
• Due diligence for a business is the most important part of business acquisition. The seller will perform their own due diligence on you as a buyer. Likewise, as a business acquisition candidate, you should perform due diligence and self-assessment of your skills and capabilities to make sure that you can successfully operate the target business.
Buyers need to be evaluated to make sure they are a good fit for the business, its customers, vendors, and employees? Buyers need to be scrutinized as follows:
• Do they have experience in the business industry?
• What are the buyer’s goals in acquiring the company?
• It is extremely important to screen a buyer.
• Sellers should employ qualified business sale services advisors to assist them with the sale of the business.
• The chemistry between a buyer and a seller is important. Does the buyer communicate well?
• Are questions openly asked and answered by both parties?
• If the seller is staying with the company for an extended period of time, it’s also critical that he/she is comfortable not only with the buyer but also with the new management team if it’s not the people who are doing the deal. It is very important to carefully consider the skill and knowledge a professional Business Sale Services Advisor can bring to the table. Without utilizing their services, less-than-ideal circumstances can take place. The seller may receive less than a fair deal on the sale of their business or be involved in a difficult sale experience.
Professional Advisor such as Business Sale Services & Business Intermediaries, Attorneys and Accountants can bring much value to the whole business sale process.
We know that it is important to sell a business that matches a buyers skill sets and personal goals. Therefore, a business seller will benefit from our knowledge of contracts, accounting, business, deal structuring, mergers and acquisitions and negotiation skills. A business seller can depend on our experience and expertise to help you evaluate and perform detail due diligence of a business sale. We will also professionally value the business and help a seller sell a business at the best possible price and terms. Our services include standard and custom programs or hourly consulting. The following is a shortlist of business sale services and solutions.
The Value of Business Sale Services
American Fortune Mergers & Acquisitions helps to successfully sell a business. Here is how we assist individuals and companies to sell a business successfully:
• Development of business sale parameters
• Screening of potential buyers
• Professionally value the business
• Negotiation and structuring of a deal
• Seek out Innovative, non-traditional financing for a buyer
• Ongoing marketing of the business sale
• Strategy development and of due diligence oversight
• Deal structuring
• Tax reduction structuring on the sale of the business
Points for a Successful Business Sale
Although a great deal of time, talent, and money can go into making sale, the transaction is not an end in itself. A successful outcome to a business sale process begins with the formulation of “value drivers” and benefits from the actual transaction which extend beyond the closing until the desired benefits have been obtained by the buyer.
Companies seeking to formulate value drivers and financial criteria in mergers & acquisitions look much deeper at the pre-acquisition and post-acquisition picture. They ask critical question: What exactly do we want to accomplish through the growth strategy of Mergers & Acquisitions?
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