Business Development Solutions
The Merger & Acquisition Resource for Growing Companies
Articles for Exit Planning
· When is the Best Time to Sell Your Company? – What is the Opportunity Cost of Not Selling? A business owner only has so much time, energy, and capital available and those resources invested in a business are not available for him/her to use, enjoy, or invest in other ways.
· Every Business Owner Needs an Exit Plan – Without an Exit Plan you are less likely to have as successful an exit as if you had a plan.
And Can Make it Very Difficult to Sell Without Creative Deal Making – The business buyer's perception of risk and therefore his/her confidence in the likelihood of your business making money for them under his/her ownership is affected by the Lack of Transferability and Excessive Concentration.
Articles for Sellers:
· How to Maximize the Price of a Business through a Confidential Business Review - Some businesses do not sell, and some receive less than they should - all because they do not provide the information needed by potential buyers.
· The Process of Selling a Company – According to Business Broker industry data, it takes on average six to twelve months to sell a business. This article explores the many tasks that are performed and gives examples of the relative time that may be devoted to each task.
Articles for Potential Buyers:
· Successfully Acquiring A Business - In any one year, very few of the many people and companies trying to buy a business are successful in actually buying one. Find what steps should be taken to acquire a business.
· Eleven Potential Deal Killers To Spot Early - Acquiring a business can take a substantial amount of time. Therefore you should conduct a pre-due diligence investigation to identify any potential deal killers before very much time and expense have been committed. You should have a reasonable level of comfort that potential acquisition candidates fit your criteria and have a reasonable chance of being acquired successfully. These issues also affect the price that you may be willing to pay for a business.
Articles for both Buyers & Sellers:
· Seven Things that Determine the Value of a Business – There are many rules-of-thumb ways to value businesses. But, if a Business is sold at a value estimated by a rule-of-thumb that is too low, the Seller gives up money. If a Seller requires a Business price based on a rule-of-thumb that is too high, the Business will not sell – and even if a buyer agrees to pay a high price, a bank is not likely to finance it.
For a Potential Buyer to buy a Business, the Adjusted Profits* of a business MUST be high enough to support three things:
1. The debt service
2. A reasonable salary and benefits for the new owner
3. An Internal Rate of Return on the Equity invested by the Buyer to buy the Business.
Need a Speaker for Your Group?
As an experienced Business Broker / Merger & Acquisition Intermediary, Jay Whitney has spoken to CPA groups, entrepreneurial groups, and groups of business executives whom have recently been downsized. He is available as a speaker to give informative talks on "The Seven Things to Know before buying a Business", "How to Value a Business", "What to Look for in Due Diligence", "Is the Market Timing Right to Buy or Sell a Business?", or other topics on business sales or acquisitions. If your group is looking for a speaker, please call Jay Whitney.
If the sale of your business could be years into the future, but you want some key strategies to "Maximizing the Value of Your Private Company", please send us an e-mail. This seminar is scheduled once a sufficient number of participants have expressed interest. This seminar is intended for mid-sized privately held companies to provide insight into the steps involved in selling a company, the types of Value Enhancement Opportunities that could be present, and what should be done to prepare for a unsolicited offer or a sudden change in personal circumstances that lead to the sale of the/your company.
In presentations to business owners, the speech will remind them about the obvious, but overlooked need, to plan ahead for the transition of his/her business to another owner. It covers the procedures for a transfer/sale and the pros and cons of different types of buyers – should the business be sold to children, employees, or third parties.
Call if you have any questions on the above articles, to find out more about buying or selling a business, or if your group is looking for a speaker.
Business Development Solutions
Jay Whitney, President
240 Kirkton Knoll
Alpharetta, GA 30022