Business Sale

Thousands of sources of equity capital in the U.S. and around the world are willing and able to pay top dollar for great companies, leave the tenured management in place, provide meaningful ownership to the manager or management team that remains, and mentor and support the new owner-managers in continuing to grow the business. This is the type of transaction Acquisition Advisors specializes in and is proud to bring about.

Acquisition Advisors talks about win-win transactions. That is, business purchase/sale transactions that result in a “win” for the owner-seller, buyer, employees and community. By “community,” we mean where the company operates.

When the right buyer is found, the business has its greatest opportunity to thrive. This, of course, is good for the community as it continues to employ, provide livelihoods and contribute to the community’s tax base.

Most successful business owners are good people. Caring people. I’ve worked with thousands of them.

Jerks tend to implode, eventually. Traits of care, honesty and integrity aid the business owner in surviving and succeeding over the long haul, so most who “make it” are “good folks,” as we say in the South.

Yes, most successful business owners are also driven to achieve material and financial success, but such is not the extent of who they are. They care about the people around them, such as their employees. They contribute to charitable causes.

The day will come when you want out. Given all your hard work and sacrifice, you deserve a big pay day. So, why not set yourself up today for that to happen?

As it turns out, buyers have a lot in common. Below is a list of characteristics that, when present in a business, entice buyers to pay more. Conversely, a lack of these characteristics detracts from the price received. These “value drivers” are listed in rough order of importance.

How a business is sold has as much to do with the value received (i.e., Sale Value) as the characteristics of the business itself, but the business— and its compilation of characteristics— is the foundation. Remember the Sale Value© equation:

Sale Value = Enterprise Value + Packaging + Process + Deal-Maker Skill©

Download Podcast [podcast]http://www.acquisitionadvisors.com/wp-content/uploads/Business-Sellers-Maximize-Value-When-Key-Managers-are-Involved_edited.mp3[/podcast]

When a battle must be waged, a battle plan is developed. Experts are brought in and together settle on the plan that has the best chance of securing victory at the lowest possible risk and cost. The plan is always confidential, and almost always includes an element of surprise.

Transitioning a family business is a delicate, time consuming and potentially hazardous undertaking. There are numerous tax and non-tax factors to consider. Common complexities include how to handle family members who work in the business versus those who do not, and liquidity issues that inevitably arise when the bulk of the family’s wealth is tied up in the productive assets of the business.

When selling a one-of-a-kind asset, how do you estimate “fair price”?
How do you know whether an offer is “high”?
How do you determine what price is absolutely the highest sale price possible?

There is but one absolute, undisputed key to selling a business for maximum value. Everyone knows it, deep down, and accepts it as fact. Still, many try to find another way, attempt to ply an alternative route to an optimal sale. There isn’t one, at least not a viable one.