Why Use a Professional Intermediary?

The process of selling a company can be an emotional and traumatic experience. In many cases, the owner or owners have spent years building an operation that became an integral part of who they are and how they identify themselves. When a decision is made to sell or transition the business to someone else, the emotional attachment and natural biases owners have can create obstacles in making sure they get the best value for the contributions they have made. Selling a company is a very time consuming and distracting process. Perhaps the most distracting process is the time senior management must devote to the process and the potential negative impact this can have on the day to day operation of the business. Most companies try to position themselves to be at the peak of their attractiveness to potential suitors when they finally make the decision to find the right buyer. Now, exactly when the company needs to continue performing at its best, senior management must spend an inordinate … [Read more...]

What happens when there is a buyer for my business?

When a buyer is sufficiently interested in your business, he or she will, or should, submit an offer in writing. This offer or proposal may have one or more contingencies. Usually, the contingencies concern a detailed review of your financial records and may also include a review of your lease arrangements, franchise agreement (if there is one), or other pertinent details of the business. You may accept the terms of the offer or you may make a counter-proposal. You should understand, however, that if you do not accept the buyer's proposal, the buyer can withdraw it at any time. At first review, you may not be pleased with a particular offer; however, it is important to look at it carefully. It may be lacking in some areas, but it might also have some pluses to seriously consider. There is an old adage that says, "The first offer is generally the best one the seller will receive." This does not mean that you should accept the first, or any offer -- just that all offers should be looked … [Read more...]

What can I do to help sell my business?

The most important thing is to work with the intermediary to coordinate all activities during the process. When selling a home, you want everyone to know it. When selling a company you don't want anyone to know it. This is where an intermediary can provide you with access to qualified and interested buyers and make sure that the confidential nature of the proposed transaction remains intact. At The Results Group, Inc. we are, in fact, a confident of the CEO and our job is to act on behalf of our principal in everything we do. It is important for us, the intermediary, and the client to have clear, consistent and unobstructed communication so that we can provide the best service and deliver the best prospects to buy the company. … [Read more...]

What can intermediaries do – and, what can’t they do?

M&A Intermediaries are the professionals who will facilitate the successful sale of your business. It is important that you understand just what a they can do -- as well as what they can't. They work with you to help ascertain the value of your business and can help you better understand the price range of your business and how to structure the sale so it makes sense for everyone -- you and the buyer. They can find the right buyer for your business, work with you and the buyer in negotiating and along every other step of the way until the transaction is successfully closed. An intermediary is not, however, a magician who can sell an overpriced business. Most businesses are saleable if priced and structured properly. A good intermediary helps a seller better understand the value range of his/her operation to potential buyers. It's the marketplace that determines what a business will sell for and a good intermediary works with a seller to help maximize the value and create a … [Read more...]

How long does it take to sell a business?

Generally a well positioned middle market business takes anywhere from several months to more than a year to find the right buyer. Why so long? A good intermediary spends quality time on the front end to develop a solid understanding of the company, a well crafted offering memorandum and a targeted list of potential suitors. This process alone can take a couple of months. This time, however, is need to package the company in a manner that is designed to attract the best suitors in the target acquisition market. At The Results Group, Inc. we place strong emphasis on not just the business but what distinguishes this business from its competitors. A comprehensive offering memorandum describing the business, its operations, personnel, market place, distribution, competitors, scalability and complete pro-forma P&L's, Balance Sheets and Cash Flow statements, both historically and for the next five years help create a picture that enables a potential suitor to see where the company … [Read more...]