Why Sell Business Powerpoint For Linked In 6 25 2010

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Detailed Presentation on What Buyers and Sellers Are Looking for When Acquiring or Selling A Business

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Why Sell Business Powerpoint For Linked In 6 25 2010

  1. 1. What Buyers Look For Presented by: Southeastern Business Intermediaries, LLC Presented by: Harold Kolbe, President 678-264-8414 [email_address]
  2. 2. How to Plan and Prepare for the Sale of Your Business <ul><li>Why Businesses are Sold </li></ul><ul><li>Exit Strategies </li></ul><ul><li>Valuation </li></ul><ul><li>The Selling Process </li></ul><ul><li>All About Buyers </li></ul><ul><li>Be prepared: Build value every day </li></ul><ul><li>Closing the Deal </li></ul>
  3. 3. Why Businesses are Sold
  4. 4. Why Businesses are Sold <ul><li>Retirement/semi-retirement </li></ul><ul><li>Health issues </li></ul><ul><li>Burn-out </li></ul><ul><li>Personal diversification </li></ul><ul><li>Wealth Protection </li></ul><ul><li>Death </li></ul><ul><li>Divorce/partner disputes </li></ul><ul><li>Business growing too fast/Undercapitalized </li></ul><ul><li>2 nd generation not up to the task </li></ul><ul><li>Loss of market share/Poor performance </li></ul>
  5. 5. What You Want <ul><li>Realize worth/Maximize value </li></ul><ul><li>Minimize financial risk </li></ul><ul><li>Use sale as retirement planning tool </li></ul><ul><li>Allow goals and objectives to be set </li></ul><ul><li>Ensure smooth exit and transition </li></ul>
  6. 6. Dilemma <ul><li>Transfer or sale of the business is imminent </li></ul><ul><li>Single largest financial transaction in a business owner’s life </li></ul><ul><li>No immediate ready-market for company stock </li></ul><ul><li>Can’t place a “For Sale” sign in the yard. How to market? </li></ul>
  7. 7. Why Deals Fail to Close Seller Perspective <ul><li>Unrealistic expectations on pricing </li></ul><ul><li>Seller’s remorse </li></ul><ul><li>Insists on all cash and/or inflexible terms of the deal </li></ul><ul><li>Improper cooperation to the intermediaries and professionals involved in transaction </li></ul><ul><li>Relax in running their business and allow their company’s performance to suffer during selling process </li></ul>
  8. 8. Exit Options
  9. 9. Exit Options <ul><li>Liquidation </li></ul><ul><li>Accident, illness, or death </li></ul><ul><li>Planned succession </li></ul><ul><li>Sale of business to Management or Employees </li></ul><ul><li>Sale of business to outside buyer </li></ul>
  10. 10. Exit Options <ul><li>Selling to a competitor </li></ul><ul><li>Selling to a strategic acquirer </li></ul><ul><li>Selling to a financial buyer </li></ul><ul><li>Alternative Acquirers </li></ul><ul><ul><li>Management buy-out (MBO) </li></ul></ul><ul><ul><li>Employee stock plan (ESOP) </li></ul></ul><ul><ul><li>Individual buyer </li></ul></ul>
  11. 11. Exit Option: Liquidation <ul><li>Fire sale of assets </li></ul><ul><li>Greatest potential for financial loss </li></ul><ul><li>Reputation harmed </li></ul><ul><li>Self-esteem degraded </li></ul><ul><li>Minimal value </li></ul>
  12. 12. Exit Option: Sale Caused by Accident, Illness, or Death <ul><li>Loss of competent management </li></ul><ul><li>Dependence on loyalty and trust of remaining management </li></ul><ul><li>Relies on existing infrastructure and business processes </li></ul><ul><li>Lose control of process </li></ul><ul><li>Does not maximize value </li></ul>
  13. 13. Exit Option: Planned Succession <ul><li>Successor(s) identified, qualified, selected, and accepted </li></ul><ul><li>Successor(s) adequately trained </li></ul><ul><li>Rational – not emotional – choices </li></ul><ul><li>Owner’s know-how transferred? </li></ul><ul><li>Likely payout over time increases risk </li></ul><ul><li>Does not maximize value </li></ul>
  14. 14. Exit Option: Sale of Business to Management or Employees <ul><li>Allows for owner’s goals, objectives, and timetable to be set </li></ul><ul><li>Requires strong internal management </li></ul><ul><li>External financing may be difficult </li></ul><ul><li>ESOP expensive, difficult and time consuming process </li></ul><ul><li>Does not maximize value </li></ul>
  15. 15. Exit Option: Sale of Business to Outside Buyer <ul><li>Allows for owner’s goals, objectives, and timetable to be set </li></ul><ul><li>Maximizes Value </li></ul><ul><ul><li>Broadens Potential Market </li></ul></ul><ul><ul><li>Creates a bidding process </li></ul></ul><ul><ul><li>Brings new ideas to business </li></ul></ul>
  16. 16. Valuation
  17. 17. Valuations <ul><li>No fixed answers </li></ul><ul><li>Common methodologies </li></ul><ul><li>* Comparative data </li></ul><ul><li>* Rules of thumb </li></ul><ul><li>* Discounted cash flow </li></ul>Buyer’s Sanity Test
  18. 18. What is the Value of Your Business? <ul><li>Fair Market Value </li></ul><ul><li>The hypothetical price at which a transaction occurs between a: </li></ul><ul><ul><li>Willing Buyer </li></ul></ul><ul><ul><li>Willing Seller </li></ul></ul><ul><li>Both reasonably informed </li></ul><ul><li>Neither acting under any compulsion </li></ul><ul><li>Both of whom have the financial capacity to engage in the transaction </li></ul><ul><li>There is no single value of your business </li></ul>
  19. 19. Key Factors that Influence the Value of Your Business <ul><li>Earnings stability </li></ul><ul><li>Customer loyalty/continuing customers </li></ul><ul><li>Customer diversity vs. concentration </li></ul><ul><li>Personnel retention/management depth </li></ul><ul><li>Historical and projected growth rates </li></ul><ul><li>Market size and penetration rate </li></ul><ul><li>Key locations </li></ul><ul><li>Unique products/market niche </li></ul><ul><li>Limited competition/Barriers to entry </li></ul><ul><li>Proprietary Products/Process </li></ul><ul><li>Reputation/Image </li></ul><ul><li>Income/Return on Investment </li></ul>
  20. 20. “ Potential”? <ul><li>Buyers will not pay money for “potential” </li></ul><ul><li>They will only pay for current and past performance of the seller’s business </li></ul>
  21. 21. Business Valuation Data <ul><li>Annual financial statements and balance sheets for the last 3 to 5 years </li></ul><ul><li>Last 12 months running of P&L and Balance sheets </li></ul><ul><li>Federal and state income tax returns of company and any subsidiaries </li></ul><ul><li>Accounting journals, payroll and sales tax returns, bank statements </li></ul><ul><li>Records of cash accounts </li></ul>
  22. 22. Business Valuation Data (continued) <ul><li>A/R and A/P current </li></ul><ul><li>Inventory and supplies: FMV </li></ul><ul><li>Fixed asset listing: Real Estate, etc. with depreciation schedule </li></ul><ul><li>Detailed liability list, notes payable </li></ul><ul><li>List of all owners and % </li></ul><ul><li>Customer base and % of revenue per customer to total revenue </li></ul>
  23. 23. Business Valuation Data (continued) <ul><li>Any agreements between owners </li></ul><ul><li>Customer contracts review </li></ul><ul><li>Employment agreements </li></ul><ul><li>Patents, copyrights, trademarks, etc. </li></ul><ul><li>Property tax assessments </li></ul><ul><li>Legal issues pending </li></ul>
  24. 24. Potential <ul><li>Buyers will not PAY money for potential </li></ul><ul><li>They will only PAY for current and past performance of the seller’s business!! </li></ul>
  25. 25. Considerations in Determining Value <ul><li>Seller’s discretionary earnings/cash flow </li></ul><ul><li>Value of tangible assets </li></ul><ul><li>Value of intangible assets (reputation, goodwill, copyright, etc.) </li></ul><ul><li>Replacement value </li></ul><ul><li>Marketability factor </li></ul><ul><li>Market segment </li></ul><ul><li>Territory rights </li></ul><ul><li>Contracts/Recurring Revenue </li></ul>
  26. 26. Owner’s/Sellers Discretionary Cash Flow <ul><li>PERIOD ENDING: FYE __________________ INTERIM _______________________ </li></ul><ul><li>INFORMATION SOURCE: Tax Return _____________ Financial Statements ______________ </li></ul><ul><li>1. Operating Pre-Tax Profit (Loss) or EBIT 1._ __ ________________________ </li></ul><ul><li>2. Owner Salaries, Perks and Benefits </li></ul><ul><li>Add Backs: </li></ul><ul><li>Owner's Salary __________________________ </li></ul><ul><li>Other Family Salaries __________________________ </li></ul><ul><li>Owner's Vehicle __________________________ </li></ul><ul><li>Owner's Insurance __________________________ </li></ul><ul><li>Owner's Medical __________________________ </li></ul><ul><li>Owner's Payroll Taxes __________________________ </li></ul><ul><li>Owner's Travel and Entertainment ______________________ </li></ul><ul><li>Non-Essential Telephone __________________________ </li></ul><ul><li>Non-Essential Utilities __________________________ </li></ul><ul><li>Non-Essential Legal __________________________ </li></ul><ul><li>Donations, Dues, Subscriptions ________________________ </li></ul><ul><li>Non-Essential Accounting __________________________ </li></ul><ul><li>Total Owners Add Backs: 2. ___________________________ </li></ul><ul><li>3. Other Add Backs: </li></ul><ul><li>Depreciation and Amortization ____________________________ </li></ul><ul><li>Interest Expense ____________________________ </li></ul><ul><li>Extraordinary Expense / Non Re-occurring ____________________________ </li></ul><ul><li>Rent (add for overcharge/subtract for no charge/under-charge) _____________ _______________ </li></ul><ul><li>Other (Describe) __________________________________ ____________________________ </li></ul><ul><li>Total Other Add Backs: 3. __________________________ </li></ul><ul><li>Seller's Discretionary Cash Flow: (Total of 1, 2, & 3) 4.________ ___________________ </li></ul><ul><li>Explanation of Unusual or Other Items Added Back to Cash Flow or Affecting Net Profit or Loss: </li></ul><ul><li>___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ </li></ul>
  27. 27. Company Information Detail Survey <ul><li>Complete company contacts </li></ul><ul><li>Background and History </li></ul><ul><li>Company Structure </li></ul><ul><li>Industry Information </li></ul><ul><li>Customer Base Information </li></ul><ul><li>Competition </li></ul><ul><li>Sales and marketing </li></ul><ul><li>Operating Characteristics </li></ul><ul><li>Strategic Acquirer Profile </li></ul><ul><li>Product/Service Details </li></ul><ul><li>Expansion Opportunities </li></ul><ul><li>Vendor Information </li></ul><ul><li>Personnel </li></ul><ul><li>Facility/location characteristics </li></ul>
  28. 28. <ul><li>Conventional Bank Loans </li></ul><ul><li>Typically asset-based </li></ul><ul><li>Equipment : 50%-70% of value </li></ul><ul><li>Inventory: 25%-50% of value </li></ul><ul><li>Receivables: 50%-80% of value </li></ul><ul><li>Intangibles: 0% </li></ul>Factors Affecting Values
  29. 29. Factors Affecting Values <ul><li>Internal factors </li></ul><ul><li>Management (key personnel) </li></ul><ul><li>Services or products systemization (internal systems) </li></ul><ul><li>Unique products or market niche </li></ul><ul><li>Inventory </li></ul><ul><li>Owner control </li></ul><ul><li>Contracts </li></ul><ul><li>Customer Concentration </li></ul><ul><li>Growth Potential </li></ul><ul><li>External factors </li></ul><ul><li>National economics </li></ul><ul><li>Regional economics </li></ul><ul><li>Socioeconomics </li></ul><ul><li>New business </li></ul><ul><li>Competition </li></ul><ul><li>Government laws </li></ul>
  30. 30. Synergy Between Entities May Affect Value <ul><li>“ Synergy” is the interaction of different things so that their combined effect is greater than the sum of individual effects </li></ul><ul><li>How synergistic is service or product to industry? </li></ul><ul><li>How does company culture fit with other industry companies? </li></ul><ul><li>Are niche companies good or bad? (generally good) </li></ul><ul><li>Strategic fits </li></ul>
  31. 31. Valuations Buyers Perspective <ul><li>Present value of future expectations </li></ul><ul><li>Sustained future earnings </li></ul><ul><li>Buyers risk factors </li></ul><ul><li>Buyers return on investment </li></ul><ul><li>Alternative investments </li></ul>
  32. 32. Earnings Multiple <ul><li>Venture Capitalists looking at 42% return </li></ul><ul><li>Equity Investors looking at 33% return </li></ul><ul><li>Junk Bonds return approx. 10-15% </li></ul><ul><li>T Bills return approx. 4% </li></ul><ul><li>Buyers looking for 20-28% return on investment </li></ul>
  33. 33. EBITDA Multiples Value Drivers 0-3 Times 4-6 Times 6+ Times Profitability Erratic Steady High Business Type Commodities Competitive Technical Business Growth Low Moderate High Customers Transient Steady Large Management OK Good Very Good Market Share Tiny Measurable Large Statements Compiled Reviewed Audited ROE 10% 20% 30% Size Small 5-150 Million 150+ million Terms of Sale Difficult Financing Easy
  34. 34. Valuations Market Segmentation by Sales and EBITDA Acquisition Multiples Sales ($millions) 5 150 500 1,000 Size Small Businesses Lower Middle Upper Middle Market EBITDA 2-3x 4-6x 7-8x 8-10x
  35. 35. The Selling Process
  36. 36. Managing the Selling Process Approximate total labor hours = between 450-550 PLANNING SEARCH DEAL MAKING CLOSING 1 st Meeting - Desire for Info on Selling Process Activate Buyer Search Plan Buyer Visit First Meeting Coordinate Due Diligence Data Gathering/Owner Interview Present 1-Page Business Summary Tour Business Loan Request Package Recast Financial Statements Screen Responses (Financially Qualify Buyer) Probe Buyer Interest Lender Introductions Prepare Valuations Report Determine Buyer Interest Motivate Buyer to Act – Offer to Purchase Assist in Resolving All Issues Obtain Listing Agreement Nondisclosure Agreement Facilitate Negotiations Definitive Purchase Agreement Prepare Confidential Marketing Package Present Confidential Marketing Package LOI or offer to purchase Review Final Documents Close!
  37. 37. Difficulties Sellers Encounter <ul><li>Value </li></ul><ul><li>Marketing </li></ul><ul><li>Competitors </li></ul><ul><li>Employees </li></ul><ul><li>Deal structure </li></ul><ul><li>Financing </li></ul><ul><li>Experience </li></ul><ul><li>Confidentiality </li></ul><ul><li>Documents </li></ul><ul><li>Negotiating </li></ul><ul><li>Timing </li></ul><ul><li>Difficult buyer </li></ul><ul><li>Communications </li></ul><ul><li>Emotional attachment </li></ul><ul><li>Maintaining focus on operating the business </li></ul>Issues sellers encounter when trying to sell their own business:
  38. 38. Client Confidentiality Agreement <ul><li>Provides controlled disclosure by client </li></ul><ul><li>States objectives to whom information will be shared with and under what conditions </li></ul><ul><li>Our statement to our client to protect their interests </li></ul>
  39. 39. Professional Representation <ul><li>Benefits of using a Business Broker/Intermediary </li></ul><ul><li>Maintains confidentiality </li></ul><ul><li>Coordinates the key participants </li></ul><ul><li>Interfaces with professionals: attorneys, accountants </li></ul><ul><li>Keeps the players focused </li></ul><ul><li>Maintains deal momentum </li></ul><ul><li>Negotiates the broad strokes </li></ul><ul><li>Assist with deal structure/buyer financing </li></ul><ul><li>Meters frustration levels/Good Guy-Bad Guy </li></ul><ul><li>Finds the pool of potentially qualified buyers </li></ul><ul><li>More likely to enhance value by creating a bidding process </li></ul>
  40. 40. Selling Truisms <ul><li>When I’m asked what a business is worth- I ask, are we buyers or sellers? </li></ul><ul><li>I get nervous when someone says-don’t worry, it’s a done deal. </li></ul><ul><li>You can’t sell a business to someone who doesn’t want to buy it. </li></ul><ul><li>You can’t buy a business from someone who doesn’t want to sell it. </li></ul><ul><li>A deal is only as good as the available alternatives. </li></ul><ul><li>Every deal that looks too good to be true- usually is. </li></ul><ul><li>All businesses that fail have one thing in common- they all run out of cash. </li></ul>
  41. 41. Planning <ul><li>Desire for Info on Selling Process </li></ul><ul><li>Data Gathering/Owner Interview </li></ul><ul><li>Recast Financial Statements </li></ul><ul><li>Prepare Valuations Report </li></ul>
  42. 42. Seller Expectations <ul><li>What do you expect to realize from transaction? </li></ul><ul><li>Terms of Sale </li></ul><ul><ul><li>Available cash of buyer </li></ul></ul><ul><ul><li>Financing (lender vs. owner) </li></ul></ul><ul><ul><li>Earnouts </li></ul></ul><ul><ul><li>Equity sharing </li></ul></ul><ul><ul><li>Time Expectations </li></ul></ul>
  43. 43. Marketing a Company The Prospecting Process Buyer databases + Directories + Additional databases + Internet + Print media + PEGS + Other Pool of Prospects Qualified Prospects Blind profile mailing Short list Document package Qualified buyers
  44. 44. Marketing Memo Checklist for Performing Strengths/Weaknesses Analysis <ul><li>Marketing </li></ul><ul><li>Finance </li></ul><ul><li>Manufacturing </li></ul><ul><li>Organization </li></ul>
  45. 45. All About Buyers
  46. 46. Buyer Sanity Check <ul><li>Excel spread sheet </li></ul><ul><li>Able to analysis whether lender will consider this transaction </li></ul>
  47. 47. All About Buyers <ul><li>Best prospects : </li></ul><ul><li>High net-worth individual </li></ul><ul><li>Private firms – domestic/international </li></ul><ul><li>Private investment groups </li></ul><ul><li>Public firms – domestic/international </li></ul><ul><li>Riskier prospects: </li></ul><ul><li>Local competitors </li></ul><ul><li>Company’s customers </li></ul><ul><li>Company’s suppliers </li></ul><ul><li>Employees </li></ul>Who will buy your company? Note: Usually the highest and best offers come from strategic or synergistic buyers.
  48. 48. Top Concerns of a Typical Buyer <ul><li>Reasonable price </li></ul><ul><li>Cash flow </li></ul><ul><li>Reason for sale </li></ul><ul><li>Revenues </li></ul><ul><li>Financials </li></ul><ul><li>Financing </li></ul><ul><li>History/Trends </li></ul><ul><li>Growth </li></ul><ul><li>Future Potential </li></ul><ul><li>Key management </li></ul><ul><li>Desirability </li></ul><ul><li>Transferability </li></ul>
  49. 49. What do Strategic Buyers Buy? <ul><li>A strategic buyer will buy* your business not for what it has been but for what it can be , and to: </li></ul><ul><li>Acquire new products/technology </li></ul><ul><li>Acquire new markets </li></ul><ul><li>Achieve growth more rapidly </li></ul><ul><li>Acquire an established presence in a market (area) </li></ul><ul><li>Avoid risks of start-ups or expansion </li></ul><ul><li>Strengthen position in particular markets </li></ul><ul><li>Acquire undervalued facilities </li></ul><ul><li>Acquire undervalued businesses </li></ul>
  50. 50. What Buyers Look For <ul><li>Reasonable Price </li></ul><ul><li>Provable books and records </li></ul><ul><li>Leverage and terms </li></ul><ul><li>Living wage </li></ul><ul><li>Furniture, fixtures and equipment (current FMV, not overstated) </li></ul><ul><li>Appearance </li></ul>
  51. 51. What Buyers Look For <ul><li>Lease (reasonable term and cost) </li></ul><ul><li>Training (by the seller for 1-6 months) </li></ul><ul><li>Covenant not to compete </li></ul><ul><li>A good reason for the sale </li></ul><ul><li>Time is of the essence </li></ul><ul><li>No last minute surprises </li></ul>Continued…
  52. 52. Identifying the Most Suitable Business The Target Business Match Up <ul><li>Absentee ownership-passive investment </li></ul><ul><li>Personal Income </li></ul><ul><li>Managing People </li></ul><ul><li>Growth Expectations </li></ul><ul><li>Self-Image </li></ul><ul><li>Physical Requirements </li></ul><ul><li>Time Freedom </li></ul><ul><li>Personal Sales Involvement </li></ul><ul><li>Family Involvement </li></ul><ul><li>People Contact </li></ul><ul><li>Travel and Training Requirements </li></ul><ul><li>Weekends or Day/Night requirements </li></ul>
  53. 53. Buyer Types and Investment <ul><li>Based upon established purchase price, in general: </li></ul><ul><li>______________________________ </li></ul><ul><li>Individual will pay 80% of asking price </li></ul><ul><li>Equity investor might pay 95% to 100% of asking price </li></ul><ul><li>Synergistic buyer might pay up to 120% of asking price </li></ul>
  54. 54. The 90% Rule Facts about Buyers <ul><li>90% of buyers are first time buyers </li></ul><ul><li>90% of all buyers will finance the purchase of their business </li></ul><ul><li>90% of all buyers don’t know what kind of business they want </li></ul><ul><li>90% of all buyers are terrified or uneducated in the buying process </li></ul><ul><li>90% will not buy the business that was advertised or the one that they called in on </li></ul>
  55. 55. Confidentiality and Non-Disclosure Agreement <ul><li>Before providing information to the buyer about the business they are looking at we will get: </li></ul><ul><li>Confidentiality and non-disclosure agreement </li></ul><ul><li>Financial statement </li></ul>
  56. 56. Be Prepared: Build Value Every Day
  57. 57. Preparing Your Business for Sale <ul><li>Develop a Management Team </li></ul><ul><li>Grow Revenue </li></ul><ul><li>Develop New Markets/Products </li></ul><ul><li>Maximize EBITDA/Cash Flow </li></ul><ul><li>Internal Systems and Procedures </li></ul><ul><li>Complete and Accurate Financials </li></ul><ul><li>Eliminate Surprises </li></ul><ul><li>Review Goals and Objectives with Strategic Financial Partners </li></ul>
  58. 58. Financial Records Housekeeping <ul><li>Record all sales and expenses </li></ul><ul><li>Eliminate co-mingling assets </li></ul><ul><li>Clean up inventory </li></ul><ul><li>Do your own due diligence </li></ul><ul><li>Eliminate marginal “perks” </li></ul><ul><li>Compliance with taxing authorities </li></ul><ul><li>Clean the balance sheet and income statement </li></ul><ul><li>Organize and make records available </li></ul>
  59. 59. Checklist for Selling <ul><li>Be confident </li></ul><ul><li>Be credible </li></ul><ul><li>Have a firm selling strategy </li></ul><ul><li>Plan your marketing </li></ul><ul><li>Seek professional advice </li></ul><ul><li>Pre-qualify the business for lending </li></ul><ul><li>Address internal issues </li></ul><ul><li>Prepare for the buyer’s due diligence </li></ul><ul><li>Anticipate buyer’s questions </li></ul><ul><li>Use professional intermediary to market and negotiate for the highest value </li></ul>
  60. 60. Steps After Letter of Engagement Letter of Engagement Real Property Listing (if property involved) Exclusive Seller Listing Agreement Gather Financials Copy of any appraisals: Property, Equipment, etc. Tax Returns Executive Summary Overview for Mailing Photo’s and Advertising Blurb Complete profile Enter to Search Engines Mailers Follow Up
  61. 61. The Importance of Timing <ul><li>The ideal time to sell: </li></ul><ul><li>When the industry is hot - “ A rising tide lifts all boats.” </li></ul><ul><li>When the economy is strong </li></ul><ul><li>When interest rates are favorable </li></ul><ul><li>When buyers abound </li></ul>
  62. 62. Prepare to Share With the Buyer <ul><li>Provide the following for past and present only after a Letter of Intent is agreed upon : </li></ul><ul><li>Historical financial statements </li></ul><ul><li>Tax returns </li></ul><ul><li>Employee lists </li></ul><ul><li>Account receivable aging </li></ul><ul><li>Facility and equipment leases </li></ul><ul><li>Environmental reports </li></ul><ul><li>Pension, profit-sharing, and all other benefits </li></ul><ul><li>Union contracts or organization activity </li></ul><ul><li>Pending or threaten litigation </li></ul><ul><li>Customer lists </li></ul><ul><li>Other important agreements </li></ul>
  63. 63. Closing the Deal
  64. 64. Closing the Deal <ul><li>Offer to Purchase/Letter of Intent </li></ul><ul><li>Due Diligence </li></ul><ul><li>Deal Structure </li></ul><ul><li>Financing </li></ul><ul><li>Contract to Purchase </li></ul><ul><li>Closing </li></ul>
  65. 65. Buying Documents <ul><li>Letter of Intent to Purchase-Non Binding (framework of the offer, terms, and due diligence items) </li></ul><ul><li>Due Diligence </li></ul><ul><li>Sales Agreement – Legal document as a purchase document </li></ul>
  66. 66. Southeastern Business Intermediaries, LLC <ul><li>SBI specializes in M&A, Assisting companies to sell their business, assisting buyers to locate a business to purchase, and capital procurement </li></ul><ul><li>Target Markets: Technology, Manufacturing, Distribution, Service companies, Storage Facilities, Hotels and Assisted Living Facilities </li></ul><ul><li>Revenue Value: $500,000 to $15 million </li></ul><ul><li>Referrals: ALL OPPORTUNITIES WILL BE REVIEWED </li></ul>
  67. 67. What to Listen and Look For <ul><li>I’m tired of the only one making sales/operations </li></ul><ul><li>I’d rather be doing something else </li></ul><ul><li>I wonder how much my business is worth </li></ul><ul><li>I don’t think anyone would want to buy my business </li></ul><ul><li>Someone in “Retirement Age” </li></ul><ul><li>Who will run the business when owner retires </li></ul><ul><li>Change in management or key personnel </li></ul><ul><li>Loss or addition of major customer </li></ul><ul><li>Thinking of an exit strategy </li></ul>
  68. 68. Questions You Might be Able to Bring Up <ul><li>Do you have an exit strategy </li></ul><ul><li>How long have you been doing XX </li></ul><ul><li>Would you want to know what your business is worth in the market place </li></ul>
  69. 69. Thanks for your attention! Presented by: Southeastern Business Intermediaries, LLC Harold Kolbe, President 678-264-8414 [email_address]

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