Software Business Broker handling M&A projects for lower middle market business owners. I work with software and SaaS companies having revenue between $3m-$20m. My clients typically receive multiple offers for their business.
IBBA - How Business Brokers Can Help Entrepreneurs Buy & Sell BusinessesBizNexus
Business brokers help entrepreneurs buy and sell small to mid-size businesses. Approximately 800,000 new businesses are started each year in the US, but 50% fail within the first year and 85% fail within 5 years. Only 120,000 to 150,000 businesses are sold each year. Business brokers find buyers and sellers, provide advice, and facilitate negotiations and closing processes. Their services include assessing a business's marketability, structuring deals to minimize taxes, creating marketing materials, and helping buyers find suitable investment opportunities. Using business brokers provides experience and expertise that can help smooth the buying and selling process.
Ultimate Guide to Selecting a Business BrokerEric J. Gall
The document provides guidance on selecting a competent business broker. It emphasizes that brokers should have relevant certifications like CBI and CM&AP, belong to associations like IBBA, be willing to co-broker, sell businesses full-time, have a track record of sales, charge reasonable fees typically based on sale price, properly value and price the business, have an effective marketing process, maintain confidentiality, and qualify interested buyers. The ideal broker invests in their education and focuses exclusively on selling businesses to maximize value for clients.
It is a given that we will all exit our business at some point - willingly or not! - and it is never to soon to start planning that exit.
There is a link at the end of this deck to the associated blog and webinar recording
We’re often asked by promotional product distributors “Should I join a buying group?” – and truth be told, we’ve not really been well informed enough to comment.
So we asked five of the leading buying groups to tell us what makes them a good choice for distributors; what makes them different, and what sort of distributor is a good fit for their services.
We also asked five members of these buying groups to give us their honest feedback on value for money, support, and whether they felt they could have made it as far without their network.
These are the slides that accompanied the presentation, which took place on April 8, 2015.
This document provides information about Murphy Business & Financial Corporation, a large business brokerage firm with offices in the United States and Canada. It details the type of documents a business owner may need to provide when interested in selling their business, such as financial records, tax returns, contracts, and information about assets and employees. The document recommends hiring a professional business broker to handle the sale, as they have expertise in legal and financial aspects, finding qualified buyers, and ensuring a successful transaction.
Do you have what it takes to be a business broker? Are you looking for an exciting, fast-paced career that can make you a lot of money? Consider working for Sunbelt Business Brokers today.
The document promotes joining the business brokerage firm Sunbelt, highlighting the career opportunities, benefits, and Sunbelt's advantages. It summarizes that as a Sunbelt business broker, one can earn high commissions by bringing buyers and sellers together to facilitate business transactions. The career offers independence, opportunities for professional development, and uncapped earnings potential. Sunbelt provides extensive training, a large international network, and support to set the standard in business brokerage.
The document outlines an 8-step proactive acquisition search process to help clients successfully acquire businesses. It begins with preparation, then locating and selecting target businesses not actively on the market. The process involves direct outreach, evaluations, negotiations and closing assistance. The service aims to increase odds of acquiring a suitable business within 4-6 months that better meets goals than reactive listings.
IBBA - How Business Brokers Can Help Entrepreneurs Buy & Sell BusinessesBizNexus
Business brokers help entrepreneurs buy and sell small to mid-size businesses. Approximately 800,000 new businesses are started each year in the US, but 50% fail within the first year and 85% fail within 5 years. Only 120,000 to 150,000 businesses are sold each year. Business brokers find buyers and sellers, provide advice, and facilitate negotiations and closing processes. Their services include assessing a business's marketability, structuring deals to minimize taxes, creating marketing materials, and helping buyers find suitable investment opportunities. Using business brokers provides experience and expertise that can help smooth the buying and selling process.
Ultimate Guide to Selecting a Business BrokerEric J. Gall
The document provides guidance on selecting a competent business broker. It emphasizes that brokers should have relevant certifications like CBI and CM&AP, belong to associations like IBBA, be willing to co-broker, sell businesses full-time, have a track record of sales, charge reasonable fees typically based on sale price, properly value and price the business, have an effective marketing process, maintain confidentiality, and qualify interested buyers. The ideal broker invests in their education and focuses exclusively on selling businesses to maximize value for clients.
It is a given that we will all exit our business at some point - willingly or not! - and it is never to soon to start planning that exit.
There is a link at the end of this deck to the associated blog and webinar recording
We’re often asked by promotional product distributors “Should I join a buying group?” – and truth be told, we’ve not really been well informed enough to comment.
So we asked five of the leading buying groups to tell us what makes them a good choice for distributors; what makes them different, and what sort of distributor is a good fit for their services.
We also asked five members of these buying groups to give us their honest feedback on value for money, support, and whether they felt they could have made it as far without their network.
These are the slides that accompanied the presentation, which took place on April 8, 2015.
This document provides information about Murphy Business & Financial Corporation, a large business brokerage firm with offices in the United States and Canada. It details the type of documents a business owner may need to provide when interested in selling their business, such as financial records, tax returns, contracts, and information about assets and employees. The document recommends hiring a professional business broker to handle the sale, as they have expertise in legal and financial aspects, finding qualified buyers, and ensuring a successful transaction.
Do you have what it takes to be a business broker? Are you looking for an exciting, fast-paced career that can make you a lot of money? Consider working for Sunbelt Business Brokers today.
The document promotes joining the business brokerage firm Sunbelt, highlighting the career opportunities, benefits, and Sunbelt's advantages. It summarizes that as a Sunbelt business broker, one can earn high commissions by bringing buyers and sellers together to facilitate business transactions. The career offers independence, opportunities for professional development, and uncapped earnings potential. Sunbelt provides extensive training, a large international network, and support to set the standard in business brokerage.
The document outlines an 8-step proactive acquisition search process to help clients successfully acquire businesses. It begins with preparation, then locating and selecting target businesses not actively on the market. The process involves direct outreach, evaluations, negotiations and closing assistance. The service aims to increase odds of acquiring a suitable business within 4-6 months that better meets goals than reactive listings.
The document outlines an approach for entrepreneurs to fund product development without debt or giving up equity, by partnering with larger companies. It discusses how Thomas McCabe has successfully used this approach in the past by identifying problems that large companies want to solve and developing solutions for them. The document then provides guidance on how entrepreneurs can identify potential partner companies, structure agreements to qualify their technology as the partner's R&D, avoid common pitfalls, and ensure the arrangement benefits both parties.
Selling a business is a complex and demanding process. There are many areas that simple mistakes can be made such as the best price to list the business for sale, what legal forms to use, what taxes need to be paid or better still, how taxes can be minimized and so much morfe. This presentation provides a summary of what needs to be considered.
An entrepreneur invests a lot of time and money in refining a business model.
• A franchise is a very good opportunity to leverage this investment and replicate a successful model.
• Both, the franchisor and the franchisee can generate profits individually from this wealth of knowledge.
• The franchise industry is growing world over as well as in India.
• In India after liberalization, the franchise model of business took off and has never looked back since.
This document summarizes a seminar about buying and valuing privately held businesses. The seminar discusses factors that affect business value, maintaining confidentiality during sales, financing issues, and goals to reach win-win scenarios for buyers and sellers. The presenter, Joseph Harrel, has experience buying, operating, and selling his own business and now helps others through business brokerage. Key points include properly evaluating businesses, understanding tax considerations, maintaining confidentiality in negotiations, and taking steps to minimize risk such as due diligence and professional advice.
The document provides guidance for first-time business buyers on how to become informed buyers and improve their chances of successfully acquiring a business. It recommends buyers set clear acquisition objectives, understand the marketplace and deal processes, develop quality deal flow sources, consider working with professional intermediaries, and be patient as it is a lengthy process to find and close a deal.
A presentation about what goes into selling or buying a business, and the role a business broker plays to help maximize your chances for success. Presented by Murphy Business.
This document outlines the step-by-step process for selling a business, which includes determining the business's value, preparing marketing materials, developing a marketing plan, negotiating offers, conducting due diligence, and finalizing the closing process. It emphasizes that the process is complex and recommends engaging a business intermediary to handle many of the key steps, such as valuation, marketing, negotiations, and closing, in order to maximize the selling price and ensure a smooth transaction.
How to Buy a Business without Buyer's RemorseMike Blake
There is lots of material out there on how to sell a business but relatively little on how to buy one. This presentation offers a roadmap and some practical advice on buying a business - from finding a business to buy, to due diligence, to pricing an Structuring.
7 critical points every seller should know before selling their businessPaula Carr
When it comes to selling a business, most business owners don't even know where to start or which questions to ask. The entire selling process may seem confusing and overwhelming. Some owners turn to their accountant or legal professional for advice, but those professionals represent only a fraction of the overall solution. When you consider that in a typical selling situation there are no less than four different professionals involved in the transaction ranging from accountants to investment bankers, it is easy to see why many people are afraid to even begin the process.
If you've been thinking of selling your business, let us guide you through the process, relieving the stress of selling on your own and eliminating any obstacles that may appear along the way.
www.murphybusiness.com/raleigh
Buying and Selling A Small or Mid-Size Business - Initiation of Discussions, ...esstevens
This document discusses various aspects of buying and selling a small or mid-size business, including:
1) It provides an overview of current M&A market conditions, noting opportunities for quality companies and strong competition for assets.
2) It outlines the process of initiating a transaction, including assessing strategic options, valuation, identifying potential buyers, and engaging advisors.
3) It describes the roles of key members of the deal team, including owners, management, accountants, legal counsel, investment bankers, and tax advisors.
Running Your Business in a Low Inventory MarketMaura Neill
Low inventory market means a skill set shift. You need to know how to generate inventory, market yourself to get more listings, handle multiple offers to the sellers AND position buyers’ offers in a multiple offer setting. In this session taken right from the trenches of today’s market, Maura will even address the psychology of the unrealistic seller and the disappointed/angry buyer.
Our affiliations with National and International Business Brokerage and Merger & Acquisition associations guarantee you that we adhere to the highest professional standards when helping you sell a business. And, as a client, these networks enable the Murphy business brokers to provide you with access to the broadest number of qualified, potential buyers - something you just can't get with many neighborhood real estate and business sales firms. Instead of having access to your own local market, we connect you worldwide.
Slides webinar 'How to prevent bad debt and maximise profit'Colin Sanders
In this webinar Philip King (Chief Executive of the Chartered Institute of Credit Management) and Colin Sanders (Head of UK Operations at Graydon UK Ltd) explain how to avoid bad debts and maximize potential for sales.
This document discusses options for entering export markets, focusing on the differences between agents and distributors. It provides details on finding, selecting, and motivating potential partners; outlines advantages and disadvantages of agents and distributors; and emphasizes the importance of clear communication, monitoring performance, and having a well-defined plan for market entry.
SMERGERS is a deal platform that automates the process of connecting businesses, investors, acquirers, lenders, and advisors. It provides services like mergers and acquisitions, fundraising, and debt transactions. Businesses can create a profile, get matched with potential partners, and connect. Investors can search for matching businesses. SMERGERS also offers professional services like business valuations, business plans, and due diligence to help accelerate deals.
Helping Your Client Buy or Sell a Small-To-Medium Sized BusinessDecosimoCPAs
This document provides an overview of advising clients on buying or selling a small-to-medium sized business. It discusses assembling an advisory team, performing due diligence, creating letters of intent, and financing options. Business valuation methods like rules of thumb, income, asset-based, and market approaches are also covered. The goal is to guide clients through the process and structure deals to bridge valuation gaps.
This document provides an overview of business ownership options, with a focus on franchising. It discusses why people choose to work for others rather than own their own business, and explores the risks and perceptions of risk around jobs and business ownership. The document outlines three options for business ownership: starting your own business, buying an existing business, or buying a franchise. It argues that franchising provides benefits like name recognition, proven systems, support and lower failure rates compared to other options. Common myths about franchising are debunked, such as the ideas that only certain industries franchise, or that franchises are automatically expensive or require industry experience. Overall benefits of franchising are summarized as using a proven approach to starting and staying in business with
The document outlines an approach for entrepreneurs to fund product development without debt or giving up equity, by partnering with larger companies. It discusses how Thomas McCabe has successfully used this approach in the past by identifying problems that large companies want to solve and developing solutions for them. The document then provides guidance on how entrepreneurs can identify potential partner companies, structure agreements to qualify their technology as the partner's R&D, avoid common pitfalls, and ensure the arrangement benefits both parties.
Selling a business is a complex and demanding process. There are many areas that simple mistakes can be made such as the best price to list the business for sale, what legal forms to use, what taxes need to be paid or better still, how taxes can be minimized and so much morfe. This presentation provides a summary of what needs to be considered.
An entrepreneur invests a lot of time and money in refining a business model.
• A franchise is a very good opportunity to leverage this investment and replicate a successful model.
• Both, the franchisor and the franchisee can generate profits individually from this wealth of knowledge.
• The franchise industry is growing world over as well as in India.
• In India after liberalization, the franchise model of business took off and has never looked back since.
This document summarizes a seminar about buying and valuing privately held businesses. The seminar discusses factors that affect business value, maintaining confidentiality during sales, financing issues, and goals to reach win-win scenarios for buyers and sellers. The presenter, Joseph Harrel, has experience buying, operating, and selling his own business and now helps others through business brokerage. Key points include properly evaluating businesses, understanding tax considerations, maintaining confidentiality in negotiations, and taking steps to minimize risk such as due diligence and professional advice.
The document provides guidance for first-time business buyers on how to become informed buyers and improve their chances of successfully acquiring a business. It recommends buyers set clear acquisition objectives, understand the marketplace and deal processes, develop quality deal flow sources, consider working with professional intermediaries, and be patient as it is a lengthy process to find and close a deal.
A presentation about what goes into selling or buying a business, and the role a business broker plays to help maximize your chances for success. Presented by Murphy Business.
This document outlines the step-by-step process for selling a business, which includes determining the business's value, preparing marketing materials, developing a marketing plan, negotiating offers, conducting due diligence, and finalizing the closing process. It emphasizes that the process is complex and recommends engaging a business intermediary to handle many of the key steps, such as valuation, marketing, negotiations, and closing, in order to maximize the selling price and ensure a smooth transaction.
How to Buy a Business without Buyer's RemorseMike Blake
There is lots of material out there on how to sell a business but relatively little on how to buy one. This presentation offers a roadmap and some practical advice on buying a business - from finding a business to buy, to due diligence, to pricing an Structuring.
7 critical points every seller should know before selling their businessPaula Carr
When it comes to selling a business, most business owners don't even know where to start or which questions to ask. The entire selling process may seem confusing and overwhelming. Some owners turn to their accountant or legal professional for advice, but those professionals represent only a fraction of the overall solution. When you consider that in a typical selling situation there are no less than four different professionals involved in the transaction ranging from accountants to investment bankers, it is easy to see why many people are afraid to even begin the process.
If you've been thinking of selling your business, let us guide you through the process, relieving the stress of selling on your own and eliminating any obstacles that may appear along the way.
www.murphybusiness.com/raleigh
Buying and Selling A Small or Mid-Size Business - Initiation of Discussions, ...esstevens
This document discusses various aspects of buying and selling a small or mid-size business, including:
1) It provides an overview of current M&A market conditions, noting opportunities for quality companies and strong competition for assets.
2) It outlines the process of initiating a transaction, including assessing strategic options, valuation, identifying potential buyers, and engaging advisors.
3) It describes the roles of key members of the deal team, including owners, management, accountants, legal counsel, investment bankers, and tax advisors.
Running Your Business in a Low Inventory MarketMaura Neill
Low inventory market means a skill set shift. You need to know how to generate inventory, market yourself to get more listings, handle multiple offers to the sellers AND position buyers’ offers in a multiple offer setting. In this session taken right from the trenches of today’s market, Maura will even address the psychology of the unrealistic seller and the disappointed/angry buyer.
Our affiliations with National and International Business Brokerage and Merger & Acquisition associations guarantee you that we adhere to the highest professional standards when helping you sell a business. And, as a client, these networks enable the Murphy business brokers to provide you with access to the broadest number of qualified, potential buyers - something you just can't get with many neighborhood real estate and business sales firms. Instead of having access to your own local market, we connect you worldwide.
Slides webinar 'How to prevent bad debt and maximise profit'Colin Sanders
In this webinar Philip King (Chief Executive of the Chartered Institute of Credit Management) and Colin Sanders (Head of UK Operations at Graydon UK Ltd) explain how to avoid bad debts and maximize potential for sales.
This document discusses options for entering export markets, focusing on the differences between agents and distributors. It provides details on finding, selecting, and motivating potential partners; outlines advantages and disadvantages of agents and distributors; and emphasizes the importance of clear communication, monitoring performance, and having a well-defined plan for market entry.
SMERGERS is a deal platform that automates the process of connecting businesses, investors, acquirers, lenders, and advisors. It provides services like mergers and acquisitions, fundraising, and debt transactions. Businesses can create a profile, get matched with potential partners, and connect. Investors can search for matching businesses. SMERGERS also offers professional services like business valuations, business plans, and due diligence to help accelerate deals.
Helping Your Client Buy or Sell a Small-To-Medium Sized BusinessDecosimoCPAs
This document provides an overview of advising clients on buying or selling a small-to-medium sized business. It discusses assembling an advisory team, performing due diligence, creating letters of intent, and financing options. Business valuation methods like rules of thumb, income, asset-based, and market approaches are also covered. The goal is to guide clients through the process and structure deals to bridge valuation gaps.
This document provides an overview of business ownership options, with a focus on franchising. It discusses why people choose to work for others rather than own their own business, and explores the risks and perceptions of risk around jobs and business ownership. The document outlines three options for business ownership: starting your own business, buying an existing business, or buying a franchise. It argues that franchising provides benefits like name recognition, proven systems, support and lower failure rates compared to other options. Common myths about franchising are debunked, such as the ideas that only certain industries franchise, or that franchises are automatically expensive or require industry experience. Overall benefits of franchising are summarized as using a proven approach to starting and staying in business with
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
https://rb.gy/usj1a2
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Structural Design Process: Step-by-Step Guide for BuildingsChandresh Chudasama
The structural design process is explained: Follow our step-by-step guide to understand building design intricacies and ensure structural integrity. Learn how to build wonderful buildings with the help of our detailed information. Learn how to create structures with durability and reliability and also gain insights on ways of managing structures.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
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Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
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The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
This presentation provides a thorough examination of Over-the-Top (OTT) platforms, focusing on their development and substantial influence on the entertainment industry, with a particular emphasis on the Indian market.We begin with an introduction to OTT platforms, defining them as streaming services that deliver content directly over the internet, bypassing traditional broadcast channels. These platforms offer a variety of content, including movies, TV shows, and original productions, allowing users to access content on-demand across multiple devices.The historical context covers the early days of streaming, starting with Netflix's inception in 1997 as a DVD rental service and its transition to streaming in 2007. The presentation also highlights India's television journey, from the launch of Doordarshan in 1959 to the introduction of Direct-to-Home (DTH) satellite television in 2000, which expanded viewing choices and set the stage for the rise of OTT platforms like Big Flix, Ditto TV, Sony LIV, Hotstar, and Netflix. The business models of OTT platforms are explored in detail. Subscription Video on Demand (SVOD) models, exemplified by Netflix and Amazon Prime Video, offer unlimited content access for a monthly fee. Transactional Video on Demand (TVOD) models, like iTunes and Sky Box Office, allow users to pay for individual pieces of content. Advertising-Based Video on Demand (AVOD) models, such as YouTube and Facebook Watch, provide free content supported by advertisements. Hybrid models combine elements of SVOD and AVOD, offering flexibility to cater to diverse audience preferences.
Content acquisition strategies are also discussed, highlighting the dual approach of purchasing broadcasting rights for existing films and TV shows and investing in original content production. This section underscores the importance of a robust content library in attracting and retaining subscribers.The presentation addresses the challenges faced by OTT platforms, including the unpredictability of content acquisition and audience preferences. It emphasizes the difficulty of balancing content investment with returns in a competitive market, the high costs associated with marketing, and the need for continuous innovation and adaptation to stay relevant.
The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
2. Agenda
• Overview
• Market Segmentation Overview
• Buyer Types
• Ideal Seller Profile
• Advantages of a Broker
• Deal Terms and Valuation
• Thoughts on Asking Prices
• Godfather Offers
• Business Terms
• Seller Commitment
• Next Steps
3. Overview
• David is a licensed California Business Broker. He is with Link Business –
Silicon Valley.
• His focus is on the Lower Middle Market.
• Revenue between $3m-$20m
• EBITDA between $1m-$5m
• 15-50 W2 employees
• His industry focus is
• Software / SaaS
• Software Enabled Businesses
• Service Based Companies capable of supporting a regional or national customer base
4. Revenue
(in Millions)
Key Attributes Served by Segment Entities in USA
$0 - $3 Owner operated, simple cap table, typically local
retail locations
Business
Broker
Main
Street
13m+
$3 - $20 Owner operated, some professional
management, cap table has outside investors but
usually angels or friends and family
Business
Broker
Lower
Middle
Market
8m
$20 - $200 Professional management, larger cap table with
some professional investors
M&A
Advisor
Middle
Market
180k
$100 - $1bn+ Professional management, potentially thousands
of investors, can be publicly traded, complex legal
and tax decisions, international operations
Investment
Bank
Public
Market
30k
Market Segment Overview
5. David’s Buyer Types
Type Funding Holding
Period
Operating
Involvemen
t
Successful when
Owner/Operator Personal equity, SBA Loan career Daily Earn a good living
Searchfund Institutional Capital, SBA
Loan, some personal
equity
5-7 years Daily Grow and sell 5-7 years later
Private Equity Institutional Capital 5-7 years Part of a
portfolio
Grow and sell 5-7 years later
Family Office Capital from one or more
wealthy families
indefinite Part of a
portfolio
Grow and pay regular dividends
Corporate Strategic Public company indefinite Daily Rapidly scale a synergistic business
6. Ideal Seller Profile
• Owner of a scalable business with a valid reason to sell.
• Businesses are usually sold for lifestyle reasons, not financial reasons
• Valid reasons include: retirement, burnout, divorce, health, move, etc.
• Business is large enough to attract professional business buyers.
• A business will need to reliably generate $500k+ in earnings to support the income
needs of a new owner and the debt repayment required to finance a transaction.
• A quality business which can continue to grow under new ownership.
• A relevant and needed product or service with stable or growing revenue
• Key employees who will continue with the new owner
• Little to no customer concentration issues
• Clean financial statements and tax returns
• No legal, tax or other potentially impactful liabilities
7. Advantages of a Broker
• Faster Deal Closure
• Existing Buyer Network Facilitates Buyer Competition
• Defined Process and Standard Deal Terms
• Coordinated Service Providers (Attorney, CPA and Financial Advisor)
• Higher final transaction value and more cash in deal terms due to
buyer competition
• Signals deal quality to buyers as an experienced 3rd party is engaged
• Less deal risk for buyer and seller by having a 3rd party involved
• Experience brings more process, resulting in less headaches and
stress for all involved
8. Deal Terms and Valuation
• Valuation
• Services based companies typically receive 3-5x Earnings
• Products based companies typically receive 5-12x Earnings
• Deal Terms
• Usually, 80% of the purchase price is received as cash at closing. A 20% seller note @ 6% interest for 24 or 36 months is also part of most
transactions.
• But….
• Even sophisticated buyers, all provided with the same financial information, can have a very wide range of value calculations. The highest
offer can easily be 3x the lowest offer. Deal terms can also vary significantly from all cash at close to 50% or less cash with earnouts and
seller notes.
• Takeaway
• Until the opportunity is brought to market and buyers engaged, it is impossible to know exactly what the owner will receive in terms of
valuation, cash, seller’s notes and deal terms. This is why attracting multiple, simultaneous buyers and having a controlled auction is best
for the seller.
9. My Thoughts on Asking Prices
• The best buyers have plenty of capital and lack time. Getting them to
engage in an opportunity is key. These buyers can smell an
uncommitted seller miles away and avoid investing limited time
pursuing deals unlikely to close.
• An out of range asking price immediately signals an uncommitted
seller
• Seller doesn’t need to sell and will likely walk away after time and money has
been invested by the buyer
• Seller is a difficult personality who doesn’t accept that a market exists of
similar companies
• Seller keeps talking of ‘potential’ but fails to accept ‘actual’ results
10. Godfather Offers
• “Make me an offer I can’t refuse and I’ll sell you my company”
• Some companies do sell for very high multiples and we read about them in
the news. These deals are in the news because the transaction is
newsworthy. The sellers have unique technology protected by patents,
millions of users, well known corporate clients or something else truly
unique and special.
• These transactions almost always start by the buyer approaching the seller
directly. Since the buyer and seller usually operate in the same industry,
the synergy is known to all parties well in advance of any potential
transaction.
• If you aren’t being contacted by large industry players on a regular basis,
you aren’t likely to receive offers beyond a reasonable multiple of earnings.
11. David’s Business Terms
• Sole and Exclusive for 12 months with a 24 month tail on all NDA
signing buyers
• $1000 upfront marketing fee
• Helps cover the cost of marketing the opportunity
• Helps to disqualify uncommitted sellers
• No Retainer or Monthly Charges
• A “Success Fee” due on closed transactions
12. Seller Commitment
• This is my full-time job and I only get paid on the successful sale of a business
• I work with sellers who are committed to selling their company at a reasonable
valuation
• I will try to find strategic buyers (paying greater than financial value)
• Seller must accept or at least pay “success fee” for written offers at or above financial value
• Seller agrees to provide prompt responses to all inquiries via email
• Seller agrees to actively participate in drafting Information Memorandum
• Expect 5-10 hours of time invested in providing information and providing feedback and
edits.
• Seller agrees to actively participate in meeting potential buyers over Zoom
• Expect 30 minutes for each initial meeting and 60 minutes for follow-up questions before
receiving LOIs
13. Next Steps
• Sign Confidentiality Agreement
• Provide 3 Years P&L, Balance Sheet, Tax Returns
• Provide copies of long-term commitments
• Leases
• Customer contracts
14. Why Use a Broker?
• Incomplete packing attracts the wrong types of buyers
• Well capitalized business buyers are exceedingly short on time. Incomplete
materials will attract buyers with the time to piece together your
incomplete information. They will consume lots of your time requesting
various pieces of information and asking you to reformat that information
for their review. In the end, if they make an offer, it will likely be low due to
their lack of capital.
• Each buyer inquiry is very low probability
• Most Private Equity, Family Office and Search Funds look at 200-300
potential opportunities per year. They frequently only invest in 1 or 2.
Your chances of selling your company to a one-off inquiry is very, very low.
15. My Value Add
• I’ve sold enough businesses and spoken to enough well capitalized buyers that I
know what should be including in the promotional materials. I also know what
information is best kept for the Due Diligence phase of the process. My
presentation materials will allow the right types of buyers to quickly decide if
your business is a proper investment. The quality of the materials will signal that
further investigation will not be an exercise in frustration.
• I’m narrowly focused in my industries and maintain a network of well over 1000
potential business buyers specifically looking for the types of businesses I
represent. We’ve spoken on the phone, met over zoom and worked on previous
opportunities together. I’m a known quantity to them and while each one has a
very small chance of buying your company, with so many potential buyers in my
network, I typically generate 5-10 offers for each of my clients.