Don’t downgrade your dreams to match your reality,
Upgrade your faith to match your destiny.
Why Contact us?
Besides listing the business in all platforms like any other business broker,, which we do, we also pay attention to:
- Increasing your gain by by commitment to principles of Kaizen (preventing waste) & Six Sigma (to increase productivity of your processes) that make your company sellable, produce results over time.
- We work with others. affiliated companies made up of seasoned professionals with a culture of caring, generosity, and honesty
- We strive to solve problems for business owners & Provide value to our clients in exchange for what we earn.
- A data base of buyers in “Buy And Build” clients to provide excellent opportunities for our clients.
We have advanced tools and possibilities of growth in acquisitions, endless opportunities in three types of M & A:
1- Horizontal Mergers;
Firms are in the same line of business, firms established in the territory with the fundamentals of success, like people, process, cash flow and good credit. Buyers using cash flow, extra earning, credit acquiring similar companies in the territory. They gain in costs of sales, advertising, larger purchasing power, labor efficiencies are results of market extension or product extensions.
2- Vertical Mergers;
Firms in different stages of production, acquiring their supplier or distributors or vice versa to gain lower costs, Increased credit worthiness & increased synergies to increase the value of the combined company.
3- Conglomerate Mergers;
For firms that are in different line of business, would like to diversify as they believe they have achieved their greatest growth potential in their segments, usually taking a gradual ownership approach, keeping the key employees and saving the infrastructure. This type of mergers are excellent choice for sellers that are not in rush to retire.
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To summarize;
- Broaden your access to markets, production facilities, channels of distribution or technologies.
- Retirement planning, legacy issues, protecting the work for employees.
- To add capital and or knowledge base to your existing organization.
- Diverging business interest and goals of partners.
- Maximizing your interest at industry transition times.
- Gaining opportunities associated with new ventures.
- Increase asset diversification and manage risks.
- Management succession issues, Health issues.
- Creating or protecting the business franchise.
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What does an M&A adviser charge?
Brent Beshore, adventur.es “Investor Brent Beshore, founder and CEO of adventur.es, a Midwestern-based permanent equity firm, recently published a book called “The Messy Marketplace: Selling Your Business in a World of Imperfect Buyers.” The book helps sellers, buyers, and advisors better navigate the messy process that is selling a small to midsize private company. We’ll be publishing a series of exclusive excerpts from the book. This article is a follow-up to a previous article, Should You Hire an M&A Advisor to Sell Your Business?
Great M&A advisors are rare and highly valuable, hence they get paid well. You will need a lead transaction attorney and a lead outside accountant. If you’re used to spending a minimal amount on low-stakes legal issues, transaction fees can be a shocker. Don’t look at them as a zero-sum. Often a great advisor will charge you a lot and save you money.
All told, expect roughly 3 to 15 percent of the transaction proceeds to be spent in the process, with a minimum spend of $25,000. That’s a wide range and necessarily so based on the levels of complexity, size of transaction, industry dynamics, and buyer choice. Generally, the larger the transaction, the higher the numerical cost, but the lower the fees as a percentage of the transaction.
To work on your behalf (known as a “sell-side engagement”), an intermediary can be engaged under a retainer fee, a success fee, or a combination of the two methods.
Retainer fees, also known as work fees, typically start at $50,000 and go up depending on the size of potential transaction. Some retainer models involve a monthly installment ($3,000 to $15,000), while others are arranged for a term at a flat fee.
Success fees usually represent a percentage of a completed transaction. The details matter in success fee arrangements, as some will require you to pay the full value of all consideration in the transaction to them at close (including cash, debt, equity rolled over, seller note, earn out). Make sure you understand what proceeds are included and when payment is due.
The success fee percentages can be structured in several ways. On smaller deals, the success fee may be a flat percentage — usually 6 to 12% — of the transaction. On large deals (over $50 million), that flat percentage can drop. The workload required by an intermediary to close a deal does not differ tremendously based on the size of the transaction, and actually can be less work for larger companies considering the increased access to resources.
If you engage an intermediary, you will be expected to pay at least a portion of their fee at closing. If an intermediary engages you under the guise that the buyer will ultimately cover your fee, I recommend choosing another intermediary. At best, you will frustrate the buyer and cause trust issues. At worst, the investor will walk when the “game” becomes apparent.
Investors also sometimes engage intermediaries (known as a “buy-side engagement”). The fee structures are similar and their marching orders are to go find potential sellers that are not actively trying to sell their business. There’s a good chance you’ve been contacted by one before. Buy-side intermediaries should not be charging you anything to introduce the potential buyer, as their fees are already covered. To do so is playing both sides, and it is unethical.” We only earn our fees from one side, out committed clients.
We do not charge you any in advance for initial consultation unless you hire us as buy side agent, or as business broker all our fees are success based. The fees in for presenting it in “featured deal” is strongly recommended, but not required. Please feel free to talk to us about this subject.
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We also study and check for you all potentials & possibilities of:
Leveraged buy out;
A leveraged buyout is a financial transaction in which a company is purchased with a combination of equity and debt, such that the company’s cash flow is the collateral used to secure and repay the borrowed money. Wikipedia
The LBO valuation model estimates the current value of a business to a “financial buyer”, based on the business’s forecast financial performance. An already-completed five-year financial forecast and two assumptions are all that is necessary to create a first draft of a comprehensive LBO valuation of the business. Wikipedia
Leveraged Buy In;
A management buy-in (MBI) occurs when a manager or a management team from outside the company raises the necessary finance, buys it, and becomes the company’s new management.[1] A management buy-in team often competes with other purchasers in the search for a suitable business. Usually, the team will be led by a manager with significant experience at managing director level.
Management Buyout; As it’s name implies, A useful article here. By Danielle Fugazy.
Buy-in management buyout (BIMBO)
A buy-in management buyout is a combination of a management buy-in and a management buyout or management buyout. In the case of a buy-in management buy-out, the team that buy out the company are a combination of existing managers, who retain a stake in the company, and individuals from outside the company who will join the management team following the buy-out.[1]