Business Valuation
Determine what your business is really worth. The single greatest reason a business does not sell is that the business is not priced correctly. It is our policy that our listing clients undergo a confidential Business Valuation and Review. This informs prospective buyers and their advisors about the history, strengths, weaknesses, opportunities and most importantly, the intangible values of your business. When professional third party appraisals are included in the packaged presentation, more than twice as many businesses sell. Better yet, they sell for amounts significantly closer to the original asking price. In addition, it makes financing much easier to obtain. All direct and related expenses associated with obtaining a third-party appraisal, if any, are refunded to the seller at closing.
Marketing
A Confidential Memorandum is prepared to enhance the presentation of vital business information for presentation to buyers. The marketing of each business will depend upon the size and type of business and the number of potential buyers in our database. Aaron Morgan Group uses the local paper in major cities, the Wall Street Journal, USA Today, plus our database of over 30,000 investment groups. We publicize engagements on our own and several other internet sites and send direct mail to prospective buyers to generate as much activity as we possibly can. Discretion and confidentiality are greatly considered when we advertise. We do not list the business name, location or any other information specific to the actual business.
Negotiations
We handle negotiations in an ethical, patient, professional manner that keeps the business issues clearly in focus, rather than clouded by emotions or personalities. Aaron Morgan Group provides skilled, exclusive, personal representation at all negotiations. We understand the sensitive issues of both buyer and seller and offer guidance in structuring a transaction to effectively address these issues.
Due Diligence
A considerable percentage of transactions breakdown during the due diligence phase. Aaron Morgan minimizes this risk. The extensive time and effort to collect accurate data on the business pays dividends when good documentation has been presented, saving time and resources with the due diligence. We bring all our resources together to ensure that the deal remains intact and that momentum is maintained and remain at your side through this crucial period until the transaction is successfully concluded. |
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While businesses vary greatly from one another, there are critical elements to all business transfers that, with proper attention will greatly increase the likelihood of a successful transaction being completed at a price close to the asking price.
Keep Your Eye on the Ball
Selling your business can become a significant distraction. It is critical that as an owner, your focus remains on the execution of the day-to-day operations; sales, cost-control and serving customers. Engaging Aaron Morgan to market your business allows you to do just that.
Keep Your Business and Records in Shape
It is absolutely critical that financial records be kept completely up-to-date, and monthly financial statements are timely prepared while your business is held for sale. Serious buyers will not look at a business if the financial statements are four months old. Likewise, improving the physical appearance, inventory and equipment are all important when inviting potential buyers into your business.
Be Willing to Stay Involved
It is likely the buyer will require your input during a reasonable transition period. It is fairly common to expect a transition period of up to ninety days. Your willingness to provide this support demonstrates to prospective buyers that you are serious about their success as well.
Remain Flexible on Terms
There is an old saying for buyers, “it's not what you pay but how you pay it." Valuation experts point out that statistically, owners demanding an all cash deal will receive a significant discount, perhaps as great as 40%, on fair market value when compared with deals including seller-financing as a component.
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