Problems of Family Owned Businesses Private Equity and How to Close Deals
 
  The Three Essentials of Selling Your Business

Private Equity New Offering

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Create Competition
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Creating competition among potential buyers is the ultimate goal. A buyer without competition will offer less than the actual value of a business. When a buyer knows several other candidates are interested the potential to maximize the offer price received is greatly enhanced.

Attractive Presentation Packaging
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Poor packaging and presentation of a business is one of the major problems faced by sellers.We spend hours pouring over your business so that we understand the business as well as you do. We have professionals on our staff that will prepare historical, marketing, and financial overviews of the business which will be presented to interested, qualified buyers. This will allow them to see the economic performance of the company and the intrinsic value of the business, enabling an educated and informed buying decision which leads to a higher offer.

Confidentiality
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Confidentiality is essential in any selling process. We prevent your information from being presented to unqualified buyers. Just as we need complete financial information on your business in order for buyers to make an intelligent buying decision, we require potential buyers to provide proof of financial ability to acquire your business.

  Four Steps to a Successful Transaction
 
  What Can You Do to Help
Problems of Family Owned Businesses 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.

 
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.

 

Private Equity New Offering
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