
SELLING YOUR BUSINESS
- Is selling the best solution for your company?
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If you don’t have a succession plan in place, selling may be the best option. Then the questions come. What do I do with my business? How can I cash out? How do I find a buyer? How do I keep building my business while finding a buyer? Who in my business do I tell and how do I keep the deal secret until it’s complete? How much is my business worth? Do I take back paper or sell for all cash? How do I mitigate the tax consequences? Do I continue to work for the new owner or go on that around the world vacation? What happens in the deal falls apart at the last moment? Given the economy, is this the best time to sell my business?
- Selling a business requires far more than simply finding a buyer.
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The first step is strategic, and leads to a plan that supports a successful transaction. While this may require conversations with the owner and key staff, as well as an examination of the financial statements and product/service strategies of the company, we respect the need for total confidentiality and have a track record of successfully completing transactions in complete secrecy and with minimum interruption to on-going business operations.
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It’s important to understand the metrics and ROI for acquisition vs. organic growth. You need to ask yourself, what are the steps and how do I find the right company to buy? What will it cost and how do I pay for it? How can I ensure that the price I am paying is profitable to me? I don’t have a lot of cash, so how do I make this work? What if I don’t like the owner and want him out of the combined business? How can I entice the owner to stay on board? What impact will this have on our management team? How disruptive will this be to my ongoing operations? What do I do to encourage the customers of the acquired business to stay with the new company? What if there are skeletons in the seller’s closet?
Acquisitions are driving the growth strategies of many Aftermarket enterprises.
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While managers understand that acquisition is often the most efficient and cost-effective way to grow a business, they often underestimate the work required to purchase and integrate the acquired company into the fold. Marx Group Advisors can help identify and prioritize potential acquisition opportunities, make discreet investigations to find potential sellers, and bring qualified prospects to the buyers. We also support legal and accounting due diligence and advice on capital resources when needed. MGA has a selection of finance partners that can help execute acquisitions, roll-ups, equity plays and financing-for-growth.
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One of the most important factors in a successful sell or buy strategy is the design and implementation of effective M&A strategies that a) reflect available resources and b) can provide the support that is often needed.
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Buyers look beyond products and services to the systems that are in place and the quality of the customer base. Sellers look for buyers that are financially sound and represent the best move for their company culture. Marx Group Advisors will help get financial statements in order, provide foundational valuations and help integrate the culture, products, services and management teams into a powerful and successful enterprise. We can provide clients with access to sources of growth capital for expansion, buyouts, recapitalization, private placements and other financing needs.
It all starts with a grounded strategy and a fulfilling partnership. Turn to Marx Group Advisors – the team you can trust.
BUYING A BUSINESS
Is it the right time for you to expand?
GETTING THE RIGHT ADVICE
A well thought-out strategy is critical.
