Transitions In Business’ Post

Do you know how to ensure your business is ready for sale? For many business owners the dream is to one day sell for a rewarding figure, but like most successful results this is unlikely to happen without putting in the work beforehand. Having helped many of our clients prepare for and execute a sale these are the 7 key steps that we know pave the way for the best outcome. https://bit.ly/48gvHLC

𝐄𝐯𝐞𝐫 𝐟𝐞𝐞𝐥 𝐥𝐢𝐤𝐞 𝐬𝐞𝐥𝐥𝐢𝐧𝐠 𝐲𝐨𝐮𝐫 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐢𝐬 𝐥𝐢𝐤𝐞 𝐫𝐨𝐥𝐥𝐢𝐧𝐠 𝐝𝐢𝐜𝐞? Well, you're not wrong... Did you know 𝘰𝘯𝘭𝘺 10% 𝘰𝘧 𝘤𝘰𝘮𝘱𝘢𝘯𝘪𝘦𝘴 𝘧𝘰𝘳 𝘴𝘢𝘭𝘦 𝒂𝒄𝒕𝒖𝒂𝒍𝒍𝒚 𝘤𝘭𝘰𝘴𝘦? Yikes! But let me introduce you to MY 𝘴𝘦𝘤𝘳𝘦𝘵 𝘸𝘦𝘢𝘱𝘰𝘯: Meet 𝐀𝐂𝐓 𝐂𝐚𝐩𝐢𝐭𝐚𝐥. We’re not just an investment bank. We’re redefining HOW you sell your business. How, you ask? Simple: 𝐑𝐄𝐒𝐔𝐋𝐓𝐒 While the industry closes a 𝘮𝘦𝘳𝘦 10%, ACT Capital sells a whopping 90% of its mandates. 𝘛𝘩𝘢𝘵’𝘴 𝘳𝘪𝘨𝘩𝘵— 90%. 80% of companies for sale are marketed to just a 𝘧𝘦𝘸 𝘣𝘶𝘺𝘦𝘳𝘴. Not with us! We reach out to 𝐎𝐕𝐄𝐑 400 potential buyers for EACH client. 𝘠𝘰𝘶𝘳 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴 𝘨𝘦𝘵𝘴 𝘵𝘩𝘦 𝘦𝘹𝘱𝘰𝘴𝘶𝘳𝘦 𝘪𝘵 𝘥𝘦𝘴𝘦𝘳𝘷𝘦𝘴. Here’s another fact: 90% of companies for sale get just 1 𝘰𝘳 2 𝘣𝘪𝘥𝘴. Ouch! Our customers? 8-10 𝑭𝒆𝒆𝒍 𝒕𝒉𝒂𝒕 𝒅𝒊𝒇𝒇𝒆𝒓𝒆𝒏𝒄𝒆? But we don’t stop at numbers. When a deal closes, unforeseen expenses can EAT UP your hard-earned cash. Not with us. ACT Capital sells at 30% 𝐡𝐢𝐠𝐡𝐞𝐫 𝐩𝐫𝐢𝐜𝐞𝐬. AND we cut your 𝘊𝘢𝘱𝘪𝘵𝘢𝘭 𝘎𝘢𝘪𝘯𝘴 𝘛𝘢𝘹𝘦𝘴. So, what are you waiting for? 𝐄𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞 𝐭𝐡𝐞 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞. A new dawn for business owners. 𝘛𝘪𝘮𝘦 𝘵𝘰 𝘳𝘰𝘭𝘭 𝘵𝘩𝘰𝘴𝘦 𝘥𝘪𝘤𝘦 𝘸𝘪𝘵𝘩 𝘤𝘰𝘯𝘧𝘪𝘥𝘦𝘯𝘤𝘦. We make the odds work in 𝒀𝑶𝑼𝑹 favor.

Understanding what buyers look for when purchasing a business is crucial for small business owners aiming to sell their enterprises. A key factor that significantly influences a buyer's decision is the business's ability to generate enough cash flow to cover debt service, especially if the purchase is financed through a loan. This article delves into the intricacies of this requirement and offers insights into how small business owners can prepare their businesses for sale, ensuring they meet the expectations of potential buyers.

Are you ready to sell your business? Regardless of your circumstances and motivations for selling, there are personal and financial factors that should be considered before you initiate the sale process. Our first in a series of posts highlights some of the questions you should be asking yourself.

"Deciding to sell a company is a huge step, but it’s only the first in the intricate process of selling a small business. To prepare for what lies ahead, this is an overview of the steps to selling a company. Before doing anything drastic, take a few moments to understand what a #businesssale entails." https://lnkd.in/ePSpX6KW

Before you think about selling your business, read this short article.

Curious about selling your business but concerned about getting full value upfront? Our latest blog from Transworld Business Advisors of Atlanta North explores the "earn-out" method, a flexible option that allows sellers to receive additional compensation over time, based on the future performance of the business. This approach can be a win-win for both sellers and buyers, offering a balanced way to close a deal when immediate financing may not be fully available. Dive into the details and see how an earn-out might be the right strategy for your business sale. https://lnkd.in/ebJHs7qq

Thinking of Buying a Business? Here are 5 Steps to Success (and Pitfalls to Avoid) 1. Identify the Right Business: Ensure it aligns with your interests and skills. Don’t buy a restaurant if you know nothing about food or just because it seems profitable. 2. Conduct Due Diligence: Investigate thoroughly. Skipping this step can lead to unexpected financial and legal issues. For instance, you might miss a $5 million EIDL loan attached to the business, turning a great deal into bankruptcy. 3. Secure Financing: Arrange funds carefully. Don’t overextend yourself or rely on unstable sources. Many claim to be investors until it’s time to close the deal. 4. Negotiate Terms: Be clear and thorough. Rushing negotiations can lead to unfavorable conditions. 5. Complete Legal Processes: Finalize properly with a competent lawyer. Ignoring legal documentation and regulatory approvals can cause serious troubles, but be cautious of lawyers who get bogged down in improbable theoretical issues, missing the client's goals and jeopardizing the deal. Following these steps, while being aware of potential pitfalls, can help ensure a successful business acquisition.

Let me count the ways a small or medium sized business (SMB) owner can leave money on the table selling the business:   1. Sale because the owners cannot get along and there is a dispute. The owners sell without settling the dispute, and the buyer is able to take advantage of the dysfunction of the owners.        2. A key owner-manager leaves the business (death, disability, or withdrawal), and the business has no buy-sell arrangement among the owners. A buyer is able to purchase at a discount citing the business’ inability to perform.        3. The majority owner, who is also the CEO, has not kept the business current with the market. The revenue of the business has declined to the point where the business is being liquidated due to lack of financing and buyer interest.        4. The business attracted a sophisticated buyer who conducts a diligence investigation and discovers a large number of issues requiring immediate remediation. The buyer is will to go forward only at a substantial discount. Where an owner adopts and executes the Prior Diligence strategy, the sale of a business can be for the maximum value with no money left on the table. Rick Riebesell, an experienced business consultant, has outlined the Prior Diligence strategy in a series of posts on his Substack called Owning a Business (rickriebesell.substack.com). 

Selling your business is a big decision that will affect your entire life. You want the best possible outcome of your business sale, but you don’t want to spend the proceeds paying professionals unless they add value to the transaction. https://bit.ly/3XHIrJC