Selling and Buying of Businesses
I am a licensed business broker and have experience in representing both the sellers and buyers of businesses. Business transactions are not just about getting the best price. That is only where it starts. It is about negotiating the best overall deal including legal structure, time frames, managing the due diligence process, guarantees and the overall ebb and flow of the deal.
The first step in selling a business is to determine why the owner(s) want to sell and what they will do the day after the sale. Maybe the goal is to retire or to start a new company. Maybe they have received an offer that is too good to pass up, or perhaps it’s time to exit before the market dries up entirely or before the partners do bodily harm. Most importantly, the owners need to understand why they are selling and what the day after the sale goes through will look like for them.
The second step is to prepare the business for sale to anticipate and correct anything that is likely to cause a problem during due diligence. If a company is not prepared, the best they will ever get for the company from a prospective buyer is in the letter of intent. Without preparation, value (and a buyer’s interest) will fall in the due diligence stage. All financial, operational, or personnel records need to be in top shape before the company is put up for sale. Our firm prepares a memorandum for sale of the business including research to help the owners determine an appropriate price. We assist in finding the buyer, and represent the seller in due diligence. We understand how to communicate to various audiences involved — employees, customers, business partners and suppliers. We help company leadership develop their message, always keeping in mind that the best communications are consistent and forthright. Most importantly, we provide an acute sense of timing during negotiations to achieve optimal results.
For companies with the leverage and/or resources, acquisition is often an effective way to expand the product line, acquire customers, or disable the competition. Based on client goals and needs, I research and identify potential companies, the likelihood of them being available for purchase, an estimated market value and a target price. I then deconstruct a potential candidate to understand the company’s business strategy, product line (current and projected), and financials. I represent the buyer in due diligence, engaging outside expertise as required and agreed to by the client.
Barry has personal experience in every phase of business and is not afraid to ask his clients hard questions, the answers to which are critical to business growth.