FAQ
What does a merger and acquisition specialist do? Can't I sell
my business on my own?
The best thing a business owner can do to optimize results is
to focus on running the operations of the business. We help you:
- Expertly market your business in a highly
confidential manner
- Attract the best possible price for your company
because of our ability to locate more than one qualified buyer
and because of our years of experience negotiating and structuring
successful transactions.
- Structure a deal that allows you to receive
the maximum after-tax benefit.
- Coordinate your team of tax advisors, accountants,
attorneys, etc., to ensure that the transaction is done in your
best interest
- Negotiate and close a successful transaction.
It is best to have an experienced professional
help you negotiate. You will put yourself at a severe disadvantage
if you attempt to negotiate on your own against experienced
acquirers and/or experienced M & A professionals representing
acquirers.
How do I find out what my company is worth?
We provide you with a valuation of your company. Our years of experience,
valuation methods, and review of comparable sales of privately held
companies will provide you with a valuation indicating what your
company could sell for in today's market.
How does BTI Group find buyers?
Our buyer search is tailored to each company. First, we develop
a marketing strategy and campaign for your business. Next, we utilize
several databases including buyers who have approached us in the
past and are now part of our qualified buyers database as well as
external databases of nationally and internationally based companies.
We also network with other intermediaries and buyers through various
organizations. Strategic buyers are typically targeted and approached
by direct mail or telephone. Discreet marketing may also include
newspaper advertising, trade publication advertising, and ads placed
on high traffic M&A websites.
I want to keep the sale of my business confidential. I don't
want my employees, customers and vendors to know that my business
is for sale. What steps do you take to ensure confidentiality?
Most sellers share your concern. Our procedures are designed to
protect confidentiality. First, all interested buyers must sign
confidentiality agreements and must be financially qualified before
any detailed information is disclosed about your company, including
its identity. All external advertisements for your business are
written in a discreet format providing a general description that
does not contain enough information to allow someone to determine
that it is your company that is for sale. All materials, descriptions,
financial statements, and marketing materials are pre-approved by
you.
Do I need a lawyer and/or an accountant?
Merger and acquisition specialists from BTI Group do not take the
place of a lawyer or accountant. You are encouraged to seek legal
and tax advisory services prior to closing any business transaction.
We highly recommend that the attorneys and CPAs you use for the
sale or purchase of a business be well experienced in M&A transactions.
Over the years, we have worked with many qualified professionals
in this area; we can refer you to them as needed.
How long is the exclusive marketing agreement?
The initial term of an Exclusive Marketing Agreement is 12 months.
What is expected from a seller in order for BTI Group to conduct
a valuation and to start marketing a business?
- 3 years income tax returns, income statements,
and balance sheets.
- Current list of equipment, fixtures, and inventory.
- A copy of your lease with details such as square
footage, space availability, rent expense, terms, options, etc.
- Information about property or real estate owned
or used by the business.
- Breakdown of employees with titles, salaries
and a short biography for each member of the management team.
- Photographs of facility, equipment, and location,
etc.
- Legal documentation for any patents, intellectual
property, etc. ·
- Marketing materials such as copies of advertisements,
magazines, articles, Yellow Pages ads, newspaper articles, etc.
- Other documentation specific to your business.
- We will provide you with a list.
You will also need to participate in a thorough interview
allowing us to learn about your business to effectively represent
you and your company.
I want to buy a business (I am a strategic, financial, and/or
individual entrepreneurial buyer.) How do I become a qualified buyer
and get to review the businesses you have for sale?
First, contact us to introduce yourself.
We then fax you the necessary forms such as a Confidentiality Agreement,
Statement of Business Experience, and Statement of Financial Resources
for you to complete. Once we have received the signed confidentiality
agreement and additional data, we will contact you to discuss the
business opportunities that best fit your profile.
Why must I sign a confidentiality agreement?
We are dedicated to servicing the confidentiality needs of our clients.
Signing the confidentiality agreement is a painless process in which
you promise not to disclose any information that we give you about
a business, including the business name, owner information, etc.
Breaches or leaks of confidential information can cause customers
to move on, employees to quit, and vendors and lenders to get nervous.
This can be detrimental to both the buyer and seller.
How does BTI Group get paid?
We are paid for success and therefore receive a transaction fee
at the close of the transaction. In addition, small fees may be
required to handle the cost of business valuation and the preparation
of the Confidential Business Review. If you have been considering
the sale of your business or looking for acquisitions that meet
your investment criteria, please contact
us to arrange a confidential consultation.
