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Category: Business Brokerage Consultant

Owner / Representative Partnership
Business Broker Newsletter, Business Brokerage Consultant

Owner / Representative Partnership

Mar 12, 2017 by The Montana Group 0 Comments

The process of selling a business requires the mutual confidence between the owners and their representatives. It is essential that this go both ways. The owners are probably selling their most valuable asset and a similar sale will likely never happen again for them. The representative needs to feel as though their client does not begrudge the fee but understands and embraces the mutual benefits by properly incentivizing their representative.

The theme of this relation is that everything of financial benefit to the sellers should be part of the fee calculation. This obviously begins with the business’ sale price but extends well beyond. This could include additional money from a closing working capital balance sheet improvement, from personal asset that are in the business but are distributed to the seller at closing (e.g. car), or from something unique to this particular company. Also, incurring expense savings such as the assumption of interest bearing debt by the buyer is an important enrichment. Sellers must make sure their representative feels very confident that even if a financial benefit is not specifically listed in the fee schedule that the owner’s philosophical desire is to pay for what is received.

The incremental increases beyond the agreed upon purchase price is what makes it critical when selecting a representative. A representative that is very good often more than pays their transaction fee with incremental increases over and above the sale price, often in areas that would not be known by a company owner who has no experience in where to locate them. This also amplifies why an owner, rather than attempting to sell the business directly, needs a very experienced consultant who through many many closings knows where to find the extra benefits. The same can be said of the owner’s accounting and legal advisors who’s training and daily focus is not on selling businesses. In summary, the representative/consultant needs to offer a fee agreement in such a manner as to participate from the various ways to escalate the overall financial benefits to the sellers, which is the intent of a mutually beneficial relationship.

Benefits of Working with The Montana Group
Business Brokerage Consultant, Uncategorized

Benefits of Working with The Montana Group

Dec 4, 2016 by The Montana Group 0 Comments ,

Benefits of Working with The Montana Group

Experience You Can Depend On: Your talent is running a business. Ours is selling a business. The Montana Group brings many years of mergers and acquisition experience to each transaction, including in-depth industry knowledge, a sound background in finance and accounting, and especially strong negotiating skills. We take the time to get to know you and your business so that we can more accurately represent its value to prospective buyers. We identify the nuances that enhance its worth and desirability. Whether you lead the competition in your geographic territory or industry, boast outstanding customer retention, or have a masterful management team, we will utilize this to negotiate the highest price for your company’s particular expertise. You will walk away from the sale process confident that you have received an exceptional return on your business investment and yet the buyer will feel secure in the knowledge that he has obtained an outstanding company. Since 1991, we have worked hard to ensure that our clients were glad they chose The Montana Group.

Personal Relationships and Hands-On Involvement: Success comes from hard work, a willingness to roll up your shirtsleeves and do whatever it takes to get the job done. You know. You’ve done it. And you can expect the same from The Montana Group. Business Brokerage isn’t a sideline with us. Per our Founder and President, Emmett Barnes, “It’s what we do – all day, every day”.One-on-one Attention: Our Principals are your partners from contact to closing. They will be in constant communication with both you and the buyer to keep the process on track and to attempt to quell every concern. We work toward an orderly and efficient sale of your business.

The Quiet Approach: You didn’t build your business with a lot of fanfare and you don’t want to sell it that way either. That’s why The Montana Group employs its Quiet Approach to business brokerage. When you select The Montana Group as your business broker, you are engaging the resources of professionals who understand the need for efficiency and confidentiality. Our job is to work quickly and quietly for a successful sale, yet minimize the potential disruption for the business. Your job is to conduct business as usual to ensure the continued success of your company. It’s a proven partnership that works.

No Retainer: By not requiring a retainer, it affirms that we will only accept your business listing if we feel comfortable in our ability to selling a business at a price acceptable to you. Consequently, we are in concert with you.

Business Evaluation: We will gladly provide a complimentary business valuation for those businesses with a minimum of $2 million of annual pretax profits.

Experience: All Partners involved have a minimum of 15+ years of experience selling businesses.

Accounting: After executing our Listing Agreement The Montana Group provides a recast of your business’ Income Statements and Balance Sheets at no charge. This enhances your business valuation by increasing your cash flow income stream; the most influential component to pricing a business.

Our Network of Buyers: Since our inception in 1991, we focused on developing an extensive buyer database which currently has in excess of 500 prospective business buyers, each with a fund of at least $50 million and a drive to invest it. Our goal is to locate potential buyers who have an enthusiasm for acquiring within the industry of our client. The dynamics affecting the appetite for acquisition change constantly so it is essential that we continually expand our reach for the perfect match. Of course, we always get our client’s approval on which we approach to discuss the purchase of their Company. We know that a key to the success of The Montana Group is our comprehensive database of qualified and motivated buyers and the relationships we have built with them.

 

How can The Montana Group help the Business Owner?
Business Broker Newsletter, Business Brokerage Consultant, Uncategorized

How can The Montana Group help the Business Owner?

Nov 2, 2016 by The Montana Group 0 Comments , ,

As we have consulted in the sale of businesses since 1991 we have learned what is appealing and what is of concern to the potential buyers. This is why we believe we are best described as consultants who analyze a business from the perspective of the buyers and make recommendations that should ease concerns and increase enthusiasm for the acquisition of a business. Often these suggestions are not difficult to implement and have a short lag before there is apparent improvement in the company’s profit or simply eliminate some operational issues going forward that could negatively influence the buyers.

Additionally, The Montana Group will provide its accountant to review the balance sheets and income statements for the prior three years and the current year to date financial information. We will also construct a budget for the remaining fiscal year, as well as, the next one. The potential buyers will use this to determine their valuation so it is critical that this information is provided in a format that best positions the business. The experienced consultant should more than cover their fee with this part of the presentation.

The summary narrative of the company is necessary in order to gauge the initial interest of the buyers and the buyers’ motivations should be such that their enthusiasm for the company raises their offer. A well-written narrative can enhance this.

It is important that interested buyers understand the sellers’ representative’s past successes and ability to bring competition into the process. Of course, buyers prefer not to pay any more than is necessary so they need to feel that in order to acquire the company their bid must be competitive. A consultant with many completed transactions will know how to properly enhance the ultimate transaction price but also in additional seller benefits, which can be substantial.

“Selling a business is a once-in-a-lifetime and lifestyle change that often affects multiple generations. So, use a specialist with years of experience. While this can be done by the business owner in an attempt to be frugal, our 25 years with this specific focus tells us that often the owner is reducing the sale price in multiples over the money saved from not paying a success-based consulting fee.”, says Emmett Barnes, President and Founder of The Montana Group. (www.montanagroup.com)

 

Business Brokerage Consultant, Uncategorized

Business Sellers’ Contemplations

Oct 3, 2016 by The Montana Group 0 Comments

Use an Intermediary. The business sale process is probably very different from any sale process that you have attempted. Plus, it’s a once-in-a-lifetime occurrence. An experienced and successful consultant will represent the owners and the owners only. Sellers who represent themselves almost always leave money on the table as they have not prepared the business’ financials in the manner that promotes their business, something that very successful business broker adviser’s have a knack for recasting. This is expensive money to save. The experienced intermediary who has traveled this road many times will know well-qualified advisers to recommend as needed (e.g. accountant, attorney). This consultant will provide an almost limitless list of potential buyers that should be reviewed with the owners for their approval before any contact, confidentiality agreements for execution by potential buyers, a thorough and clear offering memorandum that presents a business in a manner that promotes it, provide financial data in a clear industry standard manner, and shepherd the process along to ultimately find the mutually beneficial buyer to acquire the company under terms to the satisfaction of the owners.

During the sale process continue to focus on the operations of the business, even if overburdened by the due diligence requests. If a business begins to lose its positive financial trends the seller is understandably worried and worries that this could be more than a temporary aberration. The value of a business is greatly affected by its perceive immediate and long-term future. Nothing increases the value like financial success.

Be prepared for a very detailed and beyond thorough due diligence. It is often stressful so hunker down and take a deep breath. It’s not fun and often beyond reasonable but it is unavoidable. The best advise is to keep a list and a copy of what was provided so when it is again requested it can be easily located. Remember, there is a pot of gold awaiting you, so hang in there.

“Selling a business is a once-in-a-lifetime and lifestyle change that often affects multiple generations. So, use a specialist with years of experience. While this can be done by the business owner in an attempt to be frugal, our 25 years with this specific focus tells us that often the owner is reducing the sale price in multiples over the money saved from not paying a success-based consulting fee.”, says Emmett Barnes, President and Founder of The Montana Group.