Sun Mergers and Acquisitions Forum Sun Mergers and Acquisitions: ..
Sun Mergers and Acquisitions: Business Sale Process10 Years AgoManagement
of the Business Sale Process
We
manage the business
sale process from inception to completion. Key areas in which we add
significant value are described throughout the phases below. Confidentiality Sun
Merger & Acquisition, LLC has proactive methods to ensure a confidential
business sale. Our partners and employees will not disclose a client’s identity
or other confidential information without our client’s approval. Each
descriptive brochure and marketing document only references a client number, in
lieu of name or location, and receives full client approval before
dissemination. Confidentiality and Non-Disclosure Agreements are signed by all
potential acquirers. Precautions are taken to protect confidentiality in a way
that would not be possible without our professional involvement. Defining
Options and Exit Strategies A
wide array of options are available when structuring a confidential business
sale. Sun M&A works with the client to understand selling requirements and
strategic goals. This includes defining: -
Exit strategy alternatives -
The most appropriate types of acquirers -
Valuation expectations -
Timing of sale -
Likely tax consequences -
Owner’s desire for future involvement with the company An
outright sale of the company is not necessarily the best option. Other options
include: retaining an equity stake in the business; selling to employees;
identifying a working or investing partner; and other hybrids. We will help the
client to understand the options and determine the most appropriate direction
to pursue. Valuing
Your Company Our
philosophy is that fair market value is the minimum value that should be
targeted in a sale. By identifying synergistic industry and financial buyers,
we achieve a transaction that often exceeds the fair market value. Sun M&A
analyzes a firm’s strengths, hard and intangible assets, financial performance
and expansion opportunities. Utilizing proprietary databases enables us to
analyze purchase price comparisons of completed business sales in your
industry. Our constant market exposure provides us with a unique and current
understanding of transaction values and deal structures in today’s marketplace.
This provides the client with an understanding of the likely value expectation,
in advance of beginning the selling process. Recasting Proper
interpretation and presentation of financial information is a crucial step in
the selling process. Financial statements are typically prepared for tax
purposes, not for business sale purposes, and do not accurately reflect the
true profitability and potential earnings capability of a business. Acquirers
must be able to “read between the lines” of the financial statements and tax
returns to appreciate the total discretionary pre-tax income that would be
available to them. Failure to properly present true “re-cast earnings” reduces
the perceived value of a company. There are more than 60 potential recasting
adjustments that must be considered. Sun M&A works with the client and its
CPA to ensure that all applicable adjustments are identified and that the
financial presentation is maximized. Value
Enhancement Strategies We frequently work with
owners to analyze and suggest value enhancing opportunities and initiatives.
When implemented at the outset of the sale process, these strategies will
enhance marketability and increase the value received from a transaction |