Business expansion is an incredible accomplishment for any entrepreneur. When merging or acquiring a business, it is important to have a good team behind the scenes. A deal of this magnitude can be incredibly daunting and even impossible – without the guidance of an industry expert. A business advisor from Transworld instructs, guides, mediates, and negotiates to ensure you get the best possible deal.
The seller will likely have a business broker in their corner. As their client, their interest is, of course, fighting for the seller’s price and terms. By no means does this broker need to be a neutral party during negotiations. Therefore, hiring your own business broker will go a long way. But first, what does the merger process entail?
Your company qualifies for a merger if it has one of the following characteristics:
- The earnings are more than one million dollars.
- The business is too large for an individual buyer or to finance through conventional methods.
- The company is in an industry that is being “rolled up”.
- The business is experiencing incredible and rapid growth.
- You want to grow the company and retain some equity.
A business broker will assist you during every step of the process, which includes: valuation, creating a strategic plan, networking and marketing the sale, meeting with prospective buyers, solicitations, reviewing inquiries, negotiating the sale, due diligence, and closing the deal. Much like any business sale, a business merger must follow all of the necessary steps – every financial rock must be turned, reviewed, and confirmed.
If you believe your business may qualify for a merger or acquisition, there is no need to go at it alone. The process is long and tedious and must take place while you keep running and managing this highly profitable business. Consider a business broker as your very reliable assistant coach during the Super Bowl – you’re in the lead, but they know the plays, can take over for you at a moment’s notice, and want nothing more than for the team to take home the trophy.
If you are interested in learning more, contact your local Transworld Business Advisors in San Diego today!