Business Acquisitions Advisors

Business Acquisitions AdvisorsBusiness Acquisitions AdvisorsBusiness Acquisitions Advisors
  • Home
  • About Us
  • Why Use a Buyer's Broker?
    • Save Time and Money
    • How Do I Get Started?
    • Who Pays & Who Benefits?
    • Key Buyer Challenges
    • Solutions to Challenges
    • Achieving Optimal Results
  • Services We Offer
  • Areas Served
  • Contact Us
  • More
    • Home
    • About Us
    • Why Use a Buyer's Broker?
      • Save Time and Money
      • How Do I Get Started?
      • Who Pays & Who Benefits?
      • Key Buyer Challenges
      • Solutions to Challenges
      • Achieving Optimal Results
    • Services We Offer
    • Areas Served
    • Contact Us

Business Acquisitions Advisors

Business Acquisitions AdvisorsBusiness Acquisitions AdvisorsBusiness Acquisitions Advisors
  • Home
  • About Us
  • Why Use a Buyer's Broker?
  • Services We Offer
  • Areas Served
  • Contact Us

Overview

Buying a business is seldom a simple process, typically involves the expenditure of considerable amounts of time and money, and always involves risk. No money down acquisitions are a rarity, and if it turns out that you’ve made a bad deal, and fail to realize that until after close, the chances of adjusting the price and terms, or getting your money back are slim. In reality, to have any reasonable chance of obtaining adjustments to price and terms, or a refund of some or all of your down payment after close of escrow, you will need to engage legal counsel to litigate the matter on your behalf and that typically involves the expenditure of real money. In addition, it is common knowledge that when litigation is involved, the outcome is seldom predictable. To make litigation even more potentially expensive, California law provides that the loser of the litigation typically pays the winner’s costs of litigation in addition to the loser’s own costs of litigation. That can really hurt if you’re on the losing side.


While the magnitude of risk involved mainly depends on; (1) the circumstances of the target business at the time of acquisition, (2) the agreed upon price and terms of the deal, and (3) the loan arrangements (whether or not outside financing is involved); a buyer can successfully mitigate risk by becoming knowledgeable about the subject business and the acquisition process, and by engaging competent professional advisors. Knowledge of the business and the circumstances relating to it at the time of acquisition are the keys to successfully minimizing buyer’s risk and can be achieved through both the buyer’s independent research and the assistance from experienced, specialized professionals, including (but not limited to): (1) business brokers, (2) mergers and acquisitions (M&A) advisors, (3) business valuation consultants, (4) specialized business acquisition attorneys, (5) CPA’s specializing in business acquisitions and (6) due diligence professionals. At the very least, an intelligent buyer needs to know exactly what assets are being purchased, the condition and market value of those assets and the implications of available forms of financing before making an offer. In addition to gaining the aforementioned knowledge, the prudent buyer needs to conduct an analysis of the business’ strengths, weaknesses, opportunities and threats. To enter into a transaction to purchase a business without properly researching the business and acquiring sufficient knowledge about it before making an offer, is to risk substantial financial loss. 


In the situation, where a buyer purchases professional services in conjunction with the acquisition of a business from someone independent of the seller and / or seller’s broker, those services solely benefit the buyer. If brokerage services are involved, the buyer’s broker normally represents the buyer’s interests only and the seller represents him / herself, or employs the services of an attorney and / or seller’s broker as the seller’s exclusive agent. 

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Services Available When Seller Is Represented by a Broker

Opinion of Value

A real world opinion of value, that is rational and makes economic sense.  This type of business valuation is commonly known as a broker’s opinion of value / most probable selling price (MSPS) valuation.


Business Assessment Report

A business assessment report includes:

  1. Broker’s opinion of value / most probable selling price valuation, includes comparative income statement schedules and calculation of Seller’s Discretionary Earnings (SDE)
  2. Overview of the subject business 
  3. Overview of the industry in which the subject business operates
  4. Analysis of strengths, weaknesses, opportunities and threats to the subject business (also known as SWOT analysis)


Note: A business assessment is typically not needed when the target business is being represented by a seller’s broker, because much of the information that appears in a business assessment would be provided by the listing broker as a matter of good practice. 

Assistance in Arranging Financing for the Proposed Acquisition

Assistance in finding an SBA lender to finance the proposed acquisition and getting:

  1. The transaction pre-qualified, and
  2. The prospective buyer pre-qualified

Single Agency Buyer Representation

Business Acquisitions Advisors will provide prospective buyer with:

  1. Basic buyer education
  2. Initial analysis regarding information provided by seller (limited to information initially provided in seller's advertising or provided to buyer prior to BAA becoming involved) 
  3. Offer strategy
  4. Offer preparation utilizing California Association of Business Brokers (CABB) forms
  5. Offer presentation to business owner and seller's broker
  6. Negotiate price and terms on behalf of buyer, to obtain the lowest price and best terms (for buyer) that a seller will ultimately accept.
  7. Assist with buyer's due diligence
  8. Assist in finding a lender to finance the acquisition
  9. Represent buyer's interest in facilitating the transaction to a successful close.

Services Available When Seller IS "For Sale by Owner"

Opinion of Value

A real world opinion of value, that is rational and makes economic sense.  This type of business valuation is commonly known as a broker’s opinion of value / most probable selling price (MSPS) valuation. 

Business Assessment Report

A business assessment report includes:

  1. Broker’s opinion of value / most probable selling price valuation, includes comparative income statement schedules and calculation of Seller’s Discretionary Earnings (SDE)
  2. Overview of the subject business 
  3. Overview of the industry in which the subject business operates
  4. Analysis of strengths, weaknesses, opportunities and threats to the subject business (also known as SWOT analysis)

Assistance in Arranging Financing for the Proposed Acquisition

Assistance in finding an SBA lender to finance the proposed acquisition and getting:

  1. The transaction pre-qualified, and
  2. The prospective buyer pre-qualified

Single Agency Buyer Representation

Business Acquisitions Advisors will provide prospective buyer with:

  1. Basic buyer education
  2. Initial analysis regarding information provided by seller (limited to information initially provided in seller's advertising or provided to buyer prior to BAA becoming involved)
  3. Offer strategy and planning
  4. Offer preparation utilizing California Association of Business Brokers (CABB) forms
  5. Offer presentation to business owner and seller's broker
  6. Negotiate price and terms on behalf of buyer, to obtain the lowest price and best terms (for buyer) that a seller will ultimately accept.
  7. Assist with buyer's due diligence
  8. Assist in finding a lender to finance the acquisition
  9. Represent buyer's interest in facilitating the transaction to a successful close.

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