BlackbridgePartners LLC - Mergers and Acquisitions
BlackbridgePartners LLC - Mergers and Acquisitions
Blackbridge Partners LLC Strategic Solutions For
BUYERS, SELLERS
AND INVESTORS
Business Sales

Despite the current economic environment there are many strategic and financial buyers actively seeking to acquire businesses.

Click on the below next to a question to see the answer.

A. What are buyers looking for ?
  1. Profitability: Businesses with revenues of $5 million or more that are currently solidly profitable are of the greatest interest, however many buyers are prepared to consider businesses that are experiencing recent profit declines or even small losses if the buyers can understand the context and the upside.
  2. Opportunity: Both strategic and financial buyers need to understand the longer term opportunity that the potential acquisition offers.
  3. Transparency: Closely held businesses are run to support the owner's lifestyle but to get the best value in a sale the operations and financial reporting must be made very clear.
  4. Transition: Buyers need to understand how the business will transition to them. A carefully constructed transition plan can benefit both the seller and the buyer.
 
B. Is this a good time to sell?
  1. Most businesses are interested in positioning themselves for the economic recovery, a strategy that often includes the acquisition of other businesses. That creates opportunities for sellers.
  2. Undercapitalization and lack of access to loans on reasonable terms can be resolved by finding the right equity partner (a minority or majority investor) to enable you to position your business to profit from the economic recovery.
  3. While there are a lot of bottom feeders about, a well managed and well structured sale, even while revenues are down, will allow you to take money out of the business now and profit from the coming economic upturn.
  4. You should keep in mind that the Long Term Capital Gains tax (which applies to most business sales) is set to rise from 15% to 20% on January 1, 2011 and the current administration’s stated aim is to raise it to 25% some time after that.
 
C. What questions should I ask myself?
  1. Is the timing right for you? Do you want to take capital out of the business or exit the business completely? What is your price expectation and how did you arrive at it?
  2. Is the timing right for your business? Do you expect your business to perform well against its competitors during the economic recovery and beyond? Would it do better with more capital or as part of a larger enterprise?
  3. Are you motivated? Are you prepared to commit yourself to the process of working with M&A professionals to find the right buyer and close a transaction on the right terms?
  4. Are you organized for a sale? Do you have your last three years of Profit and Loss statements in order? Is your ownership concentrated in the hands of the motivated sellers? Are all legal, environmental, etc. issues resolved?
 
D. What NOT to do?
  1. If you're considering a sale don't delay talking to an M&A professional.
  2. Don't pay anyone a fee to evaluate your business for a possible sale because they are not M&A professionals.
  3. Don't rely on advice from people who are not experienced M&A professionals.
 
E. What to do next?
  1. Address the questions under "C" above.
  2. Give Blackbridge a call (617-274-2404) to commence a confidential exploratory discussion without commitment on either side.
 
F. What does Blackbridge do?
Selling your business for the best value is a thoughtful and methodical process that requires the expertise to present the business in the best light, to source the right partner, negotiate the best price and structure, and work through the complex process of coordinating legal, accounting and due diligence experts to ensure the deal closes.
  1. We do our own due diligence, at our own expense, before each engagement to ensure that we are the right partners for your business.
  2. We target hundreds of potential qualified buyers in the US and abroad using a four page Blind Profile to generate interest while preserving your business's anonymity and protecting your relationships with customers, suppliers and employees.
  3. We ensure that qualified potential buyers who sign a Confidentiality Agreement can understand the added value of the acquisition in their own hands by presenting your business and its context to them in a detailed 40-60 page confidential memorandum.
  4. We bring multiple potential buyers to the table to compete for your business to ensure that you get the best possible outcome. Competition always benefits the seller.
  5. We actively manage the process through the closing.
 
The Seller services that we provide includes:

  • Financial Analysis and Recasting
  • Business Analysis
  • Market Analysis
  • Development of Blind Profiles
  • Preparation of Confidential Memoranda
  • Selection of Strategic and Financial Targets
  • Marketing of the Opportunity
  • Initial Engagement with Targets
  • Vetting of Prospective Buyers
  • Evaluation of Letters of Intent
  • Management of the Auction Process
  • Deal Negotiation and Structuring
  • Liaison with Legal and Accounting Teams
  • Due Diligence Management
  • Closing
 
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