Strategic buyers generally know what they are looking for from the standpoint of additional products, services, clients, talent, or geographical coverage. Individuals looking for their first or next acquisition are different. They know why they want to buy a business, but not what type of business, nor how to find or fund it. This is where Brentwood Growth can help. We will partner with you, and through a specific process determine what type of business is the best fit. We then will find the business for you, and help you get it financed and closed. We are a true partner from start to finish.
The criteria of each buyer will differ based upon skills, experiences, time horizon, geography, financial capacity, lifestyle, and alternatives or opportunity costs. We will assist you to determine a profile of your target company. There are six areas we will gather information on:
What are you good at? Operations, client support, people management, or sales? We want to be sure when looking at a business for you to buy that you take advantage of the core competencies of your strengths and leverage off of these. The business will be successful if you are successful.
How comfortable are you in direct sales or managing a sales team? If yes, then you should consider a B2B business, if no, then you'll need to rely on marketing, advertising, and SEO optimization for revenue growth and a B2C business makes the most sense for you. In order for the business to be successful and grow, its revenue and client base will need to grow, and so it's essential we ensure that you start at the right place.
Where do you want the business to be located, or do you want the business to be virtual? Some people love where they live and want to stay put, others are looking for this as a chance to relocate. And there are those who do not want to be tied to any specific area and want the freedom work from anywhere. We will be certain to take this under consideration.
How much cash do you have available from all sources (including retirement funds); what can you borrow from the SBA and other sources; and what will the business support from a debt service repayment standpoint be? All of these questions need to be answered to determine what size business you can buy. Knowing this on the front-end and even getting pre-qualified for an SBA loan can greatly expedite the process.
What do you need to make from the business year 1, year 2, and year 3? And what do you want the ultimate value of the business to grow to should you want to sell it 5-10 years out? We look at these factors to be sure the business meets your financial expectations.
Clients are surprised that we've listed this criteria last, most want to start here. There are so many types of businesses available that until the other five questions are answered, it is impossible to make the right decision. You want the actual segment analysis to have an element of objectivity and subjectivity to it. We have to look at segments based upon answers to the other categories.
Brentwood Growth will assist you in determining financing required to acquire targeted companies and the steps necessary to obtain them; we will assist with preparation of required and supporting financial information. This will include SBA express and 7(a) loans.
Develop a balanced marketing process to identify target companies, vet and qualify potential sellers, assist in the negotiation of Letters of Intent.
Work with you to identify critical diligence areas and steps to accomplish; identify key employee or customer relationships; consult with you in review of diligence information and any potential purchase price adjustment items; coordinate with seller during the process to drive timely execution.
Consult with you, as needed, regarding review of definitive transaction agreements. Ensure that the seller reps and warranties are reasonable and represent 'market'.
Consult with you, as needed, to identify appropriate steps regarding the operational transition of key customers, employees, suppliers or other key relationships.