BUYING

Buying A Business

Most Buyers Fit Into One Of Three Categories:

  • 1. Corporate Refugees

    Individuals Coming Out Of Corporate America Wanting To Consider A Career Pivot

  • 2. Serial entrepreneurs

    Individuals Looking For Either Their Next Business Or Another Business To Buy

  • 3. Strategic Buyers

    Companies looking to accelerate their growth through a strategic acquisition

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, How To Find It And Fund It. That Is Where Brentwood Growth Can Help. We Will Partner With You Through A Specific Process To Determine What Type Of Business Is The Best Fit, Find The Business, Help You Get It Financed And Closed. A True Partner From Start To Finish.

Process

Step 1 Criteria Profile

Criteria of each buyer will differ based on 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:

1. Experience and background assessment

What are you good at? Operations, client support, people management or sales. We want to be sure when looking at a business to buy you take advantage of the core competencies that are your strengths and leverage off those. The business will be successful if you are successful.

2. B2B or B2C assessment

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 need to rely on marketing, advertising and SEO optimization for revenue growth and a B2C business makes the most sense. In order for the business to be successful and grow revenue and clients need to grow, we will ensure we are starting at the right place.

3. Geographical preference or virtual

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 there, others are looking for this as a chance to move, others still do not want to be tied to a specific area but want the freedom work from anywhere. We will be sure we look at this.

4. Investment capital available and financing capability

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? 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 a SBA can greatly expediate the process.

5. ROI expectation – cash flow and potential sale value

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 in value should you want to sell it 5-10 years out? We look at these factors to be sure the business meets your financial expectations.

6. Industry segments

Clients are surprised we have this 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 subjectively to it. We have look at segments based upon answers to the other categories.

Step 2

Financing Capability

Brentwood Growth will assist you in determining financing required to acquire targeted companies and the steps necessary to obtain it; we will assist with preparation of required and supporting financial information. This will include SBA express and 7(a) loans.

Step 3

Finding Target Companies That Fit The Profile

Develop a balanced marketing process to identify target companies, Vet and qualify potential seller, assist in the negotiation of Letters of Intent

Step 4

Assist With Due Diligence

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

Step 5

Assist With The Transaction Documents

Consult with you, as needed, regarding review of definitive transaction agreements. Ensure that the Seller reps and warranties are reasonable and represent “market”.

Step 6

Transition To Ownership And Operation

Consult with you, as needed, to identify appropriate steps regarding the operational transition of key customers, employees, suppliers or other key relationships.

INDUSTRY CHECKLIST

BUSINESS TO BUSINESS (B2B)

  • Accounting and bookkeeping
  • Brokers – Business, Commercial Loan and Franchise
  • IT Managed Service and cybersecurity support
  • Medical Billing and Receivable Management
  • Green Company - Energy audits, Solar energy,sanitization and disinfection (COVID)
  • Logistics, Distribution and Shipping Services
  • Marketing, Digital Marketing and SEO Optimization
  • Real Estate Services- Commercial Cleaning,Landscaping, Property Management
  • Security – Commercial, Education and Retail
  • Staffing – Business, Medical and Virtual staffing,Outsourcing, Automation

BUSINESS TO CONSUMER (B2C)

  • Automotive, Car Repairs, Body Shop and Paint
  • Dry Cleaning and Laundry
  • Home Improvement Services – Painting, Kitchen, Bathrooms, Roofing, Closet and Garage
  • Home Maintenance Services – Cleaning, landscaping, swimming pool, mosquito and pest control, HVAC, electrical and plumbing
  • Pet Care – Grooming, Dog Walking, Dog Sitting, Home Training and Supplies
  • Real Estate Investing
  • Real Estate Services – Property Management, Home Inspections
  • Restoration and Repair – Water and Fire Remediation
  • Senior Care – Non-medical, In-home
  • Trash and Junk Removal, Storage
  • Tutoring and Educational Services