For an owner, selling a business is a significant decision. Most owners sell their business because of lifestyle reasons - retirement, family, health, a new chapter. However:
Of Business Owners Do Not Know The Value of Their Business
Of Business Owners Do Not Manage Their Business To Value
Of Business Owners’ Net Worth Is In Their Business
We respect what you have accomplished because we've been there too. We team up with you through the entire process and at your pace. Be comfortable and ready to exit the business on your terms.
Brentwood Growth will look at each of the following three groups with you to get the maximum exposure, visibility and value.
Each group has characteristics and objectives that are unique with pros/cons.
Reliance on founder
Management team in place
Size – typically based on EBITDA
Reliance on founder
Partner or Vendor relationships
Customer concentrations (>10% to 20%)
Size typically based on EBITDA
Reliance on founder and management in place
Increase existing market share from existing or complementary products or services
New markets, customers or geographical footprint
New technologies, capabilities or IP
Part of a roll-up strategy
Could operate as stand-alone or consolidate into existing operations
If you have additional questions please just contact us. We would like the honor to speak with you today!
Generally, it takes about six months from the time a business is listed to the closing of the transaction.
Your business should be listed for a realistic price that is close to what it will sell for, but at the same time, leave some room for negotiating. When determining the price, Brentwood Growth uses a combination of an EBITDA appropriate industry multiple.
The sales process consists of listing the business, locating a buyer, negotiating the terms of the sale, executing a letter of intent, undertaking due diligence, and closing. Some of these tasks are the responsibility of the attorneys and CPAs that represent the sellers and buyers.
You have no obligation to tell the truth concerning the actual financial and market status of the business. After a buyer is found, you will most likely have to maintain and operate business as you normally would between the time a contract is signed and the closing. We recommend that you have an attorney advise you or specific responsibilities and obligations.
Usually, the prior owner is required to stay on as an employee for a reasonable period to train the new owner and to introduce him or her to the customers, employees, and suppliers. Prior owners are compensated as an employee. Depending upon the circumstances and your level of interest in staying on, your time commitment could range from as little as a few weeks to several years.