ASE Weekly Take Off 10
A Hands-Off Approach To Selling Your Business — Without Risking The 80% Chance Of Not Selling With A Broker
Have you considered selling your business?
If yes, you’ve probably shopped around for investment bankers or business brokers.
Business brokers are for smaller deals, and investment bankers are for larger deals.
Investment bankers do a great job, but your deal is probably too small for them as they won’t touch deals under $20M.
And our experience with business brokers is that they don’t have the network or take the affirmative action we take.
Business brokers have a reputation in the business community for not being able to sell 80% of their listings.
Check out this Forbes article if you don’t believe us:
https://www.forbes.com/sites/richardparker/2016/10/24/the-business-for-sale-marketplace-why-90-of-listings-never-sell/?sh=1f47a1b216d8
So, we would say there’s this hole in the market because investment bankers typically want larger deals and charge significant fees.
We are betting on ourselves because we know what we’re doing. So you don’t have to pay us a huge fee like $25k a month, which is not uncommon for those investment bankers to do your deal, plus expenses for our private plane to fly around and do dog and pony shows.
The M&A advisors at Acquire Scale & Exit (ASE) are entrepreneurs and investors with a network of a few thousand business buyers across many industries.
We have the same amount of capital sources to back up the buyer in case theirs a gap in their liquid capital (only as a value add), and on top of that, ASE has 220 ways of funding acquisitions.
All this means that ASE will work with both the seller and the buyer for a win-win deal where both sides give and take equally until mutually agreed upon terms are reached in a timely manner with as little involvement from the seller as possible.
Personally, within ASE, I specialize in IT services, SaaS, eCommerce, and Service Based companies.
Usually, when business owner decides that they want to sell, they look for a broker to help them. The broker will look at the going market rate and tell the seller what the highest possible valuation for their business is for the highest possible commission.
Then the broker will create a Confidential Business Memorandum (CIM) out of a template that really doesn’t cover all of the key points that a potential buyer is looking for or convey the main essence of your business.
If you’ve failed to sell with a broker before or know someone who has, you know how draining the exit process can be when not done right.
I mean, if you get into a car with only half a tank of gas, you can’t expect it to achieve its maximum range.
That’s why ASE leverages industry experts in creating all of its CIMs, data rooms, and packages before they are sent to experienced buyers that have already stated that they are looking for a business like yours and have the funds to back them up.
ASE is on a mission to fill the hole left by brokers and bankers to preserve the economy by preserving small and medium-sized businesses and the jobs they create.
And if your business doesn’t have a succession plan, the current economic climate is only going to cause more uncertainty.
Either exit now, ahead of the tsunami of a recession, or risk selling your business for a lower valuation after it’s gone to battle with a pandemic and recession!
We understand that selling your business can be daunting, that’s we provide complimentary business and financial analysis for anyone that needs it (under NDA) via our short due diligence checklist.
At ASE, we have a dedicated advisor who manages your deal’s workflow and coordinates with other industry experts to get a second opinion before lining up the buyer.
Ensuring that the most common pitfalls of M&A transactions are already pre-addressed.
If you’re companies, financials are healthy; we can quickly proceed with setting up your data room and collecting all the information from you that a buyer will need.
And if it’s ok with you, we can also go through our short due diligence checklist on a recorded zoom call that we can share with vetted buyers under NDA to save your time and energy.
On the other hand, if your company’s financials aren’t where they need to be, we have other options, like partnering with a strategic buyer that can leverage your business, earn-outs, etc.
Once we have both the buy-side and sell-side lined up, we’ll propose fair terms to both sides and quickly proceed to a mutually agreed upon letter of intent (LOI). An LOI is like a marriage proposal that commits both sides.
At that point, the buyer will pay for legal and financial due diligence, while the seller should have their attorney review the LOI and seek an independent tax advisor to avoid overpaying taxes.
Post due diligence, a purchase agreement will be presented from the buy-side to the sell-side, and viola, you just sold your business.
Remember that we put a man on the moon 53 years ago, so following those short 6 steps is a walk in the park, especially when you have advisors and buyers that have already gone through the process multiple times.
And if you’re deal meets our criteria, we might buy the company ourselves!
Taking action now is the only thing standing in your way between getting a cash offer for your business and having to close it down or being stuck in the grind!
Email us for your risk-free, complimentary analysis at:
edgar@acquirescaleandexit.com
And remember that securing your company’s succession plan isn’t just about you but about the jobs you create!
So you really only have 3 options:
1. Do absolutely nothing and struggle through another recession on your own.
2. List your company on BizBuySell and Deal Stream without any backup or support.
3. Or work with a group of professionals and experts in your industry to sell your business as quickly as possible and fund the next stage of your life!
I’m ready to send you that email with the subject line: The Funds Are Wired.
Only you can decide.
Here are a few companies for sale with no broker:
PROFITABLE REMODELING/ BUILD/DESIGN BUSINESS - CONTRACTORS DREAM! (BEND, OR)
18 y/o business with 50% repeat customers and $1 million in progress. The team that runs this company is made up of experienced, innovative designers and contractors who guide clients through the home...
Asking Price: $399,000
TTM Revenue: $1,057,996
AMAZON FBA MEN'S GROOMING, BEARD GROWTH BEARD CARE BIZ SET UP FOR UK, EU & US - 6 FIGURE BUSINESS!
Profitable eCommerce with $199,285 in TTM revenue and $39,661 in TTM Profit selling men's grooming products: beard growth and beard care. This company...
Asking Price: $235,000
TTM Revenue: $199,285
AN ALL-IN-ONE SCHEDULING & MANAGEMENT SOFTWARE FOR TUTORING CENTERS IN K12, COLLEGES, AND UNIVERSITIES.
Premier Student Information System (SIS) / Learning Management System (LMS) software for educational institutions which helps reduce dropout rate...
Asking Price: $300,000
TTM Revenue: $60,000
NANOTECHNOLOGY WELLNESS (CBD) FOR ANXIETY, AND SLEEP, WITH 64% REORDER RATE
Profitable eCommerce brand with $184,330 in TTM revenue and $65,000 in TTM profit selling water-soluble CBD with a mission to enhance overall mental health...
Asking Price: Was $255,000
Now: $150,000
TTM Revenue: $184,330
PUBLISHING BUSINESS WITH 3 MILLION JOB-SEEKING VISITORS PROJECTED IN 2022
This business will generate 2,970,000 visitors in 2022. Multiply $2.04 x 2,970,000 = $6,058,800
That’s the value of the traffic to this business for just one year! This business has mastered the art...
Asking Price: $790,000
Here is a hot eCommerce Buyer:
ASE has partners looking to invest in eCommerce companies that meet the following criteria:
$500k+ SDE/EBITDA (or Net Profit) last 12 months, YoY growth preferred.
3 Years of sales history or more on Shopify (or similar) and/or Amazon.
Branded, no drop shipping.
For Niches we are particularly interested in:
Mom, Kid, Baby, Home, Houseware, Kitchen, Pets, Toys, Games, Gifts, Outdoor, Sporting Goods, Beauty, Health, Garden, Personal Care, Wellness, Hobbies, Cookware, Fitness
Niches we avoid:
Electronics, Apparel, Supplements, Foods, Sin Niches, Medical, Fashion.
Don't have an eCommerce business but know someone who does?
We're offering generous referral bonuses on a pro-rata split.
Just make the introduction, and you will get a commission for basically no work if the deal closes - easy money in your pocket.
Send me a DM if you want more information or are interested in participating.
Let's close some deals!
Here is the best way to recession-proof your business:
The mistake made by 90% of business owners during inflationary periods is NOT raising prices!
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Yes, anyone can look at what the competition is charging and copy them.
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But not everyone is The Price Whisperer™ (Per Sjofors)!
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Per, has 700+ projects with PE firms, companies, and investors under his belt!!!!!!!
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Often leading to more than doubling of sales growth, 25%-40% higher margins, and a more than doubling of shareholder value, quickly in a matter of a few months.
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And I know what you're thinking, and no, this doesn't mean that you're business will be used as a drug front. While we hear that there are some profits, there's also some downside. Haha, sorry, Micheal Girdley recently used that line in a recent Acquisitions Anonymous Podcast!
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Joking aside, during a recession, all businesses are thrown into the arena, whether they want to or not!
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But luckily for you, it's not A.D. 70 anymore, and you don't have to be in the Colosseum by yourself!
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If you need help training your business to compete in the arena, let's get you in touch with the Per, ASAP!
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"It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better." - Theodore Roosevelt