Selling Smart
The Problem
This is often an overused statement, but our 40 years of experience constantly shows us that too many sellers never really market their business.
They are approached by a potential buyer who then isolates them from the market.
End Result: The seller never really knows what his business is worth in the open market.
THE “SMART” APPROACH
The key is to make sure that the entire universe of appropriate buyers are given the opportunity to buy the business.
End Result: Top price and terms in a competitive market.
You might ask: What is EBITDA?
Is EBITDA JUST Earning before Interest, Taxes, Depreciation, and Interest?
TRUE! However, two elements go into determining the REAL SMART EBITDA.
1. DEEP DIVE WITH BUSINESS OWNER. We explore every potential area that private business owners might be using to reduce taxes that in fact would add to the EBITDA if not include in the calculation. You have to be counterintuitive by asking yourself “what should the EBITDA be” if I want to maximize EBITDA BY MAXIMIZING TAXES.
2. Even the best advisors who are skilled at MAXIMIZING EBITDA with proper data from the business owner very rarely look at bringing specialized advisors in that can find creative ways to reduce top line expenses.
We bring specialists to COLLABORATE with us to negotiate with vendors and suppliers to bring down TOP LINE EXPENSES, such as:
Utilities
Internet
Technology
Maintenance
Uniform Expenses as well as
Health, Property & Casualty Insurances
Venture Capital/Private EquityMost buyers often allow for these additional add backs to be credited as legitimate savings when documented which increases EBITDA. This can make a dramatic difference to the ultimate sales price.
Our Proven Process
Your dreams come first. That’s why we do everything we can to best support you throughout every facet of your transition. It begins with understanding where you are now and where you want to go; then we seek to offer advantageous options through three key steps.
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step 1
Plan
AMG research capabilities provide the most current marketing data giving you an up-to-date and accurate valuation. Additionally, the planning process is focused on specific areas that all revolve around our client's “exit strategy.” The level of sophistication depends upon our client’s objectives. A written plan is provided to each client. Initial areas that may be covered include.
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step 2
Sell
We connect with our preferred network of buyers while scouring the nation for proven and/or top-level potential buyers within your industry. We then further vet their goals and timetable to make sure it aligns with your goals and schedule. Finally, we prepare the transition and transaction, making sure every step of the process is clear and communicated.
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step 3
Transition
Once you transition from business owner to large portfolio investor, we seamlessly switch our focus into financial planning advisory services that set a holistic plan in motion; making sure your goals for today align with your vision for tomorrow and for decades to come.