Business Acquisitions & Exits Advisory
Our Team Will Help You Maximize The Value of Your Business
Sperry Commercial Global Affiliates is a network of commercial real estate affiliates dedicated to delivering strategic and targeted solutions to clients around the globe. SperryCGA believes that the commercial real estate industry is an ever evolving, ever changing market sector. To achieve the highest level of success for our Clients, we must be able to efficiently manage their diverse and complex needs.
Documentation
Buyers will want to see historical numbers for the last 3-5 years, along with projections for the next 3-5 years Using proven and accepted accounting methods, SCGA can help organize your financial documents to ensure the maximum selling price for your business.
Know your Business’s Value
When we have your historical data, we will be able to determine your business’s earnings multiples. Our exits advisors will identify your multiple, as it can vary quite a bit. The harder it is to get into the industry, the difficultly of replicating your business, customers with repeat sales, and other factors can increase your multiple.
Find the Right Buyer
Our advisors will research investors who have made purchases of similar businesses, and utilize our national database of affiliates to market to individuals and companies looking to break into a new industry . These active buyers are often looking for other companies to “add on” to their current interests or find new revenue streams. At SCGA our mission is to find the right buyer for your company.
Transactions
Through our global network, we have countless resources to gather information on how companies in your industry are being valued and why they are being acquired. Researching these past transactions will give us a better idea of your company’s value, and comparable sales to show potential buyers.
Timing of the Sale
Business owners that are selling during a time of soaring profits are likely to see more value than owners looking to sell due to economic downfalls. Sometimes, this cannot be helped. However, if you are in the “consideration” phase of selling your business, reflect on selling during high profits rather than waiting for a downward turn. It is important to start executing your exit strategy in advance. Sellers that wait until they are “wanting “ or needing to sell are at a great disadvantage compared to a seller that can take the time to find the right buyer at the optimum price.
The Business Acquisitions & Exits Team
Mark Griffin, CCIM, CM&AA, and John Kawalchuk, S7, lead our expert Business Acquisitions & Exits Team. They have sold and advised countless businesses to maximize value.
Seller Resources
Seller Beware! The One Question You Must Ask Your Broker.
Selling your business can be one of the more difficult things you do in life. During the exit process you can count on making several hard decisions; emotionally, financially, and logistically. One major decision will be choosing the right broker to prepare, market, find a buyer, and assist you through the transfer of a business you have no doubt poured your blood and tears into creating.
To Finance or Not To Finance
One of the most common scenarios in a business transfer is for the seller to offer the buyer some kind of financing option. Whether it’s term financing or a seller earnout, offering a buyer the ability to acquire your business at an amount that might otherwise present a barrier to entry is a powerful tool in your exit strategy. Both options allow the buyer to enter the business with more liquidity to add value or adapt the model to their vision, and it gives them peace of mind knowing that the seller has confidence the business will perform as advertised. When you decide it’s time to start thinking about an exit, keeping these strategies in mind can be a vital part of a successful disposition. But which one is right for you?
Benefits of the Sale Leaseback
A sale leaseback is by no means a new type of investment in commercial real estate, but rather one that has arguably been under-utilized during the last 10 years, largely because of consistent economic growth. When business is doing well and revenue continues to increase, a major investment most small to midsize businesses desire to make is to purchase the building or land that they currently lease, or to purchase a new, larger space.