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FAQ

What does a merger and acquisition specialist do? Can't I sell my business on my own?

The best thing a business owner can do to optimize results is to focus on running the operations of the business. We help you:

  • Expertly market your business in a highly confidential manner
  • Attract the best possible price for your company because of our ability to locate more than one qualified buyer and because of our years of experience negotiating and structuring successful transactions.
  • Structure a deal that allows you to receive the maximum after-tax benefit.
  • Coordinate your team of tax advisors, accountants, attorneys, etc., to ensure that the transaction is done in your best interest
  • Negotiate and close a successful transaction. It is best to have an experienced professional help you negotiate. You will put yourself at a severe disadvantage if you attempt to negotiate on your own against experienced acquirers and/or experienced M & A professionals representing acquirers.
How do I find out what my company is worth?

We provide you with a valuation of your company. Our years of experience, valuation methods, and review of comparable sales of privately held companies will provide you with a valuation indicating what your company could sell for in today's market.

How does BTI Group find buyers?

Our buyer search is tailored to each company. First, we develop a marketing strategy and campaign for your business. Next, we utilize several databases including buyers who have approached us in the past and are now part of our qualified buyers database as well as external databases of nationally and internationally based companies. We also network with other intermediaries and buyers through various organizations. Strategic buyers are typically targeted and approached by direct mail or telephone. Discreet marketing may also include newspaper advertising, trade publication advertising, and ads placed on high traffic M&A websites.

I want to keep the sale of my business confidential. I don't want my employees, customers and vendors to know that my business is for sale. What steps do you take to ensure confidentiality?

Most sellers share your concern. Our procedures are designed to protect confidentiality. First, all interested buyers must sign confidentiality agreements and must be financially qualified before any detailed information is disclosed about your company, including its identity. All external advertisements for your business are written in a discreet format providing a general description that does not contain enough information to allow someone to determine that it is your company that is for sale. All materials, descriptions, financial statements, and marketing materials are pre-approved by you.

Do I need a lawyer and/or an accountant?

Merger and acquisition specialists from BTI Group do not take the place of a lawyer or accountant. You are encouraged to seek legal and tax advisory services prior to closing any business transaction. We highly recommend that the attorneys and CPAs you use for the sale or purchase of a business be well experienced in M&A transactions. Over the years, we have worked with many qualified professionals in this area; we can refer you to them as needed.

How long is the exclusive marketing agreement?

The initial term of an Exclusive Marketing Agreement is 12 months.

What is expected from a seller in order for BTI Group to conduct a valuation and to start marketing a business?
  • 3 years income tax returns, income statements, and balance sheets.
  • Current list of equipment, fixtures, and inventory.
  • A copy of your lease with details such as square footage, space availability, rent expense, terms, options, etc.
  • Information about property or real estate owned or used by the business.
  • Breakdown of employees with titles, salaries and a short biography for each member of the management team.
  • Photographs of facility, equipment, and location, etc.
  • Legal documentation for any patents, intellectual property, etc.
  • Marketing materials such as copies of advertisements, magazines, articles, Yellow Pages ads, newspaper articles, etc.
  • Other documentation specific to your business.
  • We will provide you with a list.
You will also need to participate in a thorough interview allowing us to learn about your business to effectively represent you and your company.

I want to buy a business (I am a strategic, financial, and/or individual entrepreneurial buyer.) How do I become a qualified buyer and get to review the businesses you have for sale?

First, contact us to introduce yourself. We then fax you the necessary forms such as a Confidentiality Agreement, Statement of Business Experience, and Statement of Financial Resources for you to complete. Once we have received the signed confidentiality agreement and additional data, we will contact you to discuss the business opportunities that best fit your profile.

Why must I sign a confidentiality agreement?

We are dedicated to servicing the confidentiality needs of our clients. Signing the confidentiality agreement is a painless process in which you promise not to disclose any information that we give you about a business, including the business name, owner information, etc. Breaches or leaks of confidential information can cause customers to move on, employees to quit, and vendors and lenders to get nervous. This can be detrimental to both the buyer and seller.

How does BTI Group get paid?

We are paid for success and therefore receive a transaction fee at the close of the transaction. In addition, small fees may be required to handle the cost of business valuation and the preparation of the Confidential Business Review. If you have been considering the sale of your business or looking for acquisitions that meet your investment criteria, please contact us to arrange a confidential consultation.


 
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