KEY ASPECTS OF THE BUSINESS SALE PROCESS:
A wide array of options are available when structuring a business sale. J.O. Read works with you to understand your transaction requirements and goals. This includes: Exit options that will satisfy your strategic goals/financial needs; valuation expectations; transaction roadblocks; timing of sale; anticipated tax consequences, desire for future involvement with the company or equity retention.
Packaging / Presentation of Company
A professionally packaged and presented business increases a buyer’s confidence and appreciation for the business. A business owner spends years establishing name recognition, market niche, vendor relationships, operation & production systems, management, personnel, distribution channels, customer loyalty and numerous other intangibles. We will tell the unique story of your business to help maximize its perceived value.
J.O. Read takes pride in our ability to create a Confidential Informational Memorandum (CIM) to present an in-depth review of a company’s competitive advantages and expansion opportunities to validate and defend the future earnings potential of the business, thus maximizing its attractiveness and perceived value. All materials are redacted to protect confidentiality.
Our philosophy is that fair market value is the minimum value that should be targeted in a sale. By identifying multiple strategic buyers that can realize synergistic benefits, we often achieve a transaction that exceeds this value. J.O. Read analyzes a company's strengths, tangible and intangible assets, financial performance, and expansion opportunities and utilizes proprietary databases to analyze purchase price comparisons of similar companies.
MEASURABLE SALES STRATEGIES
J.O. Read utilizes our extensive network of strategic, private equity, and financial buyers that are looking to grow through acquisition. We utilize proprietary and other licensed databases, in addition to numerous other resources, to create a highly targeted list of potential acquirers.
J.O. Read pre-qualifies potential buyers to gauge their interest level and ascertain their financial capability to close a transaction. This ensures that interested acquirers have been thoroughly vetted to prevent wasted effort and protect confidentiality.
Proper interpretation and presentation of financial information is a crucial step in maximizing value during the selling process. Financial statements are typically prepared for tax not business sale purposes, and generally do not reflect a company’s true profitability and potential earnings capacity. Acquirers must be able to “read between the lines” of the financial statements and tax returns to appreciate the cash flow being generated for the owner(s). It is crucial to properly present true “re-cast earnings” to maximize the value of a company.
Sellers are more likely to achieve a substantially better financial package when negotiating through a qualified intermediary. During this phase we will typically be negotiating with multiple parties thereby increasing your options and negotiating leverage. Our involvement allows you to continue to focus on running your business while remaining at arm’s length during the negotiation process.
We’ve serviced clients in these categories:
Construction Remodeling* Vehicle Logistics * Retail * Health Care Insurers * Small Restaurant Chains * Service Companies * Distillers * Telecommunications * Manufacturers