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Underlying
all of the services we offer, is the advantage of networking with affiliated
professionals throughout the United States. For
our clients, the chief benefit of our network is a successful transaction
close rate two and a half times the industry average! It simply
makes sense to work with an advisor who has access to literally thousands
of
active buyers, rather than just one local broker working to sell your
business to only their local list of possible buyers.
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Transaction
Advisory Services
The process
of selling a business requires professional attention. Typically business
owners have never sold a business before,
may be ill-equipped
to determine whether the business is ready for sale, lack the training
or objectivity to determine the actual fair market value of their
business, and have neither the time nor expertise in confidentially marketing
their business to prospective buyers.
At Madison  Cabe
Group, our sole purpose is to bring qualified buyers to sellers of
successful businesses, in a strictly confidential
environment. We will conduct an extensive review of a business
in order to prepare
a
professional Market Valuation Analysis that will aid in establishing
an asking price. We then prepare a detailed Confidential Memorandum,
typically
25 to 60 pages in length that will demonstrate the true economic
performance of the business, highlighting both the tangible and
intangible assets
included in the sale. An indispensable tool in marketing a business,
this Confidential
Memorandum sets the standard in our industry for professionally presenting
a business to prospective buyers.
A Confidential Memorandum is never released to a prospective buyer
unless they have been pre-qualified and have signed a strict Buyer
Confidentiality
and Warranty Agreement.
We develop and execute a tailored Business Marketing Plan, leveraging
our national affiliations, and then schedule a meeting between the
business owner and the interested buyers, giving both parties the
opportunity
to
exchange information about each other. We then work to obtain a written
Offer to Purchase that, upon acceptance, paves the way for the due
diligence process that will lead to closing.
Business Valuations
Nothing impacts the ability to successfully sell a business more than
correctly valuing the company. At Madison Cabe
Group we strongly recommend our clients obtain a third-party appraisal
for all but the smallest
of companies. The investment in a
third party appraisal is typically a fraction of a percent of the ultimate
selling price, yet it will have an enormous impact in generating interest,
credibility and validity in the eyes of buyers... the result is successfully
maximizing the sales price. Independent third party appraisals will
pay for themselves!
We can also arrange for business valuations when not in connection with
the sale of a business including:
- Obtaining
financing, SBA loans, Bank loans
- Corporate
or partnership dissolutions
- Buy-Sell
Agreements
- Divorce
- Gift
and Estate Planning
- Mergers
and Acquisitions
- Adequacy
of Life Insurance Coverage
- Incentive
stock options/ESOP's
- Eminent
Domain Actions
- Going
public, going private
Exit Strategy Planning
While a business owner may be ready to sell, their business may not be,
if realizing the business' true fair market value is the objective.
For closely-held and family-owned businesses this is typically because
the companies have been managed to minimize income taxes, not to maximize
fair market value. This is why it is extremely important to prepare
an Exit Strategy well in advance.
We work closely with business owners in determining the true economic
performance of their business and value the company on these metrics.
However, there are times when validating true economic performance is
difficult, perhaps due to the lack of records. In such cases it is usually
advantageous to manage the business to maximize net income (vs. minimizing
taxes) for a year or more before listing your company for sale.
Retained Search for Targeted Acquisitions
While at Madison Cabe
Group we typically search for qualified buyers for our business-owner
clients,
there are times that we will conduct a targeted
search for acquisitions on a retained basis for buyers as clients. Please
contact us for more details.
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