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WHY SHOULD I CONTACT MERLE MAKINGS? Merle sells businesses for a living; he understands the market and the quickest path to achieving a closed transaction. SO YOU CAN STAY FOCUSED ON RUNNING YOUR BUSINESS – This is important so your business stays profitable and marketable. Having a third party involved allows you to keep an arm’s length in the negotiations. HOW DOES MERLE MARKET AND ADVERTISE? Designing a marketing plan specifically targeted to the types of buyer that would be interested in the business is a key factor. Merle uses a database of buyer prospects, professional associations, and investment groups. He employs target marketing through trade publications, direct mail, and internet sites specifically for business transactions to reach buyers. He customizes his approach based on the needs, desires, and objectives of the client. HOW DOES MERLE QUALIFY BUYERS? Merle requests and reviews the financial capacity of all buyers. This includes their current capability and past transaction history. He will focus on those prospects who are proven to be financially qualified and who are genuinely interested in the business and capable of operating it successfully. HOW DOES MERLE PRESENT THE BUSINESS? Merle is experienced in packaging, marketing and handling negotiations. He prepares a marketing report that includes all of the relevant information a buyer would be interested in. This information is provided to a buyer after signing a NDA and passing a buyer qualification. The report provides a potential buyer approximately 80% of information they would normally need to acquire during the due diligence period. This helps to avoid wasting time asking redundant questions and quickly get to qualified, interested buyers. HOW DOES MERLE MAINTAIN IN PRIVACY AND CONFIDENTIALITY? Business owners are extremely concerned about confidentiality. Merle is experienced and skilled at protecting the confidentiality from the employees, suppliers, creditors, customers of the business, and most importantly, the competition. HOW DOES MERLE NEGOTIATE THE BUSINESS SALE TRANSACTION? He will be vital advisers during the sale transaction. Knowledgeable about negotiating price, terms, and other key aspects of the sale, Merle will guide the seller each step of the way. Proper deal structure will greatly affect the net amount that the seller will end up keeping after selling the business. His goal is to help clients achieve their objectives. HOW MUCH IS MY BUSINESS WORTH? The value of your company depends on many factors such as: cash flow, asset values, financial history, condition of equipment, and the status of the location of the business. Is the building and land owned or leased? Are there favorable lease terms? What is the competition, location and the economy? As you can see analyzing your business and industry is imperative. Merle can advise you on the proper pricing strategy for your business based on all of these factors. WHY NOT SELL MY BUSINESS MYSELF? It is extremely difficult to maintain your business while engaging in the selling process. Most owners do not know the time and expense involved in marketing their own business. They will often spend wasted hours working with unqualified buyers. In fact, because the business owner does not have access to a network of qualified buyers, they often end up selling their businesses for much less than they could have. It is also very hard to maintain confidentiality as well as negotiate a deal if the business owner is working directly with the buyer. WHEN IS THE BEST TIME TO SELL? The best time to sell is at the businesses peak. Buyers put most of their focus on the future prospects, if your business has been a steady performer and they can see growth potential, the higher the purchase price. WHAT DO I GET WHEN USING MERLE? • Maximum Exposure • Confidentiality • Qualified Buyers • Advertising and Marketing • Financial Guidance • Negotiating Power • Experience • Proven Results WHAT ITEMS DO I NEED TO PREPARE IN ORDER TO SELL MY BUSINESS? • Three Years of Tax Returns • Current P&L and Balance Sheet • Current Asset List with replacement value • Real Estate Appraisal or Copy of Facilities Lease Agreement • Organizational chart WHEN SHOULD I DEVELOP AN EXIT STRATEGY? The ideal time to develop an Exit Strategy for your business is when you start or purchase the business. However, industry statistics indicate that 85% of all business owners do not have a defined exit strategy although, on average 75% of their net worth is tied up in their business. IS MY COMPANY READY FOR SALE? The company’s financial records and operations must be evaluated and analyzed to determine the strengths and weaknesses of the company. Proper planning will help you address and hopefully minimize any operational or financial weaknesses of the company before launching the marketing phase of the disposition process. WHAT IS MY COMPANY WORTH? The market price range of your company is estimated after consulting with you and reviewing your company information and financials. Timing considerations, proposed transaction structure, industry conditions and lending market conditions are all key elements to consider in estimating the market price range for your company. Ultimately only the marketplace will determine the true value of your company. Merle has access to the most recent and relevant information available regarding market values in the industry. HOW LONG WILL IT TAKE TO SELL MY COMPANY? The industry average for selling a business is 6-12 months. The size of the transaction, the pricing structure, and specific marketing strategy will directly affect how long it will take to sell your company. HOW DO I MAINTAIN CONFIDENTIALITY IN THE MARKETING PROCESS? Confidentiality in dealing with internal personnel and external sources is strongly encouraged and is critical to achieve a successful transaction. For the Seller’s protection, Merle requires a Buyer’s Confidentiality Agreement and buyer qualification form to be completed and signed by potential buyers before the release of any company information. HOW DO I PREPARE TO BUY A COMPANY? Merle will assist you in determining your acquisition goals and objectives if they haven’t already been determined. Before the acquisition search begins, it is important to narrowly define and target a specific industry, business size, develop an integration plan if applicable, understand your financial purchasing parameters and explore your financing options. WILL MERLE MAKINGS HELP ME ARRANGE FOR FINANCING? Yes, Merle assists Buyers in obtaining transaction financing through his financial institution contacts. DOES MERLE MAKINGS ASSIST IN STRATEGIC ACQUISITIONS? Yes, Merle will formulate with you a definitive acquisition plan to target both single and multiple strategic acquisition candidates. If you prefer, Merle will help you remain anonymous and maintain confidentiality until the appropriate time in the transaction. WHAT ARE MORE IMPORANT, BUSINESS EARNINGS OR BUSINESS ASSETS? It is true that earnings must support the purchase of business assets. It is also true that assets must be available to serve as financial or even “psychological” collateral. A common finding is that the mix of assets and earnings will vary considerably among businesses. This mix is then judged accordingly for that particular business. WHAT ARE THE TOP REASONS BUSINESS DON’T SELL? • Priced too high. No justification for the price. • Business cannot be financed. Poor record keeping (tax returns). • Not packaged correctly. Need to explain full value of the company in writing. Buyers want to leverage their money. • Desirability (owners responsibility and hours required to operate successfully). • Management and employee not staying after the sale (family owned). • Out dated service and/or product (i.e., payphone business). • Too much working capital required. • Business is totally dependent on the current owner. SOME ADDITIONAL POINTS TO CONSIDER: Deal Structure and Financing • Is owner financing a consideration? • Does this company have the potential for SBA approved financing? • Sales and Earnings? • Are revenues going up, down, or flat? • What are the trends in expenses and margins? • Familiarization plan by current owner? Company History • Is this company a startup or is there a long, steady history? • Is there an opportunity to improve sales through a more aggressive marketing campaign? • Industry Trends – How are revenues trending in the industry as a whole? • Is there a consolidation movement within this industry? • Employees – Is there a stable workforce? Do the employees know the business is for sale? • Is the owner willing to stay on as an employee? • Facilities Is there a long-term lease? • Is real estate included in the deal? Assets and Liabilities • Exactly what assets and liabilities are to be transferred with the sale of the company? • Does it make sense to include accounts receivable and accounts payable? • Are there some assets or liabilities that it makes sense to exclude? WHAT IS CASPER BUSINESS SALES? Casper Business Sales is owned by Earl Cass of Casper Realty LLC. Merle chooses to “hang” his license with Casper Business Sales and conduct all transactions via Casper Business Sales. Earl Cass is a long time valley business broker and real estate professional. Earl currently spends the majority of his time teaching business brokerage classes for the Arizona School of Real Estate.