WHY YOU SHOULD COME TO US TO SELL YOUR BUSINESS?
As counterintuitive as it may seem we have mainly sold businesses that were not in the market to sell. This is largely because we have close associations with and understand our major buyers and we have a watching brief for the right companies. A great company can command a great price. Sometimes, in the case of funds, we structure unique deals where the buyer puts in the money and finances the expansion of the business and the owner runs the business for some years and enjoys an additional risk free return in the form of an earn out. Most multi-nationals look for an outright purchase. The seller’s objectives play a big part in the matching process.
We know what our buyers pay money for and what they do not. There are many subtleties, which if ignored will eat away millions from your selling price. Here are just a few examples; International companies typically have policies and conventions that compel them to pay a minimum wage typically far in excess of that which local companies may be paying. If you have 500 staff members and you are paying them R2000 short of the international company minimum figure then that is R1 million off your price.
If you sell on the wrong day when your overdraft is R10 million higher than at the end of the month then that is R10 million off of your price.
Know that every R20 000 per month you gain or lose is worth at least R1 million in your pocket when you sell. Yes that is every twenty thousand rands.
If you can establish a credible growth trajectory then we can sell your business on the future growth and profitability projections, often without warranties. If you have a fifty year old business the last two years can be a more important factor in determining the selling price than your previous 48 years of sweat.
A clear business model is most important as is focus on a specific industry. Multi-national companies are looking for focused businesses with high market shares. Here we can provide valuable assistance.
Call me now on 083 6754040 and I will check with one or two satisfied customers in your industry and mail their details to you so that you can talk to them and get a feel for the positives and also the challenges associated with such a life changing exit journey to the achievement of your highest ambitions .