The following is a summary of the most common questions we receive from business owners and prospective business buyers. Please feel free to contact us to discuss any other initial questions you may have about the process of either acquiring or selling a middle market business. We will be delighted to help you!
For Business Owners And Sellers
1. How do I determine what my business is worth?
We will discuss this issue at the outset and you can determine if you would like to either retain us or another independent firm to prepare a formal business valuation. Ultimately, however, most middle market companies are not sold with a set asking price. Prospective buyers are typically asked to submit bids or indications of interest with ranges of value based upon their projected values of the business and imputed returns on their investments.
2. What is the sales process?
We have a structured sales process which includes preparing your business, developing an offering memorandum and other documents, researching, contacting prospective buyers and exchanging information with prospective buyers, structuring and negotiating the transaction, the buyers performance of due diligence and the closing. We will work closely with you, your legal counsel and CPA throughout the entire process.
3. How long should I expect it to take to sell my business?
The amount of time required to sell middle market businesses varies greatly, but generally speaking, 9 to 12 months would be considered a normal time period. Factors that can directly impact the time required to sell a business include, but are not limited to, the operational and financial performance of the business, the price expectations of the seller, credit market conditions and other general economic conditions.
4. Are you currently working with any buyers looking to buy a business like mine?
One of our affiliates, Sunbelt Business Brokers, is the world's largest business brokerage firm, selling 3,000 businesses annually. In conjunction with the operation of that business, we work with thousands of prospective buyers. Additionally, we will research the market for private equity groups and other strategic buyers who may have an interest in acquiring your business.
5. Will the sale of my business be kept confidential?
Confidentiality is a primary concern for most if not all of our clients. We are accustomed to conducting our work in a highly confidential manner.
For Business Buyers
1. What services can SBBCP provide?
We can serve as your representative in “buy-side” engagements conducting market research, contacting prospective target acquisitions, meeting with prospective targets, assisting with preliminary due diligence, etc. Please contact us for more details.
2. Can you assist me with national and international business searches?
Yes. Through our affiliate Sunbelt Business Brokers*, we have access to a standard internet based management system and data base which enables SBB Capital Partners and Sunbelt brokers and business intermediaries, through the world, (more than 1,000 people) to seamlessly correspond and communicate on a daily basis.
3. Can SBBCP assist me with implementing a “roll-up” strategy?
Yes, “roll-up” acquisitions are a big part of any middle market investment banking business. The majority of private equity groups and strategic corporate investors who we work with are actively involved in roll-ups.
4. Does SBBCP assist management teams interested in pursuing leveraged buy-outs of their company?
Yes, we are is delighted to work on MBO and LBO transactions. We have extensive experience with these transactions.