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3171 Green Valley Rd
Suite 431
Birmingham, AL 35243
P: (205) 967-3874 F: (205) 278-8560
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Few events in life are more emotional or financially significant than selling a business that has been carefully developed by a business owner. A business owner who has grown and developed his business over a number of years will find it difficult to remain emotionally calm during the marketing and sales process of his entity. An experienced intermediary has the tools to guide all of the parties through this emotionally charged time.
Hallmark Business Group has the ability to counsel with business owners to determine the optimum time to sell a business. The best price is usually achieved when the business is doing its best, not when health or financial conditions force an unplanned transaction. The seller's goal is discussed to insure that the intermediary and business owner are working in unison to achieve maximum financial benefit. An honest evaluation of the business and its assets may not initially match the seller's goal, but we commit to an honest evaluation of what the sale might reasonably net for the seller.
Hallmark Business Group offers to Sellers:
Confidentiality in marketing - all business owners are concerned about the peaceful continuation of their business during the selling process. All marketing materials, both printed and electronic, are written in a generic nature to protect the identity of the seller. Potential buyers are screened, interviewed, and pre-qualified to insure that their intent is truly serious and that they are committed to purchasing a business. These buyer candidates are then required to sign a Confidentiality Agreement before being allowed to review information about the business.
"Real" market business valuations - Prior to signing the engagement agreement, a business valuation is made of each business to insure that the marketing price is realistic. Based on the last three (3) years of financial performance of the company, which is evidenced by filed tax returns, the business owner has the upfront knowledge of what he may reasonably expect to receive in net proceeds from the completed sales transaction. An interview process and industry analysis is completed to insure that the intermediary has an understanding of the industry and business specifics.
Marketing - Whether the buyers are drawn from our proprietary database or market industry sources, a specific plan is developed for each engagement to confidentially draw in a group of qualified buyers. Effective marketing materials not only produce the largest pool of buyers but also assist in minimizing the time commitment of the seller. The formation of these marketing materials will require a contribution of time from the seller initially but then a well-written array of marketing materials can be used repetitively with minimal required input from the seller.
Negotiations Process - During the process of selling a business of any size, many complex issues will be encountered that may each have a material financial impact on the success of the transaction. Sellers will find it difficult to remain neutral during this emotionally charged period of time. The experienced intermediary will add value and smoothness to the process by helping the seller understand the events to come. Most sellers will be undertaking the task of selling their business for the first time and an intermediary will add substantial value to the process by explaining events as they unfold.
Coordination of related professionals - The "team" approach to structuring the transaction for the benefit of the Seller is important. Hallmark Business Group will quarterback the negotiation and closing process, by including the financial and legal counselors of the Seller. An experienced intermediary will have the expertise to suggest a wide variety of strategies to result in the maximum benefit to the Seller.
The Process of Selling your Business
Just like sound financial business planning leads to more sales and profits, a clear understanding of the selling process will also lead to quicker and better results.
Initial Meeting - To accurately market a business for sale, many details and facts must be readily available. An initial meeting with You, the Seller, allows for an exchange of information to determine your objectives and goals in the sale. This discussion will include the marketing process, time constraints and requirements and financial goals. The first meeting can be held on the business premises or the office of Hallmark Business Group, whichever is determined to be least disruptive to the life of the business operations.
Business Evaluation - Most business owners are good business operators but may lack the knowledge as to the true market value of their entity. Based on current financial information, HMBG will prepare a business valuation using a variety of valuation methods and techniques to arrive at a marketing price, including references to multiple databases of completed transactions. A discussion as to the proposed structure of the transaction will also help the business owner understand the possible net proceeds from the sale.
Engagement Agreement - Once an agreement is reached with You, the Seller as to the value of the business, the legal authority to market the stock or the assets of the business enterprise must be received from the business owner in the form of an engagement agreement or listing agreement. This agreement will clearly define the fees to be paid to the intermediary only upon the successful conclusion of the transaction.
Marketing Materials - HMBG will then prepare an assortment of written marketing and financial materials to be used with potential buyers. The information will be reviewed by the business owner prior to release to qualified buyer prospects. The materials will cover subjects of the business operations ranging from employee information, historical data, industry specific information and a financial review and analysis. Considerable effort will be spent on demonstrating the true economic benefit to the seller that is produced by the business. Recasting of the financial statements will provide a prospective Buyer with the true cash flow produced by the Business.
Confidential Marketing Plan - Whether drawing upon potential buyers from the pool of preregistereed buyers or marketing a business to other industry sources, confidentiality is of primary concern. HMBG's strong ties to other merger/acquisition professionals will allow the business to receive nationwide attention but yet in only in a non-specific manner so that the normal course of business operations is not disrupted. The quiet marketing efforts of HMBG allows You to continue normal business operations without being distracted by the marketing program. Buyers will typically ask for an onsite review of the business facilities and these visits are scheduled after business hours or other periods of time, which will allow, You, the Seller, to explain the attributes of the business to the prospective Buyer. The HMBG intermediary will always attend such meetings to guide the discussions.
Negotiation and Closing - The experience of many successfully completed transactions translates into additional dollars of net profits for the clients of HMBG. Your team of proven professionals, which will include your CPA, attorney and financial advisors, are encouraged to be a part of the process. Alternative methods and terms of structuring the transaction can benefit You by minimizing your tax burden. Experience indicates that the terms and structure are equally as important as the selling price. The conductor of the orchestra can best illustrate the position of the professional intermediary as he calls upon the appropriate party at the correct time as each party of the transaction contributes to the harmony of the closed deal.
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