MARKET RESPONSIVE VALUATION

 

The business valuation is extremely important. If it is too high, prospective buyers will not give the acquisition serious consideration. If it is too low, the seller will not realize fair market value. Our years of experience have allowed us to create and refine valuation models which are overwhelmingly accepted by buyers, sellers, franchisors and lenders.

 

Some factors taken into account are:

 

• Comparable sales

• Strength of the brand

• Sales and profit trends of the units

• Fee simple real estate values being within the affordability of the concept

• Amount of third party financing the transaction will support

• Fair returns on investment

 

 

PREPARING YOUR BUSINESS FOR SALE

 

We work with the seller to identify the areas which need to be addressed to successfully market the business such as:

 

• Lease extensions

• Environmental issues

• Debt restructuring

• Remodeling requirements

• Historical financial summaries

 

 

COMMITMENT TO CONFIDENTIAL MARKETING

 

All of our buyers are pre-qualified and have signed confidentiality agreements.

 

We have strong working relationships with hundreds of companies, multi-unit operators, and equity funds actively seeking acquisitions. We also have an extensive database of financially qualified operators seeking franchise opportunities. In addition, many buyers are referred to us by the principals of past transactions, franchisors we have worked with and lending institutions.

 

Advertising in trade publications, newspapers and the Internet is effectively used to expand our general database of buyers rather than selling a specific business. This is in keeping with our commitment to confidentiality. After a business has been valued, the most logical buyers are contacted and information is discreetly provided to them.

 

 

NEGOTIATION GUIDANCE

 

Creating a win-win-win scenario for the seller, buyer and lender is our mission. To that end, we help structure a Letter of Intent with protections for both the buyer and the seller. We help drive creative solutions to financing, bridge differences between the parties and provide input to draft fair, balanced contracts.

 

 

DEBT STRUCTURING

 

Our relationships with the top securitized, portfolio and SBA lenders supporting the franchise industry are second to none. The following are some of the areas we are involved in.

 

• Helping lenders see the merits of particular franchise concepts which they may not have targeted

• Pre-establishing the range of financing for each business we market so buyers will know what to expect

• Creating a competitive environment to help the buyer secure the best loan terms available

• Assisting the lender in gathering the required data in a timely manner

• Coordinating the lender approval process to expedite loan commitments

 

 

FRANCHISOR RELATIONS

 

Our entire company is made up of franchise industry professionals. Understanding each franchisor's company culture, objectives, strategies and requirements allows us to properly match the franchisor's objectives with the applicants we introduce.

 

Our knowledge of each franchisor's approval process helps both the prospective franchisee and the franchisor.

 

 

DUE DILIGENCE FACILITATION

 

We assign responsibilities and schedule key events for the parties and their representatives to move the due diligence process along expeditiously. Our goal is to insure pertinent information is available on a timely basis. We also help identify any issues pertaining to title, environmentals, remodels and help create solutions where needed.

 

 

BUSINESS PLAN CONSULTATION

 

Depending on the buyer's level of experience, we may:

 

• Consult on management structure, debt restructuring or exit strategies

• Help organize the step-by-step development of a business plan which focuses the buyer's thinking and presents a well thought-out plan

 

 

TRANSACTION CLOSING COORDINATION

 

Our experience helps us eliminate the impediments to closing. For example:

 

• Obtaining all licenses, permits, insurance, title, lease extensions and estoppels

• Delivering updated financials

• Meeting franchisor training requirements

• Securing franchise agreement extensions and assignments

• Negotiating exclusive development agreements and schedules

 

 

SELLING YOUR BUSINESS? CONTACT US!