Business Sales Awards

Mergers & Acquisitions Selling a Business 

2017 marks Lakes Business Group;s 10th year assisting privately held companies execute their exit strategy in the lower-middle market.   Our team has had the privilege of working with outstanding clients over the years.   We take pride in designing and implementing our clients’ goals, while leveraging value up and getting maximum dollar for the sale of their businesses.

Throughout the past 10 years, our office has grown to become the #1 top producing M&A advisory firm in the Midwest.   We have been providing Merger & Acquisition services in a wide range of industries.   Below is a picture of our ‘trophy wall’ in our office.   These awards are from 2008 to the present.

awards and plaques on office wall - M&A firm awards

These award plaques and trophies include:
2017: Acquisition International’s Leading Mergers and Acquisition Adviser of the Year
#1 Internationally Ranked VR Office – 1st Quarter 2017
#1 Internationally Ranked VR Office – 2nd Quarter 2017

2016: #1 Internationally Ranked VR Office!
#1 Internationally Ranked VR Sales Agent – Mark Smith
#2 Internationally Ranked VR Sales Agent – Joe Braier
#5 Internationally Ranked VR Sales Agent – Nicole White
#6 Internationally Ranked VR Sales Agent – Andrew Falci
#9 Internationally Ranked VR Sales Agent – Michael Szmanda
#10 Internationally Ranked VR Sales Agent – Larry Heck

2015: #1 Internationally Ranked VR Office!
#1 Internationally Ranked VR Sales Agent – Michael Szmanda
#3 Internationally Ranked VR Sales Agent – Mark Smith
#7 Internationally Ranked VR Sales Agent – Tom Alberts
#8 Internationally Ranked VR Sales Agent – Larry Heck

2014: #1 Internationally Ranked VR Office!
#1 Internationally Ranked VR Owner – Tim Bullard
#1 Internationally Ranked VR Intermediary – Mark Smith
#3 Internationally Ranked VR Intermediary – Andy Schmelzer
#4 Internationally Ranked VR Intermediary – Michael Szmanda
#7 Internationally Ranked VR Intermediary – Joe Braier
#8 Internationally Ranked VR Intermediary – Larry Heck

2013: Most Valuable Intermediary – Tim Bullard – President/CEO
#2 Internationally Ranked VR Office!
#3 Internationally Ranked VR Intermediary – Joe Braier
#9 Internationally Ranked VR Intermediary – Michael Szmanda

2012: #1 Internationally Ranked VR Office!
#2 Internationally Ranked VR Intermediary – Mark Smith
#3 Internationally Ranked VR Intermediary – Joe Braier

2011: #1 Internationally Ranked VR Owner – Tim Bullard- President/CEO
#2 Internationally Ranked VR Office
#7 Internationally Ranked VR Intermediary Joe Braier

If you are considering selling your business  call our office at 262-347-2083

Do You Have a Business Exit Strategy?

Exit Strategy - Selling a Business Selling a Business 

Most business owners plan to sell their business to fund their retirement. It is the number 1 reason for business owners, followed by burnout and new opportunities.   Yet, when it comes time to sell their business, less than half of all business owners plan ahead.

Deal Size #1 Reason #2 Reason
<$500K Retirement Burnout
$500 – $1MM Retirement Burnout
$1MM – $2MM Retirement TIE: Burnout/Opportunity
$2MM – $5MM Retirement New Opportunity
$5MM – $50MM Retirement Burnout
These stats are fom an IBBA.org article in early 2017.

Business owners assume their business is salable, but that is not always the case. By not having an exit plan and understanding the value of your business, you are taking a huge risk. Even if you are not ready to sell your business, you should get an annual estimate value of your business. Lakes Business Group can help. Our agents work with businesses in all industries and can provide an evaluation for your business with industry comparisons to help you properly prepare ahead.

Five Business Exit Strategies

Entrepreneur.com has a article with five primary exit strategies available to most entrepreneurs,  written by Stever Robbins.   Following is a short synopsis of these five strategies.

1- Just Take It:  One favorite strategy of forward thinking business owner is simple to bleed the company dry on a daily basis.  I mean pay yourself a huge salary, reward yourself with a gigantic bonus regardless of actual company performance, and issue a special class of shares that only you own that gives you ten times the dividends the other shareholder receive.  

2- the Liquidation: One often-overlooked exit strategy is simply to call it quits, close the business doors and call it a day.  I don’t know anyone who’s founded a business planning to liquidate it someday, but it happens all the time. 

3- Selling to a Friendly Buyer:  If you’ve become emotionally attached to what you’ve built, even easier than liquidating your business is the option of passing ownership to another true believer who will preserve your legacy.  Interested parties might include customers, employees, children, or other family members. 

4- the Acquisition:  Acquisition is one of the most common exit strategies: You find another business that wants to buy yours and sell, sell, sell. If you choose the right acquirer, your value can far exceed what would be reasonable based on your income. How do you select the right company? Look for strategic fit: Which acquirer can buy you to expand into a new market, or offer a new product to their existing customers?

5- the IPO (initial public offering): There are millions of companies in the U.S., and only about 7,000 of those are public.  If you’re funded by professional investors with a track record of taking companies public, you might be able to do it.  You start by spending millions just preparing for the road show, where you grovel to convince investors your stock should be worth as much as possible. (You even do a “reverse split,” if necessary, to drive up the share price.) Unlike an acquisition, where you craft a good fit with a single suitor, here you romancing hundreds of Wall Street analysts. If the romance fails, you’ve blown millions. And if you succeed, you end up married to analysts. You call that a life?

This is a small portion of the article titled “Exit Strategies for your Business” by Stever Robbins

Business Information Needed when Ready to Execute your Exit Strategy

Exit Strategy - Selling a Business Mergers & Acquisitions Selling a Business 

You’ve built your business and now ready to execute your exit plan.    When contacting your business consultant, they will ask for the following information to complete an offering memorandum outlining the details of the business.

FINANCIALS:

  • Notes/Liens/Liabilities
  • AR Aging Report
  • AP Report

CUSTOMERS/VENDORS:

  • Number of Customers in Database/Number of Active Customers/Customer Concentration
  • Number of Suppliers of Vendors/Supplier/Vendor Concentration

CONTRACTS:

  • Vending Contracts
  • Maintenance Contracts
  • Lease/Purchase Agreements

HUMAN CAPITAL:

  • Corporate Employee Chart
  • Employee Benefits Summary

CORPORATE MATTERS:

  • Corporate Documentation
  • Corporate Insurance Policy
  • Any Shareholders agreements

IF REAL ESTATE IS OWNED:

  • Floor Plans
  • Survey

MISC ENGAGEMENT DOCUMENTATION:

  • Partnership/Consent of Spouse or Corporate/Partnership Resolution
  • Licenses & Permit Documents & Process to Obtain Licenses and Permits
  • Copies of Patents, Trademarks, Copyrights, Etc.
  • Description/Documentation of Technology being used
  • List of products and services sold  Top 5 Income Producing Items
  • Any outstanding legal issues

What Buyers Look for in a Business Opportunity

Buying a Business Selling a Business 

You’re ready to sell your business. You assume there’s a buyer out there who will pay you a fair price and then nurture the company with the same attention you have. What’s more, selling the business is a major part of your retirement plan.

Buyers look at businesses differently than sellers. So to achieve the outcome you want, it’s important to think like buyers and understand how they evaluate a business.

There are many types of buyers: strategic and financial, individuals, companies, and private equity funds. Despite differences, all buyers consider how much they’ll invest to acquire a business, the amount of risk they’ll bear and the potential return on their investment. To evaluate an opportunity, buyers focus on three major areas:

  1. Cost and Terms
    What will it take to acquire the business? How much cash and how much debt? What are the deal’s terms and conditions?
  2. Continuity
    Will the business continue to operate similarly after the sale? Much of the risk of buying a company relates to continuity. For example: The current owner has personal relationships with customers, distributors or vendors that the new owners may have to struggle to maintain, The owner has special expertise that is undocumented and difficult to learn, Key personnel aren’t committed to staying, or Outside competition looms. Sellers armed with solid responses to these types of continuity concerns are more likely to get their desired price. Even if you don’t want to sell your business for a few years, take steps now to ensure it can run smoothly without your personal involvement. That independence could be worth millions when you sell.
  3. Growth
    Are there unexploited opportunities? You may have focused your sales efforts in one geographic region, but there may be many opportunities to take the product national or international. A buyer that believes it can increase revenues substantially will pay more for the business than one that believes the current owners have already maximized opportunities. What sellers should do?

It may seem counter intuitive, but the things you may be most proud of can work against getting the best price for your company. Not many entrepreneurs like to boast that their company could run just fine without them or that there are plenty of opportunities they’ve failed to exploit. Yet these may be the very factors buyers seek, along with lower cash requirements. Please call us for help in understanding how to best present your company for sale.

Taken from an article written by Peter C King,  VR Business Brokers/Mergers & Acquisitions, CEO