One of the most important decisions for a business owner is when to exit or transfer ownership of their company. This decision requires business owners to make an informed and honest assessment of the entire situation from a corporate, shareholder, employee and family perspective.
Most business owners have owned and operated their businesses for many years, but have little or no experience with the overwhelming task surrounding their exit. There are many questions an owner should consider when planning their exit. Is it the right time to sell? Should they retain an ownership percentage? What is the value of the business? How deals are structured and are they protected retaining minority ownership or holding a note?
At Transact Partners, our mission is to help privately held business owners navigate complex business sale transactions with expert legal and financial advice each step of the way. Transact can provide you with two distinct approaches to selling your business. We offer both of these services with no upfront fees or retainers.
Client Representation Service
In our Client Representation Service, our philosophy is to work with a limited number of clients so we can devote our time and attention to every transaction. Transact Partners will represent business owners in the confidential sale of their privately held company. We work with owners in a fiduciary capacity by managing the entire process: from introducing the buyer, through out negotiations and to the closing table. Although each ownership situation is unique, Transact’s methodology usually consists of the following:
- Prepare the Business for Sale: We evaluate the business and suggest measures to enhance value. We develop our “Business Offering Memorandum” and assemble pre due diligence information.
- Market the Opportunity: We will confidentially identify qualified buyers by utilizing our internal database, directly contacting qualified strategic and financial buyers including Private Equity Groups.
- Identify the Right Buyer: All buyers must sign our Non-Disclosure Agreement before receiving any information. We qualify all buyers and create a spirit of competition to enhance the value of the opportunity. It is our fiduciary duty to present all offers and allow our clients to select the best option for their particular situation.
- Manage & Close the Deal: In conjunction with an owner’s advisory team, our objective is to determine the appropriate transaction structure while reconciling buyer and seller objectives. Furthermore, we play a key role in managing the due diligence process, negotiating terms and getting the transaction closed.
- Transition & Post Transition Assistance: We can guide the client through post transaction issues including wealth management alternatives.
Transact Partners does not charge upfront fees or retainers for this service. In our Client Representation Service program, Transact Partners will receive a success fee paid by the seller when the transaction is closed.
Buyer Introduction Service
As a business owner, you have most likely entertained calls, and potentially an unsolicited offer, from a Private Equity Group or Corporate Acquirer. On the surface, some of these inquiries may be enticing; however, it is hard to determine if the buyer is committed to your company and is qualified financially to complete a transaction.
In response to market demand, Transact Partners has developed a unique service with no fee obligation on the part of the business owner. In our No Fee Buyer Introduction program, we confidentially approach well qualified prospective buyers through our relationships with domestic and international Private Equity Groups and Corporate Acquirers.
In this program, our role at Transact is “match maker” and our fee is paid by the buyer if a transaction is completed. Furthermore, you would not enter into any agreement with our firm and are under no obligation to complete a transaction with any buyer we introduce to you.
We understand that this program is unique, so we have provided a brief description of the process below:
- Transact will provide sign a Confidentiality Agreement to protect your interests
- Transact will review three years of financial data & determine your goals/objectives
- Determine the best possible acquirers by matching your company with the acquisition criteria of Private Equity Groups and Corporate Acquirers.
- Transact will develop a “blind” summary of your company and push this information to prospective buyers
- Interested buyers will execute a Non-Disclosure Agreement prior to releasing any information about your company
- Transact will facilitate the data request and answer most question without your involvement
- Transact will formally introduce them to you and you/your advisors would negotiate directly with the buyer
- Transact will continue to serve in an Intermediary capacity through the offer, due diligence & closing of the transaction
Please contact Transact Partners at 919-844-2929 or through the contact form for more information on our services for business owners. All information, inquiries and conversations are held in complete confidence.