Buying a Business
Buying or selling a business is a complex task because there are many moving parts. The moving parts obviously include the buyer and seller, but can also include lenders, landlords, franchisors, attorneys, accountants, customers, suppliers, competitors, employees, and others. Many times, individual and corporate buyers need the services of an M&A Advisor or Business Broker to help them find a suitable target. Having an experienced and seasoned third party standing between the buyer and seller provides a cushion that can help a deal become successful. This is where we come in.
DBG Advisors is a great resource for those who are interested in finding just the right business to acquire in Texas. We provide Buy-Side Representation services for entrepreneurs, corporations, or Private Equity Groups.
We can be a resource for locating companies since we have access to a variety of networks of businesses for sale, prospective sellers, and other business brokers in Texas. Listing businesses for sale can be time consuming and therefore not all opportunities that a business broker is working on may be officially listed on the company’s website. Therefore, individuals interested in acquiring a business would be well served by establishing a relationship and registering as a buyer with DBG Advisors.
We suggest that prior to engaging our services; a buyer should prepare a resume, put together a financial net worth statement, and a clear understanding of their investment criteria (industry, location, size, price range, earnings requirement).
In some cases, securing the money to purchase an existing company can be a demanding process for acquirers. Some of the guiding factors that should be considered are the size of the company, type, and quantity of assets, amount of required funding, personal credit scores, personal industry experience, and the business cash flow history of the company you are seeking to acquire.
We have a well-established network of trusted funding sources that can help in assessing the number of available options and finding the solution that best suits the targeted business and individual buyer requirements. Prior to investing considerable time on any specific business opportunity, acquirers should be prepared to have an open conversation with us to fully understand how their financial situation will support the acquisition of a specific business based upon the price, terms, and conditions of sale.
We have experience in helping our clients with the due diligence process especially in the evaluation of the financial, and operational documents required to properly analyze the business to determine if it meets their investment criteria. Reviewing the financial statements with the buyer and advising them on the methodology used to value and price the business is another key role we perform.
Working with us will often save the buyer considerable time during the discovery phase as businesses that are overpriced, unprofitable, or dependent on questionable or illegal business practices will be eliminated quickly.
It is in the best interest of all parties to have experienced, trusted advisors involved in a transaction since hiring the wrong advisor would probably cause the deal to fall apart or subsequently fail. We have solid relationships with professionals in the accounting, legal, tax and financial fields. Middle market business sales are a very specialized field and we can be your contact source for referrals with the proper attorneys, CPAs, tax advisors and financiers who have extensive experience and proven competency in middle market business transactions.
Buy-Side Professional Service Fees
DBG Advisors is in the business of helping individual Buy-Side clients buy existing companies in order to take them to the next level. We also work with corporate Buy-Side clients in order to help them grow by acquisition. Our fees for this service are simple and reflect the industry standards. When we sign a Buy-Side Agreement we receive a $7,500 retainer to cover our initial costs. In addition, we also receive a Professional Success Fee of 5% of the total compensation paid to the business owner. The Professional Success Fee is paid at closing.
Why Choose DBG Advisors When Buying a Business?
- Trust and Ethics: When buying a business, you want to be confident that the intermediary is committed to a strong set of ethics, so you know your interests are fully protected. We are committed to honestly represent your best interest above our own.
- Communication: Buying a business requires dealing in financial, legal, industry and other forms of jargon. We can communicate these details to you in a way that it is easy for you to understand if needed.
- Network of Professionals: Buying a business often brings together different professionals such as accountants, attorneys, property management companies, landlords, escrow officers, appraisers, tax agents, lenders, franchisors and financial planners. The good thing is, we have trusted professionals we can introduce you to if your business requires that expertise.
- Finance: Most sellers do not wish to finance the sale of their company themselves, or they wish to carry as little as possible. We can introduce you to financial professionals who would finance the deal for you, given you are a qualified buyer.
Buying any item of value must be done properly so the value of the asset is protected. Using our professional business intermediary services to guide you through the process and protecting your investment is good business.
Do You Know What Your Company is Worth?
Contact DBG Advisors today! Get full value for your company.