International Aquisition Group is Proud to Announce the Sale of Two Additional Businesses
Online, October 21, 2009 (Newswire.com) - International Acquisition Group (IAG) is North America's largest M&A Company of its kind -- working with small to medium business owners. Since 1983, using their proprietary processes, IAG brings qualified business buyers and sellers together in such a way that helps those businesses get sold profitably. IAG has an impressive average success rate of 74% matching North American business sellers with a global business buyer network - regionally, nationally and internationally. The company's goal is to empower every small-to-medium size business owner to sell their businesses profitably, without the risk of the wrong people finding out which could reduce the value or damage the business. This is accomplished utilizing IAG's proprietary M & A processes so they capitalize on all of their hard work and effort.
The following Case Studies are just an example of what IAG has recently done to help buyers and sellers accomplish their goals with their premium Mergers and Acquisition processes:
Case Study: Retail Store
This retail store in the southwestern United States was doing approximately $1.5 million in sales annually. IAG found a buyer and closed the sale in ten months for $700,000.
The Challange
As is typically the case, finding a serious buyer was only half of the job. IAG needed to come up with some creative solutions to make the deal happen. The challenge the seller faced here was that buyers find it hard to get financing because retail profit margins are small. This ended up as a win win for both sides, and the seller was able to get into a related but not directly competitive business, which served him well in the coming years.
The solution
Keeping in mind that every deal structure is unique, this business was sold by structuring with the following criteria.
• The buyer would come up with a portion of the selling price in cash;
• The buyer would get more money by borrowing from his own family members and then issuing them preferred stock;
• The seller kept the property, agreeing to give the buyer a triple net lease with the option to purchase in five years;
• Then, only when all these arrangements had been worked out, the buyer went to the bank and got a loan to cover the remainder of the selling price. Since it was now a much smaller amount, it significantly lowered the bank's exposure.
Case Study: Manufacturing Company
This was an eastern United States drilling and tapping attachments manufacturer with $3.5 million in sales annually. It was sold for $1.9 million.
The Challange
The process here was unusual in that the seller had already located a serious buyer, who was one of the company's suppliers. They had been having serious discussions for about a year, and the buyer had already relocated his family in preparation for purchasing the business. But the negotiations had stalled. After IAG was brought in, the sale closed in six months.
The Solution
As with the sale of any business, there were many issues, some of which called for creative solutions. These included arranging for:
• The buyer and seller to share the expense of a new valuation.
• The buyer to assume control of the business prior to the closing of the sale.
Most Merger and Acquisition advisors and professionals stress "The time to sell is when you want to, not when you have to!" Furthermore, "Research tells us that an individual, investor group or any other buyer benefits greatly by buying an established business. Rather than starting from scratch, when you buy an existing business you get a customer base, goodwill, revenues, a product and efficiency generated by proprietary advantages, key business contacts and usually a continuity of management and personnel. People have a much higher chance of being successful by buying an existing business, rather than starting one up." International Acquisition Group effectively reaches businesses across North America, including in small-to medium-size markets where sellers may have an especially difficult time locating buyers themselves.
Sellers responding to IAG (intlag.com) are contacted by one of the company's more than 60 Business Analysts nationally. These specially trained professionals meet with business owners to determine if they have a good probability of being successful with IAG's buyer group. In the process they educate the business owners on the process of selling their business and recasting, coordinating and professionally presenting all financial information needed, including the essential accredited, independent 3rd party valuation of their business. This is all done before IAG takes the business to market so the seller has the highest probability of getting their business sold under the right terms and conditions.
Contact us today:
1-972-331-7540
1-866-498-6445
Email: [email protected]
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Tags: acquisitions, Mergers, selling