Joseph Associates International, Inc. is an Illinois-registered firm offering an integrated approach to business brokerage that incorporates long term exit planning, business valuation and strategic advisory services designed to grow value prior to a sale. The brokerage side of our practice focuses on businesses with an enterprise value of less than $5MM that are intended to be sold with an asking price set at Fair Market Value. Larger businesses or special situations may benefit from our investment banking or strategic advisory services.
Our patent-pending process for working with first-time buyers provides us with a proprietary pool of candidates and allows us to educate those buyers who approach us regarding any given opportunity. Nearly all of the first-time buyers that have bought businesses from our firm have seen our How to Buy a Business Seminar either live or through video. For the delicate dance that is the sale of a business, both buyer and seller must know the steps.
The first step in the process is to determine the Fair Market Value of the business. While JAI staff will collect the information, the final determination of value is made by an independent, third-party professional accredited in business valuation by the American Institute of CPAs. Our role in the process is to compile the information package for the valuation firm in a way that best highlights and explains the unique characteristics of the business. Our intent is to achieve the highest supportable value.
Upon completion, we present and explain the report. The owner then decides whether or not to proceed with a sale. If the decision is to initiate a sale, the Fair Market Value from the third-party valuation report becomes the asking price and should approximate the actual sale price as long as the facts and the market don’t change.
Prior to marketing, we prepare offering materials which the buyers receive once they have been screened, qualified as viable prospects and have signed confidentiality agreements. The written document, commonly referred to as the Confidential Memorandum, is prepared by the primary listing broker and one of our on-staff accountants. We also produce a choreographed video presentation including a walking tour of the facility and interview with the owner. The goal is to consistently and accurately present the business without having to visit the location. This protects confidentiality and keeps you focused on your operations. The completeness of presentation allows our firm to demand a written indication of interest from the buyer with price and terms prior to an actual meeting.
Through the marketing phase, we are collecting the information that will subsequently be required during due diligence. Having the materials prepared in advance speeds the sale process and maintains critical momentum. Once we have come to a basic agreement on price and terms with a prospective buyer, we will continue to work with your advisors and those of the buyer to craft the best possible deal. Owners typically want to maximize total consideration at closing while minimizing taxes and the buyer’s post-closing recourse.
We caution business owners to not select their advisors based on billing rates or friendship. This is a highly specialized area of practice. The skill and experience of the professional advisor can have a significant impact. We will be pleased to provide you with a list of M&A attorneys, accountants and financial advisors that will guide you through the process. We provide a similar list to the business buyers because it is in your interest that they be well represented to avoid derailments due to poor counsel.
Our most recent “Working with Private Equity Groups” seminar is available to watch at no charge and is designed to provide business owners with guidance on how best to either partner with or sell their business to a private equity firm. Even if your business is one that may not attract PE investment, it is beneficial to understand how professional business buyers evaluate business opportunities. The link to the videos for entire program is to the right.
Please call to see how we may be best able to assist you. 312.212.8046
We produce a full video tour for every business we represent and display the presentation through our restricted access area of the website in full HD quality. This eliminates the need for unproductive site visits.
Our How to Buy a Business Seminar attracts hundreds of business buyers annually and features leading experts from a range of professional disciplines. Click here to view the videos from a recent seminar at The University of Chicago.
Credentialing® is part of our patent-pending process for working with first time business buyers. Early in our history, we recognized the need to provide information and tools to prospective buyers to enable them during their search. This is a proprietary fee-based service that includes a full psych assessment, education, introduction to lenders and individual coaching. The seminars and Credentialing® program create an independent stream of prospective buyers.
“Working with Private Equity Groups” is a seminar that has been designed and presented to audiences at the University of Chicago in conjunction with their Entrepreneurial Roundtable for several years.
