• Life Insurance Policies: Businesses are often sold due to the owner’s advancing age or declining health. These policies, including term life, may have substantial market value. Click here for more information.
• Intellectual Property: A firm’s technology, market knowledge and even their phone number may have significant value. Our founder’s experience in patents and licensing help us to identify and quantify valuable intangible property. This can often significantly increase the value and marketability of a business.
• Under-performing Assets: Real estate owned by the business seller is a classic example. Small business buyers are typically focused on maximizing cash flow with a minimum down payment. They typically need to focus their down payment on their equity investment in the business, not real estate. Buyers will however need to secure long term rights to their new facility in order to obtain financing. Our affiliated real estate brokers may help arrange a sale/lease-back arrangement so the seller can cash out and the buyer can better achieve their own investment objectives.

For Business Buyers

Each buyer, whether as an individual or organization, brings their own set of experience, knowledge and capabilities into a deal. We interview our buyer clients and advise them to consider opportunities where their own characteristics can add value. Very often, a buyer can use his own knowledge and relationships to advantage by either increasing sales or reducing costs. Their cash flow and the value of business would jump sharply giving the buyer the opportunity to purchase a business at fair market price and immediately increase the value and effectiveness of the acquired company.

The available down payment is a critical determinant of a buyer’s purchasing power. IRAs and 401Ks are classic under-performing buyer assets. They are not acceptable as collateral and if liquidated, carry heavy tax penalties. Few realize that mechanisms exist for utilizing these funds for business acquisition without incurring tax liabilities. Click here for more information.