GPS Acquisitions helps B2B clients to buy, sell and liquidate small privately held businesses.
GPS Acquisitions provides a variety of services to help prepare owners of privately held businesses to successfully exit their businesses for maximum value and minimum stress. As experienced small business owners who have bought, sold, liquidated, and transferred several businesses, we have developed and can deliver a comprehensive process that guides owners through an efficient exit strategy. We guide clients through the entire process, from valuation, to business sale marketing, to asset sales negotiations, to business transfer. Our goal is to provide a seamless transition of your business with a minimum amount of invasiveness so you can enjoy a low stress transition to the next phase of your life.
Our relationship with a business owner can begin anywhere in the continuum of services but usually starts with a Business Valuation. Having a professional business valuation, minimizes the risk of undervaluing the business you have acquired and grown. This phase of service provides a financial analysis, including intangible assets, giving you an empirical reflection of your company's worth. Another component of our method is a review of recent offers of sale that are similar to your business. This benchmark provides a general idea of the current state of the industry and a glimpse into where the industry may be headed.
The Cash Flow Analysis is the most important method we use to value a business. Using a 3-year format, which includes full income statements, we take a detailed look at income, expenses, indebtedness, noncancellable contracts, assets, inventory, and other factors to develop an empirical view of the business and to weave a cohesive narrative for prospective buyers. Of course, this analysis only provides a baseline number, ultimately a business’ value is what the buyer is willing to pay.
Of the three components of a Valuation – Assets, Inventory, Goodwill – the Goodwill, or those Intangible Assets, form the foundation of what may attract prospective buyers. Notably, Intangible Assets such as location and lifestyle are highlighted and incorporated into the overall image of the business.
Once a sound Business Valuation is developed and a selling price is generated, the next phase is Going To Market. Whether this is done in a Stealth Mode – without putting up for sale signs or advertising locally – or Open Mode – advertising locally as well to a broader demographic - we employ a variety of methods to take your company to market. The process starts with creating the documentation – Summary Sheet, Prospectus, Letters of Intent - needed to attract buyers. Once completed we will execute a specific marketing plan for your business which may include sharing the information with a network of business entrepreneurs and directly contacting prospective buyers. Of course, we also follow up on business owner generated leads.
The marketing plan will attract attention from an assortment of interested partied which takes us to the next phase - Negotiating The Sale Of Your Business. Our experience and professionalism in the process of selling a business enables us to sift through the chatter and hone in on the genuinely interested buyers. We will negotiate on your behalf to vet the buyers and develop a deal that reflects your requirements and needs. All offers will be given our full attention and will be presented to you with our frank assessment. You will make the ultimate decision about which offer to take and which buyer to engage with; but we will be with you the whole way.
When you decide to accept an offer, we move into the next phase of Deal Closure. Structuring the deal is crucial to your overall success and the combination of our experience with our understanding of your personal and professional situation we can structure a deal that achieves your requirements. This begins with our drafting of an Asset Purchase Agreement and continues through the inevitable revisions needed to achieve mutually acceptable closure. Also included in a Business Transition Plan, a detailed list of items and time frames used to guide the seller and buyer through the myriad steps to successfully and gracefully transfer control and ownership of the business. We will be with you throughout this phase to ensure a successful exchange of assets and compensation.
Post-Sale Support begins after the sale is consummated. During this period, we will continue to be available to help clarify the terms and conditions of the agreement; to help to resolve conflicts that arise from the sale; and to answer questions related to the sale.
Business Valuation Fee starts at $300.00 payable upon mutual signing of the Business Valuation Agreement.
Business Sale Fee covers the following phases: Going To Market, Negotiating The Sale, Deal Closure and Post-Sale Support. The Business Sale Fee includes a negotiable nonrefundable retainer fee plus a sales fee which is nominally 2% of the Final Sale Price. The retainer fee is payable in full upon signing the Business Sale Agreement. The sales fee is payable in full at the Closing specified in the Asset Purchase Agreement.