Chris Davis’ Post

What are the essential skills when it comes to negotiating a trade sale? Negotiating a trade sale is a complex process and, if conducted without expert guidance, can lead to the dreaded ‘value erosion’. Shaw & Co's M&A expert Rob Starr discusses some technical considerations when negotiating a trade sale: https://lnkd.in/ezUtaqp3 If you'd like to find out how we can help buy, sell or fund the growth of a business, please book an informal chat via our website. Or phone us on 0330 127 0100 or email hello@shawcorporatefinance.com #sellabusiness #buyabusiness #businessfunding

What are the essential skills when it comes to negotiating a trade sale? Negotiating a trade sale is a complex process and, if conducted without expert guidance, can lead to the dreaded ‘value erosion’. Shaw & Co's M&A expert Rob Starr discusses some technical considerations when negotiating a trade sale: http://bit.ly/3tlAnxB If you'd like to find out how we can help buy, sell or fund the growth of a business, please book an informal chat via our website. Or phone us on 0330 127 0100 or email hello@shawcorporatefinance.com #sellabusiness #buyabusiness #businessfunding

📺 [Watch] I bought a multi-million pound business using its own cash! 📺 In our latest video on our YouTube channel, discover how one of our Mastermind clients, Jamil, bought a multi-million pound business without using any of his own money – by using the company’s funds instead. This video is proof you do not need your own funds to buy a business. By following our Business Buying System and knowing how to put a deal together, you can acquire one or more businesses with no money down. In the video, Jamil reveals how he sourced the deal, the importance of identifying the vendor’s motivations and how he put the “deal jigsaw” together to make it happen. Watch the video to discover… 👉 How he found the deal – despite the business being listed with a broker 👉 The importance of understanding the seller’s motivation (and how this played into the negotiation) 👉 The No.1 element you need to look for in any business you acquire (if you do not want to buy a job) 👉 How to encourage the vendor to negotiate with themselves on price (this is why deal flow is so important) Watch here: https://lnkd.in/edvaY9JB 

We arived at a system that was so successful we had to restructure our business plans to accommodate the results. Our sellers were finding their businesses sold quicker, with less fuss and more communication, during the process. The results are astounding and we're even finding other brokerages, employing our services to assist where they've had businesses on the market for long periods of time. The system, reduces costs to the seller, provides a higher level of confidentiality and provides a quicker, less complicated take over of the business. We're even finding buyers of small businesses waiting for us to find the business of their dreams rather than looking elsewhere. If you'd like to take away the concerns of high sale transaction fees and interference of your confidential information. Contact us today for an absolutely free Market Assessment & discussion around selling your business. #businessbroker #sellingabusiness #sellyourbusiness #sellingyourbusiness #businessadventure

4 technical essentials to remember when negotiating a trade sale To read more visit: https://lnkd.in/ezUtaqp3 Do you have a story to tell of exiting a business you owned? Tell us what you think in the comments below... If you'd like to find out how we can help buy, sell or fund the growth of a business, please book an informal chat via our website. Or phone us on 0330 127 0100 or email hello@shawcorporatefinance.com #sellabusiness #buyabusiness #businessfunding

Let’s explain the concept of a “tail” in the context of business brokerage introductions and its impact on full transaction fees ◾ Introduction Tail Period: – When a business broker introduces a potential buyer to a seller during the contract period, it creates a connection. – The “tail” refers to the duration after the contract expires during which the broker remains entitled to a full carried-interest if the previously introduced buyer eventually purchases the company. – Essentially, it’s the extended window for the broker to benefit from their initial efforts. ◾ Tail Length and Full Transaction Fee Impact: – If the tail is 24 months long (meaning the broker retains rights to a fee for 24 months AFTER contract expiration), this is how it affects the full transaction fee: – Scenario: The contract expires, and 23 months later, the introduced buyer acquires the company. The tail was 24 months. – Effect: The broker is still eligible for a full carried-interest, even though the contract had ended. – Calculation: The broker’s fee is typically a flat or sliding percentage of the transaction value. – The broker receives this carried-interest despite the 23-month gap between contract expiration and the transaction, since the broker achieved the goal of introducing the ultimate buyer to the seller. ◾ Considerations: – Brokers and sellers negotiate tail periods upfront. Longer tails provide more extended protection and motivate a broker to work harder for their business partner, the seller. – Buyers should be aware that their acquisition could trigger a fee even after the contract ends. #sellingyourbusiness #sellyourbusiness #sellbusiness #sellingabusiness #buyabusiness

Here is an example of a deal we just picked up on assignment... Due to confidentiality, I won't specify address or where it is located but here are the numbers: Market Value: $500,000 Assignment Purchase Date: 2018 Assignment Purchase Price: $400,000 Original Purchase Price: $400,000 (2018) Seller was in a distressed position and due to the builder agreement they had to sell off-market so less reach than selling a unit like this on-market. 5-6% closing costs = $24,000 All in = $424,000 On Buy Lift = $76,000 Down Payment: $84,800 Instant ROI = 90% Return Of Capital On The Buy 5 year exit @7% growth per year = $675,000 (not factoring in that growth is compounded) On a deal like this, the buyer is ahead about $76,000 vs buying something on the market in the area. The potential exit on a deal like this would be $251,000 on $84,800 invested. That would be a 3X return on your money in 5 years. How can you source these deals? (1) Build broker relationships - these deals are off-market. (2) Understand what you are buying, be an educated buyer (3) Don't settle, find the right deal. Happy investing!

How to Make Money Online with None to Start In this video, I show you how can start making money online if you have about an hour per day to spare. The best part is that you DON'T need to invest anything until you've already made a sale. Check it out and let me know if you have any questions. Til next time, keep pushing. Ryan Steven #Ecom #eBay #eBaySeller #eBayDropshipping #Dropshipping #Arbitrage #RetailArbitrage

There are multiple ways a founder can sell their business, with pros and cons of each. A trade sale where the perfect buyer is found, business synergies (I.E. 2+2=5) tend to lead to the highest price for your business. People can voluntarily pay over the odds when they're not only getting your business with its assets/profits, but also a positive knock on impact on their existing business. An EOT will struggle to match that in monetary terms. Though the tax free perk can sweeten the deal financially. But trade sales can be hugely stressful, and the final sale price post warranties/claw backs can be significantly lower than the initial offer that was so appealing. #EmployeeOwnershipTrust #SuccessionPlan #ExitStrategy