Syed Brokerage & Capital is an inclusive one-stop Advisory Firm to cater to all of business buyer/seller’s needs.
Watch out for Tire-Kickers
Some sellers might think that someone walked in and made an unsolicited offer to buy your company is great. Conversely, if not managed appropriately, these offers could become a genuine problem and stress for your company’s.
Sometimes, Syed Brokerage & Capital is approached by an owner after she/he has been contacted and offered by a buyer. An owner typically desires guidance and or materials from us on the merger and acquisition and sale of the company, process. In these situation, the Seller plots to see how this buyer’s offer plays out.
In our 25 Years of the experience, this Seller’s situation, becomes a stressful process for the Sellers, but also, this seldom has the outcome, which the Seller has originally desired.
These buyers would always want a big discount in the price, since they are only bidders and no competition in the acquisition process. Most of the time, such buyer shall sidetrack the Seller’s attention away from operation of the Seller’s business, which eventually would affect the Seller’s company’s revenues and or margins. Since the buyer is the only bidder, they would insist on getting bigger price concessions and Seller would be forced to do so.
If you have received an offer, we can still quickly step and rein the sale process. Thereby, liberate the Seller from this downward spiral in the business performance and thereby protecting and insulating the Seller from the stress of direct negotiations with the Buyer.
OTHER OPTIONS OF CASH FOR SELLERS
Some businesses might find it hard to locate a buyer for the following reasons:
- The Business Category is non-essential to conventional buyers
- The Business’s profit margin is too thin
- Buyers lowball offer to the seller
- Company is too young and lacks a history of financial data
In such case scenarios, we will help Seller identify other funding solutions case we might want to offer another f
- We will help list the company on a public exchange
- We will guide the Seller to expand the company by bringing in an equity partner
- We will assist enhance the market cap valuation of the company
Therefore, by implementing wide numbers of creative solutions, our brokers will empower the seller and add the following benefits;
- More liquidity is injected into the Seller’s company, by selling shares in the public market and adds more worth and higher multiples by going public.
- Now, by having more equity capital, the seller can grow the business operation which was not possible before.
- We can help the Seller borrow against the public shares, which also brings another tax saving, since these borrowed funds are tax free.
- The additional liquidity offers the Seller the opportunity to acquire and add-on other companies on its existing platform.
- Above of all, the Seller still retains the control of their business.