Tags |
|
|
Links |
|
|
Other Added - Business Broker Versus Merger and Acquisition Advisor - The Monthly Fee Objection
If you’ve ever seen the Godfather, I’m sure you remember the phrase, “Make them an offer they can’t refuse.”In the movie it often meant an offer backed by force. In real life the situation is often more complex. The modern day Godfathers seldom need violence. They know the wants, needs and desires of their target market.There’s a lot we can learn from the modern day Don Corleones.1. There’s more money t
Conclusions The deciding factor is in cost benefit. An M&A firm is going to cost a lot of money and you are going to be paying either an up front or monthly fees without a guarantee of success. If your business is smaller and is a commodity type business or Main Street business where the target buyer is an individual, an M&A firm will not add much value and is not worth the fee.
If your business is larger, complex, unusual, strategic, with a high component of intellectual property or technology and subject to a broad
Finding products to sell is fundamental to those who have Internet stores, auction sites, or sell through stores such as Amazon or Ebay. However, it may be difficult to determine where you will find those products to sell.There are a number of different ways to find products to sell as well as many scam artists who like nothing more than to prey upon unsuspecting but well-meaning storeowners. Whether selling online or i
For many types of businesses I would agree that a seller should hire a business broker and not pay a monthly fee. If that business is a smaller "Main Street" business like a dry cleaner, gas station, convenience store, restaurant, or other business to consumer organization, a business broker will be fine. They generally are selling these businesses to individual buyers and not to corporations. A very important point, an individual buyer will never pay strategic value for a business. He is buying a job. The Main Street business sells for a rule of thumb financial multiple.
For business brokers the selling approach is more passive than the approach of a M&A Advisor because a BB has to have a large number of transactions going at one time. He is therefore limited in the time he can devote to each contingent engagement. Their selling approach is often comprised of putting the listing on a business for sale Web Site, placing a business opportunity ad in the Sunday paper, and sending a mass email to their accumulated list of individual buyers.
A business that is business to business or B2B is more likely to be acquired by a corporate buyer. Reaching these buyers is far more difficult and far more labor intensive. Mailings are no longer effective, email does not work, business for sale Web Sites are not visited. The method that works is the old fashioned dialing for dollars approach. Reaching the targeted decision maker takes an average of ten phone dials.
When you do get through, you have about 30 seconds to articulate the opportunity and establish your credibility. The M&A firm's objective is to interest multiple strategic corporate buyers and get a competition going. That can result in some very lucrative exits for their business owner clients.
Another common objection that we hear from business owners about the monthly fee is, "We want you to have skin in the game. If you get the business sold and we win then you win." At the lower end of the middle market the monthly fees are normally in the $5,000 to $10,000 per month range. The M&A firm will be performing $15,000 to $25,000 of work if it were to bill the client hourly. The M&A firm, on this basis, usually has as much skin in the game as the business owner incurring the monthly fee. If the M&A firm does not complete the sale, they lose money on the engagement.
Conclusions The deciding factor is in cost benefit. An M&A firm is going to cost a lot of money and you are going to be paying either an up front or monthly fees without a guarantee of success. If your business is smaller and is a commodity type business or Main Street business where the target buyer is an individual, an M&A firm will not add much value and is not worth the fee.
If your business is larger, complex, unusual, strategic, with a high component of intellectual property or technology and subject to a broad
Everyday millions of people go to jobs that they can't stand, with bosses that they can't stand, and do exactly what they can't stand doing. In a word, this life sucks. So hopefully in this article I can give you a bit of advice on how to find your dream career.Have you ever gone to work, and as you're supposed to be working, sat day dreaming about something that you'd rather be doing instead. Things such as fi
For business brokers the selling approach is more passive than the approach of a M&A Advisor because a BB has to have a large number of transactions going at one time. He is therefore limited in the time he can devote to each contingent engagement. Their selling approach is often comprised of putting the listing on a business for sale Web Site, placing a business opportunity ad in the Sunday paper, and sending a mass email to their accumulated list of individual buyers.
A business that is business to business or B2B is more likely to be acquired by a corporate buyer. Reaching these buyers is far more difficult and far more labor intensive. Mailings are no longer effective, email does not work, business for sale Web Sites are not visited. The method that works is the old fashioned dialing for dollars approach. Reaching the targeted decision maker takes an average of ten phone dials.
When you do get through, you have about 30 seconds to articulate the opportunity and establish your credibility. The M&A firm's objective is to interest multiple strategic corporate buyers and get a competition going. That can result in some very lucrative exits for their business owner clients.
Another common objection that we hear from business owners about the monthly fee is, "We want you to have skin in the game. If you get the business sold and we win then you win." At the lower end of the middle market the monthly fees are normally in the $5,000 to $10,000 per month range. The M&A firm will be performing $15,000 to $25,000 of work if it were to bill the client hourly. The M&A firm, on this basis, usually has as much skin in the game as the business owner incurring the monthly fee. If the M&A firm does not complete the sale, they lose money on the engagement.
Conclusions The deciding factor is in cost benefit. An M&A firm is going to cost a lot of money and you are going to be paying either an up front or monthly fees without a guarantee of success. If your business is smaller and is a commodity type business or Main Street business where the target buyer is an individual, an M&A firm will not add much value and is not worth the fee.
If your business is larger, complex, unusual, strategic, with a high component of intellectual property or technology and subject to a broad
Most people don’t like change. It means having to re-adjust routine, change habits and throw your order of process into upheaval. You are leaving your comfort zone. Most people don’t want to do this, so those people fail. Even when that change could mean something GOOD people balk.Internet marketing is no different. You get used to doing something one way, you use the same ad sources for your marketing, you go after
A business that is business to business or B2B is more likely to be acquired by a corporate buyer. Reaching these buyers is far more difficult and far more labor intensive. Mailings are no longer effective, email does not work, business for sale Web Sites are not visited. The method that works is the old fashioned dialing for dollars approach. Reaching the targeted decision maker takes an average of ten phone dials.
When you do get through, you have about 30 seconds to articulate the opportunity and establish your credibility. The M&A firm's objective is to interest multiple strategic corporate buyers and get a competition going. That can result in some very lucrative exits for their business owner clients.
Another common objection that we hear from business owners about the monthly fee is, "We want you to have skin in the game. If you get the business sold and we win then you win." At the lower end of the middle market the monthly fees are normally in the $5,000 to $10,000 per month range. The M&A firm will be performing $15,000 to $25,000 of work if it were to bill the client hourly. The M&A firm, on this basis, usually has as much skin in the game as the business owner incurring the monthly fee. If the M&A firm does not complete the sale, they lose money on the engagement.
Conclusions The deciding factor is in cost benefit. An M&A firm is going to cost a lot of money and you are going to be paying either an up front or monthly fees without a guarantee of success. If your business is smaller and is a commodity type business or Main Street business where the target buyer is an individual, an M&A firm will not add much value and is not worth the fee.
If your business is larger, complex, unusual, strategic, with a high component of intellectual property or technology and subject to a broad
With the country’s immigrant population booming, the need for bilingual jobs continues to increase. But how do you single yourself out from the crowd and effectively market your bilingual skills? An average of 880,000 documented people immigrate to the United States each year, and corporations are struggling to meet the needs of a progressively multi-lingual population. Bilingual personnel are more valuable than ever; the flip s
Another common objection that we hear from business owners about the monthly fee is, "We want you to have skin in the game. If you get the business sold and we win then you win." At the lower end of the middle market the monthly fees are normally in the $5,000 to $10,000 per month range. The M&A firm will be performing $15,000 to $25,000 of work if it were to bill the client hourly. The M&A firm, on this basis, usually has as much skin in the game as the business owner incurring the monthly fee. If the M&A firm does not complete the sale, they lose money on the engagement.
Conclusions The deciding factor is in cost benefit. An M&A firm is going to cost a lot of money and you are going to be paying either an up front or monthly fees without a guarantee of success. If your business is smaller and is a commodity type business or Main Street business where the target buyer is an individual, an M&A firm will not add much value and is not worth the fee.
If your business is larger, complex, unusual, strategic, with a high component of intellectual property or technology and subject to a broad
The demand for truckers is very high, and it is relatively easy for most qualified truckers to find steady work. Nonetheless, some researchers estimate that as many of 15% of drivers, even those with extensive experience, get disqualified when applying for a trucking position. Why are so many truckers getting turned away if the need for trucker is so high? It all has to do with being organized.The key to landing a truc
Conclusions The deciding factor is in cost benefit. An M&A firm is going to cost a lot of money and you are going to be paying either an up front or monthly fees without a guarantee of success. If your business is smaller and is a commodity type business or Main Street business where the target buyer is an individual, an M&A firm will not add much value and is not worth the fee.
If your business is larger, complex, unusual, strategic, with a high component of intellectual property or technology and subject to a broad interpretation of value in the marketplace, an M&A firm is the right choice. In the final analysis, is a swing of 20% in your company's selling price worth $5,000 per month for 8 months?
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.otheradded.com/article/16142/otheradded-Business-Broker-Versus-Merger-and-Acquisition-Advisor--The-Monthly-Fee-Objection.html">Business Broker Versus Merger and Acquisition Advisor - The Monthly Fee Objection</a>
BB link (for phorums):
[url=http://www.otheradded.com/article/16142/otheradded-Business-Broker-Versus-Merger-and-Acquisition-Advisor--The-Monthly-Fee-Objection.html]Business Broker Versus Merger and Acquisition Advisor - The Monthly Fee Objection[/url]
Related Articles:
Bookmark it:
|