Here are a few of the questions we are frequently asked by business sellers.
Selling a Business
How is Merfeld & Schine different from other business brokers and business intermediaries?
We focus on arranging sales of smaller companies to private equity groups. While the private equity M&A deals that make headlines tend to have sell prices in the hundreds of millions of dollars, there are also a lot of private equity deals in the $2 million to $20 million range. These deals often take the form of add-ons (or bolt-ons) to existing private equity platform companies. Our expertise is in packaging smaller firms for private equity acquisition and in knowing which groups are buying which kinds of companies.
Are you business brokers, investment bankers, or mergers & acquisitions specialists
Well, I guess all of the above. In general the difference between business brokers and investment bankers is the size of the deals they arrange. Most of our buy/sell deals are in the range where either label fits. But labels aren't important. What we do as far as servicing business sellers and business buyers is important. Our website offers a pretty good overview of our range of M&A services.
Our company is in a different part of the country from your offices. Can you represent us for sale?
We focus on New England based businesses (MA, CT, NH, RI, VT, ME). However, we represent companies for sale throughout the United States that we believe to be good acquisitions candidates for our private equity buyers. Within New England, we represent other types of businesses for sale as well.
How can you sell my company and still maintain my confidentiality?
Sellers are justifiably very concerned about maintaining confidentiality. No good can come from customers or employees finding out about a pending sale before the owner wants them to find out.
We do not reveal the name or identifying characteristics of companies we represent for sale until an agreement of confidentiality (sometimes called a Non-Disclosure Agreement or NDA) is signed. Even with a signed confidentiality agreement we stage the release of information based on the level of seriousness and commitment demonstrated by the prospective buyer.
How long does it take you to sell a business?
This is a very tough one to answer. We have sold companies in as little as a few weeks. In other cases, it can take as long as a year or more. It depends on the business climate, the industry, the seller's own time frame, and other factors that are not always predictable.
Can you really enhance the value of my company?
Yes we can if we get started at least six months before you want to put your business on the market. There are a number of relatively easy improvements we can help you implement that will make your company more attractive to prospective buyers. Many of these changes will also shorten the time it takes to sell your company. For more information on enhancing the vale andmarketability of your company, click here.
How do your charge for business brokerage services?
When representing a company for sale, in most instances we charge only a performance based commission. That is, we get paid upon closing of a sale.
If you are contemplating selling a company or have related M&A needs, please feel free to contact us for a free consultation without obligations or sales pressure. Fill out this simple form or call us (401-751-3320)