Heartland Business Exchange LLC

HBEkc
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BROKERAGE SERVICES

Privately held businesses are a very illiquid asset and often the largest asset in the business owner's portfolio. 

 

Exchange shortsighted transaction oriented representation for farsighted relationship oriented representation by someone who cares about financial security for you and your family and who understands that the transfer in ownership and control of your business should be to someone that will continue to provide high quality products and/or services and will continue to maintain important relationships with employees, clients and vendors.

 

Value Proposition: If you think that an ideal outcome involves simply the dollars exchanged as consideration, you may regret taking this journey alone or commencing the journey too late to optimize the outcome.  HBEkc can not only optimize the financial consideration, with adequate time we can address a myriad of other critical transaction issues...finding the right cultural fit, transaction structure, tax and estate planning and risk transfer often tip the balance one way or the other.

 

The sale of the business either internally to a family member or a key employee or externally to an outside buyer will follow the same process, but will probably differ in emotion, risk transfer and cash at closing. Proper planning, analysis and execution can greatly reduce the stress and increase the after tax benefits. This process should take into consideration, quantitative measures that can be found in financial statements, realistic forecasts, thorough due diligence and qualitative issues such as culture.

An orderly sale process has a logical pattern of events.

Planning
  • Information Gathering
  • Preliminary Due Diligence
  • Clean up Financial Statements
  • Valuation
  • Comparison of Expectations versus Valuation
  • Delay to Build Value to Close the Gap or
  • Reset Expectations
  • Evaluate Internal versus External Sale Options
  • Secure that which is Valuable (Key Employees, Patents,
  • Copyrights, Leases, etc)
  • Establish Timing
Marketing Plan and Materials (1-3 months)
  • Confidential Business Report
  • Executive Summary
  • Marketing Letter
  • Confidentiality Agreement
  • Marketing Strategy
  • Target List of Buyers
Marketing (3-24 months)
  • Distribution of Marketing Materials
  • Information Exchange
  • Buyer Qualification
  • Buyer Visits
Letter of Intent, Negotiation, Acceptance (1-3 months)
  • Non-Binding Offer
  • Negotiate Basic Price and Structure
  • Acceptance of Letter Of Intent
Due Diligence and Financing (1-3 months)
  • Develop Financing (Internal Sale)
  • Detailed review of financial statements, legal issues, client relationships, key employees, facility review, equipment, etc.
  • Finalize Financing by Buyer
  • Final Offer

Final Document Preparation (1 to 3 months)

  • Purchase Agreement
  • Bill of Sale
  • Promissory Note(s)
  • Closing
Transition and Earn-out (1-5 years)
 

Heartland Business Exchange, LLC

12949 Granada Lane
Leawood, KS 66209
Telephone: 913-681-9162
Cell Phone: 913-579-6270
Fax: 913-685-4885

 

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