Competitive Market, Liquidating Event, & Maximum After-Tax Value
Mission Statement
Using Honesty, Character, Integrity, and Expertise, Create a Competitive Market that Produces a Liquidating Event, allowing Our Clients to Receive Maximum After-Tax Value for the Sale of Their Business.
Competitive Market
Competition drives value. Our goal is to create a sales process that produces multiple qualified & motivated buyers for every listing we accept. The more qualified buyers, the more leverage and negotiating power our seller clients have in the process. A few of the marketing methods we use are as follows:
· Distribution to Buyer Database
· Online Marketing to over 100 sites
· Soliciting other M&A and professional services (accounting/legal/financial planners) offices
· Social Media, Website, and Pay-Per-Click Campaigns
· Targeted Direct Mailing
· Targeted Telemarketing
Liquidating Event
While the owner’s goal during a business exit is often to maximize the amount of cash he or she receives at closing, it’s often not possible or not financially viable to receive all of the consideration at closing, creating the need to manage other consideration as part of the business sale. This other consideration can take the following forms:
Seller Note/Seller Financing (either on full standby subject to SBA loan repayment or not)
Installment Sale
Earn-Out (Consideration contingent upon the occurrence of a future event)
Employment/Consulting Agreements
Lease Payments
Non-Compete Provisions
Managing these different provisions and structuring the various elements of a business sale transaction in a way that maximizes value to our clients are a couple of the many ways Adena Business Advisors puts cash in our client’s pockets during a business sale.
Maximum After-Tax Value
While the liquidating event is certainly important, proper tax planning during the negotiation and construction of any Letters of Intent and Purchase Agreements is necessary to ensure that our clients maximize the amount they “take home” from any sale.
As there is often an inherent conflict between business buyers and sellers as to how the deal is to be structured (asset sale vs stock sale) and how the tax allocation should occur (tangible assets vs. intangible assets/goodwill), our process attempts to proactively control these negotiations, ensuring the best after-tax treatment for our clients.