Our Value Goes Beyond Merely Searching For A Deal
The Vant Group (TVG) provides buyer-side representation on business transfers up to $100 Million per deal. We are M&A trained with professional knowledge of Investment Banking. You can count on our proven Buy-side process that will take you confidently from start to close.
Buying a business can be a fast-track to growth and profitability when done well—or a risky venture if proper due-diligence is ignored. In fact, data shows that 50% of newly purchased businesses fail within the first five years—while the other half go on to thrive and grow.
Buyer Representation is a success fee based search for a business acquisition target whose parameters are set by the buying company. Some of the services that are included:
Business Qualifying:
- Work with buyers to help target the type of businesses that best fit their strengths
- Determine a list of acquisition criteria based on input from buyer
- Compare and contrast different industry types
Business Search:
- Search all relevant websites for businesses available for sale
- Contact all brokerage firms in the area to identify businesses for sale
Advanced Buyer Search:
- Generate a list of companies using Dun & Bradstreet databases and from the buyer that fit the buyer’s criteria
- Send out a mailer to the list of companies that The Vant Group and buyer have identified
- Provide a list of potential targets to buyer
- Follow up with personal phone calls to the identified companies by The Vant Group staff
- Follow up on those companies with an interest and make a site visit to ensure there is a match. (if applicable)
Business Valuation:
Perform a business valuation on all opportunities that have been identified as potential business acquisition targets. Our business valuations use the standard financial modeling formulas. More importantly, TVG is able to offer more of a “real life” valuation based on its vast experience of acting as an agent in the buy / sell process, as well as through the buying / selling of its own staple of businesses owned by TVG.
Preparation of Initial Offers on an Identified Business Acquisition Target:
Upon selection of a suitable business acquisition target, we will help prepare preliminary offers on the business. TVG is able to use its experience from over 500 deals to formulate the best offer for the buyer, while factoring the seller’s needs to ensure a deal can be consummated. This is most likely the highest value proposition of TVG. A successful transaction is not only measured by the sale price, but more importantly by the deal structure. TVG can save buyers thousands of dollars by creating the most beneficial offer in terms of financing, deal structure, tax implications, etc.
Accounting Due Diligence:
Though TVG is not a CPA firm, we have over 500 deals of experience which help us identify the primary due diligence points to focus on before bringing in a CPA. This enables a buyer to save the time and money associated with going through a full due diligence exercise, especially if the deal does not materialize. The due diligence assistance that TVG performs will save a buyer thousands of dollars before the financials are presented to a CPA.
Negotiations:
Throughout the sale process, there will be ongoing negotiations that may not be covered in the preliminary offer such as: training, assumption of liabilities, office leases, payment terms, etc. This is the most difficult benefit of TVG services to measure, but certainly one of its most valuable. An attorney’s aid to a buyer cannot be replaced, but by using TVG to aid the process, a buyer can rely on us and not worry about attorney’s fees for the multiple issues that will arise throughout the months of the buying process.
Introduction to Professional Services for Due Diligence
Once a deal is close to being consummated, TVG will introduce the buyer to professional services firms that are experts in the area of business transactions which are also cost effective. The areas of services include, but are not limited to:
- CPA
- Attorney
- Banker
- Insurance
- Human Resources
Bank Financing:
TVG has assisted with over 300 successful business fundings. As part of this service, we will take a buyer from the initial bank application to the ultimate closing and funding of the transaction. Obtaining bank financing can be more difficult than the actual business buying process itself.
Post Closing:
Once a business is purchased, a buyer at times can feel lost during the first few months of business ownership. TVG continues to work with buyers even after the business is purchased to act as a pseudo “board of director” on issues that will inevitably arise for issues such as, but not limited to:
- Employees
- Banking
- Financials
- Vendor Issues
In addition, TVG will connect buyers with a cost savings company that will aid them on a success fee schedule to analyze all areas of business spend and propose costs savings solutions that could ultimately increase the net income of the business. Work with buyers throughout their business ownership to begin positioning the business for the ultimate exit strategy. Companies that prepare for sale early on in the process ultimately receive a much higher sale price.
Conclusion:
In summary, by hiring TVG to aid you with your buyer-directed search, we act as an ongoing / as needed resource to cover all aspects of the process, not only until the deal is consummated but well beyond that point. Our fee is earned from the time the first acquisition candidate is identified, through the negotiating process to the time the transaction is consummated and beyond. At TVG, we have not only assisted with over 500 transactions as an agent but have also bought and sold 8 companies that we have owned. We have been in the shoes of both buyers and sellers and therefore offer insight that cannot be afforded to a buyer who acts on his own.
What are the Fees?
- An initial retainer will be required to prepare a buyer directed search package
- A success fee commission based on the sales price of the business