Actively Seeking Acquisitions

Looking to acquire companies with revenues up to $50 million including Manufacturing, Mechanical Contracting, Trucking, Retail, Wholesale/Distribution.

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Additional Information For Sellers

Making the Decision to Sell

If you are planning on selling a division, subsidiary or complete business due to retirement of other factors.

In the midst of a tough global economy you may have a division or subsidiary that is taking you in a different direction to the rest of your business so in order to streamline your companies operations it is necessary to sell.

But selling a piece of your company can be a smart even businesssaving move that may keep you well capitalized enough to ride out a rough patch. Timing and preparation are essential when selling a unit. Before putting it on the block, be sure you understand the unit thoroughly, including its strengths and weaknesses.

Selling a Subsidiary

Whether the unit you’re considering selling is a division of your company or a subsidiary can make a significant difference in your selling strategy. For example, standalone subsidiaries are typically easier to sell than divisions. The unit is already a separate legal entity and can generally be sold as a separate business.

Divesting a Division

Selling a division can be a somewhat more difficult endeavor than sloughing off a subsidiary. You must essentially “carve out” the division deciding, among other things, which employees, property, product lines, customer contracts and sales territories are officially up for sale.

Planning your business exit strategy

If you have owned your business for a while at some point in time you will need to think about how to exit your business!

There are a number of options depending on the size and type of business you have and your involvement.

Sale of Your Business

The most common exit strategy is to sell your business to someone else or another company, the most difficult part of the process of selling a business is deciding what the value of the business is. With a realistic value you have more chance of making a sale and with an unrealistic value you will most likely create a lot of headache and frustration for your self, and if the business is shopped heavily to potential buyers you will also run the risk of loosing key staff in the process and creating more headaches.

At NSW Business we are looking for businesses to purchase and you are not dealing with brokers and middle men that create additional cost and can prolong the process, we can value the business and keep all discussions confidential and have an offer back to you promptly and without key employees of customers knowing that the business maybe for sale.

Mergers

A merger is when 2 companies get together and a value is done for each and they combine to form one larger company. This is ofen what happens with larger companies and is less common on smaller companies.

Liquidation of Assets

If your debt level is small then you can achieve liquidity by shutting down the business and selling the assets you have. You will need to find buyers that can find value in the assets you have available. In this method you are getting the lowest price for the business as there is no value for the ongoing cash flow created by the business.

Summary

These are the most common methods there are others depending on the business type and size that you have but in any case it is wise to start planning an exit strategy sooner rather than later.

With the current baby boomer population now reaching retirement age and in the foreseeable future the number of businesses and business owners that are planning an exit strategy is greater than the number of buyers available in the market so this supply and demand issue will also have an impact on the value of your business.