Business Exits and Sales

A company’s exit strategy will include an evaluation of all the assets of the business that can be taken in consideration for sale. There are two type of business sales, assets sale and share sales. For business strategy purposes, due diligence and valuation treatment of gains or losses it is important to organize the required financial records for the business sale. During this process, each tangible and intangible asset is treated as a proportionate value sold as a whole or separately from the company. Any time a company is deciding to sell their business many factors need to be taken into consideration such as market conditions, industry trends, catastrophic risks, legal terms, and the current needs of ownership.

What Can Lions Financial Do for You?

During the business selling process, Lions Financial helps clients with comprehensive consulting and an advise on highlighting the value the company has to offer upon sale. We then advise our clients on what they can do along the path for each step in the business exit process, and address the important issues that need close attention.  To best assist, we apply the Four-step SIRE process to create value for you.

• Survey: We will begin process with a questionnaire to have a general understanding of your business and identify the unique composition of the company. We clarify your business objectives and gain understanding of the current issues that need to be addressed.
• Insight: To have a deep insight of your specific business, we will incorporate industry research, determine product offerings available from many sources, create an assessment and evaluation about your company’s Business Exit plan options.
• Recommendation: Then, we will come up with potential solutions for a Business Exit strategy that is tailored to your company. As an independent firm we can present multiple structures and access different capital providers to help identify best option for sale.
• Execution: We implement the strategy your company would like to execute on based on the options provided and budget available. We help achieve a better result with our professional experience, integration of technology, understanding of your industry, while staying attuned to the compliance and regulatory requirements.

Lions Financial can provide the expertise of an experienced advisory firm that has been the go to for many company sales and purchases, in multiple sectors such as Digital Startups, eCommerce, Real Estate, Automotive and Trucking, and Hospitality. This experience ensures we provide the best possible care for our clients and will continue to do so in the future. Our team makes sure that our clients get the most out of their deals, whether buying or selling, both are performed with the utmost dedication.

 The Key Items to know in Business Exits

When getting ready to sell your business, an exit strategy is a required component, and it may also be executed when an investment or business venture has met its profit objective.

Financial documentation is required in the process of selling a company and will define the current value in the sale price. The areas that need to be focused on are as follows:

• Balance Sheet
  A statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
• Operating expenses
  Those expenditures that a business incurs to engage in activities not directly associated with the production of goods or services.
• Cost of sales analysis

• • Retail: The purchase cost of inventory value of merchandise sold during a stated period plus the cost of direct work.
  • Manufacturing: The production cost or inventory value of goods sold during a stated period.

• Current valuation
  The process of determining the current worth of an asset or a company.
• Revenue

• • Sales from all lines of business
  • Market Valuation
  • Market Share

• Brand Value
  • Market perception of the company
  • The reputation among in the industry and their customers
• Product Segmentation
  • The production line of business
• General term that refers to the product
• Service or related set of products
• Services that serve a particular customer transaction or business need
• Industry Growth Trends
• The growth rate of the industry
• Customer Demographics
• The frequency of company getting repeat business
• The portion of its current business made up of repeat business
• Operational Efficiency
• The number of employees company currently has
• Management style
• Qualifications and experience of the top management
• The amount of accounts business has
• The current relationship between the business and its customers

What’s Next?

Contact Lions Financial to find a better strategy and holistic plan for selling your business. Lions Financial helps business executives, together with their tax and legal advisors, to develop the optimal financial solutions for success. Contact us for an initial consultation for our team to help with your current business need.