"We sell businesses through an effective and confidential
process to maximize owners’ total return."

"What The Crest Group can do for you..."

Business Description and Cash Flow    
In our business, cash is KING. Our approach to committed buyers is to provide you with a detailed 15 page description of the seller's business plus a detailed three year summary of the company's income statement and cash flow. This confidential package allows you to  quickly assess the viability of the company's business and cash flow to meet your requirements. It is sent to you once we have a confidentiality agreement and financial statement from you. All of our documents are delivered by e-mail. We make your search very efficient with our documents, analysis and personal discussions.

Financing
We can assist you in obtaining financing through the structure of the proposed price and terms and our  information package, through local banking contacts we have, and through national financial contacts developed by BBN. We work with sellers to insure that they understand the need to provide some seller financing to get the best price for their company. As you may know, banks are reluctant to finance the purchase of businesses based upon often minimal profits that small companies show on financial statements.  Also, a bank cannot come in to manage a business if foreclosure becomes necessary. But with a combination  of some seller financing ("keeping some skin in the game"), our financing contacts and information package, plus your background and financing contacts, we are able to facilitate a successful transaction.

Confidentiality
For The Crest Group, the sale of an ongoing business is very confidential for both the seller and the prospective buyer.  All inquiries are held in strict confidence. We have to insure that prospective buyers have the background to buy and manage a company that includes seller financing, and that they have the financial capability to attract the other financing they need. After we provide an initial one page non-confidential summary of a selling company to a prospective buyer, a confidentiality agreement and financial statement is required from buyers in order for us to send the 15 page description of  the company and detailed income statement and cash flow.

Our Selling Process

The process The Crest Group uses to sell a business typically includes the following:

1. We develop with the seller a through confidential description of the business and a detailed income statement and cash flow analysis for the last three years, and often a projection for the current year. This work also includes developing a one page, non-confidential summary which is posted on various web sites, sent to selected buyers who are on our mailing list, and sent to other brokers who we know could be interested in this  business. Other advertising of this opportunity is also utilized.

2. Upon receipt of an inquiry, The Crest Group talks to the prospective buyer, insures they have an understanding of the business, and receives their confidentiality agreement and financial statement.  We then notify the seller about the prospective buyer and get their approval to send confidential information to them. Typically there are telephone discussions with the prospective buyer and The Crest Group prior to face to face meetings with the seller.

3. Meetings with  the seller are scheduled as appropriate and the seller provides additional information as requested. The Crest Group will continue to provide information and advice during this  process.

4. An interested buyer will make an Offer to Purchase, or propose a Letter of Intent, which is negotiated. Upon acceptance, the buyer and seller proceed to due diligence and a Purchase Contract.  The Crest Group will continue to be involved in this process to assist the seller in completing the transaction.     

Ten Tips for First Time Buyers

1. Buy a business you like in an industry in which you have an understanding.  Cash flow is of prime importance, and you must have an excellent grounding in the "key factors for success" in the industry you are entering. Understand who the suppliers to the business are as well as who your customers will be.  Do you understand the seller and the employees relationship? What are the trends in the industry and how will they affect this business? Will you be proud to own the business?  

2. The Crest Group advises its first time buyer clients to have a good understanding of the "fit" of the business they are considering with their background. What kind of person are you, how is your background suited to this business and industry, what do you like to do, what have you been successful in doing?   Examine some industries and companies for sale on various web sites to understand the nature of the business and market.

3. Be prepared to examine the financial information that private companies have.  Do not expect extensive analysis to have been done as many owners "know their business from their experience".  The Crest Group will be able to provide you with an initial analysis based upon our extensive business background. But you are ultimately responsible for understanding the financial and business structure of the business.

4. Owners are usually willing to finance part of the sale. Up to one quarter of the price is normal and assumption of some company payables may also be available to help finance the purchase. But the buyer must be able to  come up with the rest either out of their own funds or from borrowing. Lenders will require collateral from  the business and often personally.  

5. You will need to have other advisors to help you decide on this business opportunity. At a minimum you should have a business lawyer and an accountant with whom you can discuss the details of your evaluation and help you develop an Offer to Purchase.

6. Once you have met with the owner a few times, visited the facility, and discussed your evaluation of the business with your advisors and The Crest Group, it is customary to  make a Offer to Purchase. This begins a due diligence process in which you will get any detailed questions answered that arise. The Offer to Purchase or Letter of Intent does not commit you to the purchase of the business, but it the last step  prior to completing a Purchase Contract. 

7. Keep focused on how you will  make the business a success for you. Keep your eye on the key factors for success in the business; find out what they are, and how they interact. Can you manage them successfully?  As you go through negotiations, always use this simple formula: Cash flow minus annual payments to the seller and/or other financial institution is the payout  for you and your family.  If at any time during the negotiations this formula does not result in sufficient money, stop and renegotiate.

8. Once the deal is made, try to close as quickly as possible. Once an Offer to Purchase is agreed to owners want to help you complete the transaction and you do not want news of the sale to leak out to employees, suppliers and clients before it is appropriate.

9. Be sure to understand the elements that make buying this business a successful strategy for you. Understand and take advantage of the fact that you are buying a business with a cash flow and a history, and how this will be an advantage for you. You should have trained employees in place, good relations with suppliers and a good  credit history, established customers and referral business, a facility that has the proper licenses and permits, an owner who is willing to help finance your purchase and stay around to give you some training and personal introductions to his key customers and suppliers.

10. Cash is KING. Be sure you have analyzed the working capital needs of the company and that you have enough financing to both buy the business and finance its growth.  

"Buyers come to us because of our complete information package, knowledge of the companies we sell and our understanding of how to manage the process".

Interested in a business we have listed on our website?  Have questions? Get started today, contact us...