Presented by: Jene’ Popper-Hong

While all entrepreneurs share the passion necessary to build a business, few share the knowledge or the ability to handle the transition during the exit.  And while your business might seem attractive from a top-line revenue number, there are many details that need to be addressed to ensure your company is legally and financially structured to enter into negotiations.

Jene’ Popper-Hong is a Principle at Business Transition Specialist, the only full-lifecycle merger & acquisition firm in the region helping buy, grow and sell businesses.  Below are the top 10 questions (and answers) she gets when working with clients.

Q:           How do buyers discover and get access to most attractive businesses to buy?

A:            Most successful  buyers conduct an outbound search using a retained intermediary that business owners will trust to screen buyers and only disclose sensitive information when appropriate

Q:           What does it cost to conduct a proactive search to find and acquire a business?

A:            The cost of an outbound search depends on the campaign scope and tactics used to reach the target business owner.

Q:           Why work with an intermediary to help buy or sell a business?

A:            The best intermediaries have 1) an existing network of prospective buyers and sellers, 2) educate and manage the valuation, presentation and transaction processes 3) do the work well that most buyers and sellers don’t have the time to do and as they manage their current responsibilities 4) ensure sensitive information is only disclosed when protected and to qualified recipients and 5) negotiate dispassionately to mitigate emotional responses that can destroy a buyer-seller relationship.

Q:           What are the top three reasons why entrepreneurs fail?

A:            1) not enough capital 2) lack of right team / skill (internally and externally) 3) willingness and ability to plan, manage and adapt to go distance

Q:           What are the key things investors examine when approached for money?

A:            Investors are selective in requiring 1) a well-documented, compelling plan 2) a mature team with the right skills, energy, temperament and commitment 3) skin in the game (to demonstrate that those asking for money would be hurt by losing the investor’s capital)

Q:           What can you do to improve your chance of obtaining bank financing?

A:            1) clean up the books and manage clean financials 2) package the lending opportunity with a complete and compelling story 3) shop the opportunity, using an intermediary who already knows which institutions might be interested  (remember: lenders have their own investment criteria and current portfolios to manage)

Q:           Why do most sellers of business never successfully complete a sale?

A:            They are uneducated to the way businesses are valued, what buyers will pay and what lenders will finance.

Q:           What’s the most difficult part of buying a business (and first place buyers fail)?

A:            Finding an attractive business for sale!  Most attractive business are sold to committed, proactive buyers who’ve gone hunting for yet undiscovered opportunities.

Q:           What percentage of economic buyers of businesses get 100% bank financing to acquire a business?

A:            Generally 0%!  Anyone entrusted a buyer with their money will require that same buyer have “skin in the game”, a vested interest in making sure the business succeeds.

Q:           Which buyer types are generally willing to pay more when acquiring a business, strategic or economic (and why)?

A:            Strategic buyers are generally willing to pay more since in the acquisition they will realize greater or new sources of cash flow.

Jene’ Popper Hong brings over 20 years of business strategy, mergers & acquisitions and problem solving to her role at Business Transition Specialists LLC (BTS). Jene’ is a seasoned executive leader, operator and deal maker having held multiple CFO roles in growth and turnaround situations. Her core skills focus on helping small and medium sized businesses raise capital and grow both organically and via acquisition. Jene’ collaborates with entrepreneurs and business owners to help define and execute vision and goals while navigating and overcoming financial and operational challenges.

Business Transition Specialists (BTS) is the only full-lifecycle merger & acquisition firm in the region helping buy, grow and sell businesses. We provide our clients seasoned trusted advisors, expert guidance and critical resources throughout the ownership lifecycle from initial entry to exit, selling all or part of a business in a planned and managed exit strategy.

You can visit the web site at buygrowsell.com