Sell My Business Archives

Sun Acquisitions Announces the Sale of a Document Destruction & Shredding Company

June 16, 2021 by Ellen Park

Acquisition of South Bay Document Destruction:

Sun Acquisitions is pleased to announce the successful acquisition of South Bay Document Destruction Inc., located in Gardena, California.

South Bay Document Destruction was founded in 1978 by the Barile Family. The company provides onsite, offsite and drop-off document destruction services to a large and loyal commercial customer base. They experience little customer turnover and have extremely low customer concentration, with no customer representing over 6% of revenue. They specialize in developing custom, confidential destruction programs for each customer. The company is fully equipped with an experienced team to run day to day operations and state of the art shredding technology to handle any size job needed.

There are major growth opportunities for the new ownership to continue to grow the business. These opportunities include growing the sales team & integrating the business into the existing operations.

Sun Acquisitions ran a formal Limited Auction Process with a group of strategic buyers for the business. The team at Sun Acquisitions generated multiple offers to acquire the company. South Bay Document Destruction was purchased by a strategic acquirer, Access Corp.

Matt Brunstrum, Advisor, led the transaction and Joseph Beer, VP of Operations, facilitated the closing coordination for the client. After completing the sale of the company, Matt stated, “We enjoyed working with David & Mark Barile to assist them in selling their 2nd generation family business to Access, a Strategic Acquirer within the Document Destruction Industry. From the first day on the market to a successful close, our process time was less than 5 months to get this deal done.”

Sun Acquisitions Announces the Sale of a Machining and Fabrication Shop

January 27, 2021 by Ellen Park

Sun Acquisitions is pleased to announce the successful acquisition of Keller Machine & Welding, located in Valparaiso, Indiana.

Keller Machine & Welding was founded in the early 1990s. Since inception, the company offers custom machining, custom fabrication and millwright services to its commercial customer base. They are well-equipped with the machining and fabrication equipment, as well as, machinery needed to re-build a variety of equipment to support any need. They have developed strong relationships with their customers, which resulted in 85% of their sales to come from repeat customers. The company is run by the experienced team of employees and operates out of a professional and custom constructed 21,000 sq. ft. machine shop.

There are major growth opportunities for the new ownership to continue to grow the business. These opportunities include: establishing a sales and marketing strategy, diversifying the service offerings to current customers, and expand the current geographical market served.

Throughout the confidential marketing of the business, Sun Acquisitions generated over 70 interested buyers, which led to 2 final offers to purchase Keller Machine & Welding from its previous ownership. The business was acquired by a strategic buyer with existing operations in Michigan.

Matt Brunstrum, Advisor, led the transaction and Joseph Beer, VP of Operations, facilitated the closing coordination for the client. After completing the sale of the company, Matt stated, “Dan Keller built a terrific business over his career with a very loyal employee and customer base. We are happy that we were able to assist Dan in the sale of Keller Machine & Welding which has allowed him to move onto the next phase of his life in retirement.”

Sun Acquisitions Announces the Sale of a Commercial IT Services Provider

December 16, 2020 by Ellen Park

Sun Acquisitions is pleased to announce the sale of an experienced commercial IT services provider, based in the Greater Chicago Area.

The company, founded 25 years ago, provides a full range of IT services and have implemented recurring revenue streams from a large majority of their client base, which include law firms, accounting firms, and professional service businesses. In addition, they are staffed with experienced and knowledgeable employees with the ability to meet any clients’ IT needs.

There are many opportunities present for the new ownership to continue the growth of this company including: increasing digital marketing efforts, expanding geographically to serve additional markets, and growing the business development team.

This company was sold in record time for the full asking price. Through marketing the business for sale, Sun Acquisitions generated over 100 inquires on the business within just a couple months, which led to multiple final offers. The business was acquired by a company currently in the industry conducting a strategic growth acquisition.

Tony Schiappa was the lead advisor and managed all aspects of this client engagement. After the sale of this business, Tony stated, “We are thrilled to provide our client with a quick and valuable sale, even during the tough times of COVID. The M&A market, despite contrary beliefs, has been incredibly active and we have cultivated a large network of buyers who are interested in acquiring firms in the IT Services Industry.” Tony is the Chief Business Development Officer and Senior Advisor for Sun Acquisitions.

Are You Financially Ready?

September 16, 2020 by Sun Acquisitions

Are you financially ready to sell your business? Getting a business to a place where you can present it to potential buyers can be an exhaustive process. There is legal preparation before selling to be handled, determining the right time to sell, and reading up on every aspect of things owners should know prior to an acquisition. The financials of a business are the hinge upon which almost every other detail of the transaction rests upon. Because of their prominence, it is imperative that you and the business are both financially ready. Here are five key steps to take to assist with financial preparation.

1. Have the business professionally valued

How do you know what your business is worth? You might have an idea of what you think the business should be worth, however, the best way to get an accurate estimate is to have the entire operation professionally valued. A business valuation will give you a realistic and objective proposition of the worth of your company. This valuation can then be used to come up with an offer price as well as figure out the final amount that you would be ready to negotiate with buyers.

A valuation is an excellent tool that reveals your business’ current market performance, position, strengths, weaknesses, and financial situation. As a qualified business broker, Sun Acquisitions can perform your business valuation to give you the data you need as you financially prepare the business for a sale.

2. Create a buyer strategy with an experienced business broker

Leading business brokers like Sun Acquisitions can help you put together a list of business buyers. Advisors with sufficient experience have connections and links with people who might be interested in purchasing your business. Access to such an extended network is one of the key reasons to bring an M&A advisor on board when you’re preparing for a sale.

That’s not all, but when you select the right advisor they can also help you create an all-star team to facilitate the purchase of your business. Get recommendations for reputable legal, business, and tax experts. Don’t try to figure out things by yourself when a business broker can simplify life for you.

3. Develop a tax plan with assistance from a tax advisor

The sale of a business precipitates a change in your financial status which has a direct bearing on your taxes. As part of your financial preparation, it is recommended that you sit down with a tax advisor to establish a tax strategy to handle the different tax situations that will present themselves post-sale.

For example, if the expected gains from the sale are long-term you will be liable to pay federal tax rates that can be 23.8% or higher. In addition, local state income taxes on the gain may also apply. In the event of your death, any value you may have acquired from the sale of the business will be taxed. Your heirs should expect federal estate tax rates of 40% or more. It’s also worth noting that there are other states that have inheritance tax that your beneficiaries will also have to pay.

4. Remove non-business related items from your financials

Part of the process of getting your financials in order includes removing all non-business related financial items such as salaries for extended non-working family members and insurance for them from your operations. These items have no direct bearing on the business and should be eliminated from the financial records that will be presented to buyers. To be removed as well are expense accounts and discretionary expenses. How do you know if it’s an element you should probably leave out? If it’s not directly related to the business and the buyer derives no profit from it then it shouldn’t be in your financials.

5. Have an accountant review your financial statements

Your financial statements are of great interest to any potential buyer of the business. For this reason, they should preferably be reviewed, and in some instances, audited statements. There are three types of financial reviews that can be conducted. Let’s look at each one to understand which is better suited when preparing to sell a business.

Compilation: as the name implies, a compilation is simply a preparation of financial statements compiled into one document. This task is carried out by a certified public accountant. The accountant compiles financial statements provided by the seller but gives no professional opinion about the information provided. This is the least formal assessment and is great for sellers who simply want to evaluate how the company is doing so they can drive internal goals in the right direction.

Review: the difference between a review and a compilation lies mostly in the fact that the accountant offers an in-depth analysis of the financial statements they have compiled. The accountant provides a written opinion regarding the financial status of the business including any problem areas. This review is the accountant saying that they did not come across any serious financial issues. The review gives ‘limited assurance’ only.

Audit: audits are the most formal type of assessment that can be carried out on a business’s financial statements. This is a critical look at the company’s management. The CPA does not only look at the information provided by the seller about the business but also relies on information from an independent inquiry to help formulate a professional judgment. For buyers and sellers, such an audit provides the highest assurance level that all is in order regarding the business’ financials.

Get financial preparation help from qualified advisors

Business brokers are well aware of the fact that when selling a business you have to be both emotionally ready and financially ready. This comes through in the counsel that we give would-be business sellers. Would you like to discuss how to prepare financially for an acquisition? Our team of M&A advisors would be happy to consult with you. Get in touch with us today.

Disclaimer: Any information provided in this blog is not intended to replace legal, financial, or taxation advice given by qualified professionals.

Sell NOW – The Crystal Ball Is Pretty Clear

August 24, 2020 by Sun Acquisitions

We are living through unprecedented times with a global pandemic and a recession on our hands. Many business owners have repeatedly asked themselves, “Do I stay and grow the business, or do I sell and go?” While we can give sound advice as seasoned business brokers, we cannot make the final decision for you. There are numerous reasons you may want to consider selling now. We’re going to explore each of these reasons to help you discern and establish your exit plan.

1. Sell NOW if you’re above 60 years of age

Baby boomers constitute a fair share of small business owners in the United States. To date, boomers have experienced the most recessions of any age group. Between 1945 and 2020, there have been 13 recessions in total. According to Barlow Research Associates, 40% of small business owners today are aged 65 years and above.

The long and short is that non-essential businesses need to assess the situation and ask the tough questions such as ‘Can the business rebound? Can funding be secured to resuscitate the company?’ Essential businesses have been somewhat lucky and some have even enjoyed a markup in their valuation. Regardless, business owners in the baby boomer age range should start thinking of exiting now.

If you’re running a business that has since closed doors, it’s not wise to attempt to hold onto the business in the hopes that you can dip into your personal assets to rebuild. If you’re fortunate enough to be running a business that’s flourished during these tough times, selling now is still a great idea because of the favorable valuation the business will receive.

2. Sell NOW and recoup your current business valuation

The future is uncertain. No one is sure when the current pandemic is going to end. The economy is already entering the first stages of a recession. And over 100,000 small businesses have closed doors forever. Don’t let all your hard work go to waste. Selling now may help you salvage something from your years of hard work.

A study published in the Q1 2020 Market Pulse Report reveals that an overwhelming 81% of advisors project business valuations to decline as the year progresses. As an SME owner, it’s only normal to believe that your business is worth a lot. However, this may not always be the case. The best way to get a realistic figure of the type of offers you can expect is to get the business professionally valued by a business broker. This business valuation will give you a starting place when negotiating with investors.

3. Sell NOW and get a head start with investors

The Great Recession killed off 170,000 businesses between 2008 and 2010. Within less than a six month period, we’ve seen more than 100,000 businesses shut down. What we’re witnessing is more brutal and catastrophic than what people ever imagined in 2008. As people begin to come to terms with what’s really going on there is going to be a flood of businesses-for-sale as companies go under the hammer.

By making a conscious decision to sell now, you can get a head start with investors and walk away with a potentially better offer than trying to sell in a crowded market. Think of it this way: If you’re affected, that means your competition is affected. If you’re thinking of selling, your competition is also probably considering selling their business. The more choices investors have, the higher the chance that you will be forced to lower the price of your business.

4. Sell NOW before taxes become more complex

The coronavirus pandemic has wrecked the economy of this country and the economies of countries the world over. The government rolled out massive relief packages which have increased national debt. With millions of jobs lost over the duration of the pandemic and hefty bailouts, government coffers are running dry. Inevitably the debt will have to be paid back and the vehicle through which this will happen will be – taxes.

With an impending presidential election in November, the stakes are high but more so for small business owners who are likely going to see an increase in the corporate rate, estate taxes, sales taxes, and various business taxes. A storm is coming and one of the best ways to shield how much you can expect to take home is to sell now before November comes along.

5. Sell NOW because investors are having the time of their lives

For investors, recessions are one of the best moments to purchase undervalued companies and assets. Contrary to popular belief that people don’t buy businesses when things are tough, the opposite is true for the monied-up. Investors are on the prowl, hunting for ‘best-buys’. For sellers who already had an exit plan of selling off their company, this may be a blessing in disguise.

How do you link up with such investors? The fastest way is to bring onboard a qualified M&A advisory team that has a rich network of potential buyers. Apart from introducing you to verified buyers, such M&A advisors can handle the negotiations, paperwork, and offer advice. You don’t want to have the deal drag on for months. An experienced business broker can assist in speeding things along.

Discuss your exit plan with experienced business brokers today

Are you worried about your business and need help on how to sell it during these troublesome times? Not sure where to start or how to get your business ready for an acquisition? Contact Sun Acquisitions for business advisory services. We’ve helped thousands of business owners and investors close deals over the years and we are well acquainted with the complex process of selling a business during a recession.

Disclaimer: Any information provided in this blog is not intended to replace legal, financial, or taxation advice given by qualified professionals.

Blog Posts

Breaking Barriers: Overcoming Challenges in Marketing Your Business for Sale

Closing the Deal: Finalizing the Sale of Your Business

Navigating the M&A Landscape: How to Maximize Return On Your Privately Held Business

Choosing the Right Path: Exploring Acquisition Strategies for Small to Mid-sized Enterprises

From Vision to Reality: The Art of Successful Mergers and Acquisitions for Privately Held Businesses