FAQS

This can be difficult to determine without an offer in place that outlines a proposed deal structure. There are so many variables that affect how your sale proceeds will be taxed that it can be a mistake to try and guess. (If anyone tells you you’re going to pay 40 percent no matter what, please talk to us.)

We can work through a few scenarios with you — with guidance from our in-house CPA — to give you an idea of what you might expect to pay in taxes. We can also discuss ways to mitigate, defer and/or lower the tax consequences from a sale. Just know that it will be a big part of the negotiation process with a buyer, and one of the reasons sellers hire us to represent them.

It’s not uncommon for business owners to think their business is worth more than it really is to a buyer. There are a number of reasons for this, including the belief that you should be adequately compensated for all of the blood, sweat and tears that you’ve put into your business over the years.
For better or worse, the value of your business will be judged by its financial performance and future viability without you at the helm. There are a number of ways you can bolster the value of your business. We love working with clients for two to three years prior to selling a business so that we can put some measures in place that will get you maximum value and attract strong offers from buyers.

Even if you’re ready to sell yesterday, it’s still beneficial to go through a mock due diligence exercise like our business valuation before jumping out into the marketplace. Our business valuation will help you anticipate what buyers are likely to offer you for your business in terms of a purchase price, as well as what questions they are likely to raise. The more you can prepare yourself and your business for the scrutiny of a buyer, the higher your chances of getting a successful deal closed.

No, our business valuations are not certified. We use a real-world buyer simulation that you can use to help you make decisions about selling your business — now or in the future — and give you some insight into what drives value in your business, and what detracts from it. Our business valuation is not meant to be used in instances that require a certified business appraisal.

If you’ve been told that you need a certified business valuation, we would be happy to recommend a number of specialists that you can choose from. Just shoot us an Email and we’ll send you a list of capable providers.

We recommend that all business owners get a valuation done at least every two years. Your business is your most valuable asset, and there are a whole host of reasons why you should know what it’s worth at all times.

The fee for our Business Value & Sellability Assessment starts at $3,500 (additional charges may apply). Turn-around time is approximately two to three weeks after we receive all of the information requested.

This can be difficult to determine without an offer in place that outlines a proposed deal structure. There are so many variables that affect how your sale proceeds will be taxed that it can be a mistake to try and guess. (If anyone tells you you’re going to pay 40 percent no matter what, please talk to us.)

We can work through a few scenarios with you — with guidance from our in-house CPA — to give you an idea of what you might expect to pay in taxes. We can also discuss ways to mitigate, defer and/or lower the tax consequences from a sale. Just know that it will be a big part of the negotiation process with a buyer, and one of the reasons sellers hire us to represent them.

This is one of the things we discuss with you after completing our valuation process. Most buyers fall into three general categories: entrepreneurial operators, financial buyers like private equity groups, and strategic buyers. We caution business owners to keep an open mind when it comes to buyers. Your “ideal buyer” may be someone you’ve never thought of. We work hard to attract several types of buyers for your business so that you can find the best fit for you and your business.

We are not business brokers. Most business brokers run their firms on a real estate model (commission only), and favor quantity over quality. In other words, they take as many listings as they can and hope that a handful of deals close. Industry statistics show that only 11% to 20% of businesses listed with a business broker ever sell.

Allan Taylor & Company takes a different approach, bringing investment-banking level services to lower middle market M&A. We’re typically working on six to ten transactions at any given time; focusing on a small number of deals allows us to give you and your business the time and attention you deserve. Due to our careful selection, preparation and adherence to a proven process, our close rate is consistently over 80%.

Unlike business brokers, we take a consultative approach to helping you with the sale of your most valuable asset. If we think now is not the best time for you to sell or that selling may not be your best exit strategy we will tell you. We’ll never sell you on selling your business, or use high-pressure sales tactics of any kind.

We call ourselves M&A Advisors. Whatever you call us, just be sure to call us if you’ve built a fantastic business that deserves the best available representation in the marketplace when it comes time to sell.

We start every engagement with our business valuation, which is a stand-alone service with its own fee. If you engage Allan Taylor & Co. to sell your business, we charge an upfront retainer upon signing. There are no others fees until we sell your business, at which time we earn a Success Fee. (Our upfront retainers are nonrefundable, and are typically $5,000 to $10,000 depending on the size of the business and scope of the work involved.)

Our Success Fee is calculated based on the total transaction value when a business is sold. We charge 10% of the total transaction value for businesses that sell for $2M or less. For businesses valued at $2M+ please contact one of our advisors to discuss.

One of the things that makes us different is that we are willing to work on a flat-fee basis as opposed to a percentage. Oftentimes agreeing on a flat fee can take some of the complexity and uncertainty out of M&A fees, making a deal go smoother as it nears completion. Rest assured that we will have an open discussion about our fees before you engage us to help you sell your business.

Allan Taylor & Co. has developed a reputation for producing the best marketing materials available at this level of M&A (<$6M EBITDA). We regularly receive compliments on our work from private equity investors and buyers of all kinds, lenders, CPA’s and attorneys. Quite simply, it’s what we’re great at.

In order to give you and your business the representation that you deserve and attract the highest-quality buyers it takes us four to six weeks to create marketing materials that meet our standards. The upfront retainer offsets some of the time and hard costs associated with this very important work; work that needs to be done before we go to market and the real work starts!

Beware of trying to save money by using a business broker who doesn’t charge an upfront retainer. They will be incented to do as little as possible on the front end, which precludes them from doing the work required to attract high-caliber buyers. They also have a tendency to slam a deal together quickly in order to get their fee. You get what you pay for, as the saying goes. This is not the time to cut corners.

We’ve been working with clients from across the country since 2009. While most of our clients are located in the south central U.S. — specifically Arkansas, Missouri, Oklahoma, Texas and Louisiana — we’ve worked with clients from Oregon to New York City and many points in between.

We’re comfortable working remotely, and can get a deal closed with minimal travel involved. If you’re unsure about whether or not we’re a good fit, please give us a call to discuss.

Allan Taylor & Co. has a number of ways to attract buyers for your business. We subscribe to national online databases and marketplaces that list businesses for sale, have our own internal mailing list of buyers and have developed a national network of advisors and professionals who work in M&A and search for acquisition targets. We also use the connections we’ve built through social media, and work with clients to develop targeted lists of strategic acquirers.

Many business brokers and M&A advisors claim to have a national network. If so, we encourage you to get more information about what that means. In our case, we have carefully curated a national network — and gained a national reputation — through the work we’ve published in the New York Times, Forbes and Inc. Magazine to name a few. We have a large following through social media channels like Twitter and LinkedIn, and are routinely asked to speak and contribute as thought leaders in middle market M&A.

We will discuss the many ways in which we can attract high-quality buyers for your company, and ensure that you are comfortable with our methods well before we go to market.

As mentioned above, our marketing materials are second to none. The two primary marketing documents that we create are the teaser (a one-page blind profile of the business), and the Confidential Information Memorandum (CIM). The CIM is approximately 25 to 30 pages, and tells the story of your business and the opportunity associated with an acquisition. It contains enough information for a buyer to determine whether or not to move forward and make an offer to buy your business. Only serious buyers who have been qualified by us — both operationally and financially — and have signed a Nondisclosure Agreement are allowed to view the CIM.

Again, the quality of our marketing attracts exceptional buyers. We’ve had a number of buyers say that, out of the hundreds of CIM’s they see in a year, ours make them stop and want to learn more about a client’s business. We’d be happy to provide you with examples of our work, and encourage you to do the same for any and all of the M&A advisors or business brokers you are interviewing.