Guardians of Tradition, Architects of Tomorrow
Do I have to pay broker commisons?
Firstly, if you approach us as a private seller and currently do not have a broker, you are not required to pay a broker's fee. We are not brokers or sellers; rather, we are buyers who specialize in structuring purchases akin to Wall Street like project deals, which we then make available to accredited investors.
If you already have a broker agreement in place, the payment of commission for the sale of your business is subject to the terms outlined in that agreement.
We cultivate strong relationships with multiple brokers to access additional deal flow that originates from other sources, rather than private sellers. In this process, we prioritize the integrity of existing agreements between sellers and brokers, ensuring that we do not compromise these relationships. Our commitment to upholding the highest standards of integrity guides our actions, and we adhere to the principle of "Brokers Protected" when an agreement is already in place, ensuring that we maintain a reputation for trustworthiness.
While we uphold the terms of broker agreements, we recognize that certain circumstances may warrant a reevaluation of the structure of seller's commission payout. In such cases, we may explore alternative arrangements that reallocate a portion of the commission to the broker, without compromising the total amount they are entitled to receive. This approach may involve restructuring the deal to categorize and pay out a portion of the commission in a different manner, potentially through a rebranded finder's fee or witness signer fee. This approach ensures that the broker receives their full entitlement, while also maintaining transparency with investors and complying with SEC regulations.
If you already have a broker agreement in place, the payment of commission for the sale of your business is subject to the terms outlined in that agreement.
We cultivate strong relationships with multiple brokers to access additional deal flow that originates from other sources, rather than private sellers. In this process, we prioritize the integrity of existing agreements between sellers and brokers, ensuring that we do not compromise these relationships. Our commitment to upholding the highest standards of integrity guides our actions, and we adhere to the principle of "Brokers Protected" when an agreement is already in place, ensuring that we maintain a reputation for trustworthiness.
While we uphold the terms of broker agreements, we recognize that certain circumstances may warrant a reevaluation of the structure of seller's commission payout. In such cases, we may explore alternative arrangements that reallocate a portion of the commission to the broker, without compromising the total amount they are entitled to receive. This approach may involve restructuring the deal to categorize and pay out a portion of the commission in a different manner, potentially through a rebranded finder's fee or witness signer fee. This approach ensures that the broker receives their full entitlement, while also maintaining transparency with investors and complying with SEC regulations.
Can you give more details about your projects?
We engage in the development of diverse projects spanning a broad range of fields, including Aerospace, security and defense enhancements (some falling within the classified category), cognitive advancements aimed at enhancing human performance, and projects addressing eco-social stability. These initiatives often disrupt industries and drive advancements.
Within these projects, we actively pursue the acquisition of viable companies to meet capacity requirements and enhance various aspects to propel the projects forward towards completion. Identified businesses are strategically integrated, maintaining their confidentiality, and subsequently included in project proposals presented to accredited investors. The generated funds are then redirected to support all facets of the project(s), encompassing the acquisition of incorporated businesses and other disclosed operational costs outlined in project disclosure statements provided to accredited investors.
Within these projects, we actively pursue the acquisition of viable companies to meet capacity requirements and enhance various aspects to propel the projects forward towards completion. Identified businesses are strategically integrated, maintaining their confidentiality, and subsequently included in project proposals presented to accredited investors. The generated funds are then redirected to support all facets of the project(s), encompassing the acquisition of incorporated businesses and other disclosed operational costs outlined in project disclosure statements provided to accredited investors.
Do you have restrictions where your buying?
Presently, our focus is solely on identifying feasible acquisitions within the continental USA and Ontario, Canada. Given the substantial response and interest from businesses aiming to leverage our distinctive Wall Street-like exit strategies, we find it necessary to introduce new requirements to streamline the evaluation process for potential acquisitions.
What is the Market Value of my Business?
The market value of your business can vary depending on various factors such as industry, location, size, profitability, market trends and many other elements.
It is important to be cautious and avoid individuals who approach you with offers to sign a contract for selling your business. These individuals may present a detailed financial package and appraisal that artificially inflates the value of your business, often by as much as 300% above the actual market value. They do this to entice business owners into listing with them, while also charging exorbitant fees (sometimes exceeding $60,000) for the preparation of the sellers package with these inflated numbers. As a result, it is not surprising that nine out of ten businesses never sell within the owner's lifetime, as many become trapped in contracts that restrict their freedom and hinder their retirement and estate's future.
It is important to be cautious and avoid individuals who approach you with offers to sign a contract for selling your business. These individuals may present a detailed financial package and appraisal that artificially inflates the value of your business, often by as much as 300% above the actual market value. They do this to entice business owners into listing with them, while also charging exorbitant fees (sometimes exceeding $60,000) for the preparation of the sellers package with these inflated numbers. As a result, it is not surprising that nine out of ten businesses never sell within the owner's lifetime, as many become trapped in contracts that restrict their freedom and hinder their retirement and estate's future.
Risks or challenges in selling my business?
# 1 Risk: Being stuck in that 90% plus nightmare of wannabe sellers..
The primary risk is realizing after years of effort that you fall into the 90% or more of business owners who are unable to find a buyer. This means being deprived of vital retirement funds and the rewards of your hard work in building your business. Additionally, there's uncertainty about what will happen to your legacy and your employees after you're gone.
Here are other potential risks and challenges in selling a business:
- Finding the right buyer
- Valuation and pricing challenges
- Maintaining confidentiality during the sale process
- Conducting thorough due diligence
- Negotiating deal terms and protecting your interests
- Ensuring employee and customer retention during the transition
- Complying with legal and regulatory requirements
- Managing tax implications and liabilities
- Emotional attachment to the business
- Market conditions affecting the sale process
These are just some of the key risks and challenges involved in selling a business.
What records should I have for potential buyers?
When preparing to sell your business, it is important to compile several key documents and financial records to provide potential buyers with a comprehensive understanding of your business. Here are some types of documentation and financial records you should gather:
Financial Statements (balance sheets, income statements, cash flow statements)
- Tax Returns (3-5 years of business tax returns)
- Legal Agreements (leases, contracts, partnerships)
- Licenses and Permits (business licenses, permits, certifications)
- Intellectual Property Assets (trademarks, patents, copyrights, software)
- Equipment and Asset Lists (inventory of physical assets and equipment)
- Employee Information (organizational chart, job descriptions, contracts)
- Customer and Supplier Data (customer demographics, sales data, supplier contracts)
- Marketing and Advertising Materials (marketing materials, website, social media profiles)
- Financial Projections (forecasts, market analysis, growth prospects)
Remember, this is just a summary, and you should gather additional relevant documentation depending on your specific business and industry.
Are the tax implications selling my business?
The potential tax implications of selling a business can vary depending on the specific circumstances and the tax laws in the jurisdiction where the business is located. However, here are some general tax considerations that may apply:
- Capital Gains Tax: Potential liability on the profit made from the sale, based on the difference between the sale price and cost basis of business assets.
- Depreciation Recapture: The IRS may require recapturing a portion of previously claimed depreciation deductions as ordinary income.
- Business Entity Type: Different entity structures can have varying tax treatments and rules.
- Qualified Business Deduction (QBID): Pass-through entities may be eligible for a deduction to offset qualified business income.
- State and Local Taxes: Additional taxes may apply depending on the state and local tax laws.
- Installment Sales: Structuring the sale with installment payments can affect the timing of recognizing gains for taxation.
- Exclusions and Deferrals: Some jurisdictions may offer exclusions or deferrals for specific types of business sales (e.g., Section 1202 exclusion in the United States for qualified small business stockholders).
It is recommended to consult with a tax advisor to understand the specific tax implications for your business sale.
Can I stay with the business after the sale?
Typically, we prefer the seller to stay involved in the business during a transition period, although it's not mandatory. This gradual transition has proven effective in alleviating any anxiety that employees may experience following a change in business ownership.
What implications involved in selling my business?
Yes, there can be several legal and financial implications involved in selling your business. Some of the key considerations include:
- Tax implications, including capital gains tax.
- Determining the fair value and pricing of the business.
- Conducting due diligence and providing necessary documents and information to potential buyers.
- Drafting and signing legally binding agreements, such as the purchase agreement and non-disclosure agreements.
- Transfer of licenses, permits, and regulatory approvals.
- Consideration of employee issues, such as employment impact, notifications, and potential obligations.
- Consultation with professionals such as attorneys, accountants, and business advisors to navigate the sales process and comply with obligations.
Please note that this is a simplified overview, and it is essential to seek professional advice tailored to your specific circumstances.
What terms & conditions in a sale transaction?
While the terms and conditions of a business sale transaction can vary depending on the specific circumstances and parties involved, there are some typical clauses that are often included. Here are some common terms and conditions:
- Purchase Price
- Payment Terms
- Assets and Liabilities
- Due Diligence
- Non-Competition and Non-Solicitation
- Closing and Transition Period
- Representations and Warranties
- Redress for Breach
- Confidentiality
- Governing Law and Jurisdiction
Please note that these are just general categories, and the specific terms and conditions within each category can vary depending on the agreement and parties involved.
How to maintain confidential until a deal is finalized?
To help ensure confidentiality during a business sale:
- Use Non-Disclosure Agreements (NDAs)
- Limit information sharing to qualified buyers until you know they are legit & not tire kickers
- Employ targeted marketing strategies
- Prepare professionally redacted documentation
- Designate a single point of contact for communication
- Engage professionals (brokers, bankers, attorneys)
- Inform and obtain commitments from employees
- Conduct due diligence on potential buyers
- Implement strong cybersecurity measures
- Develop a clear exit plan
Remember that these steps work together to create a comprehensive approach to maintain confidentiality throughout the business sale process.
Any restrictions on selling a businesses?
Yes, there are various restrictions and limitations on selling certain types of businesses. These restrictions and limitations can arise from legal, financial, regulatory, or ethical considerations. Here are a few examples:
Here are some examples of specific restrictions or limitations within each category:
Regulatory Restrictions:
Industries with specialized regulations, such as healthcare, energy, telecommunications, or finance, may require specific approvals or permits for the sale. Government authorities may impose restrictions on foreign ownership or require national security clearances.
Ownership Limitations:
Some industries, such as aviation or defense, may have restrictions on foreign ownership or require government approval for ownership transfers. Certain countries may have specific rules regarding ownership of land or natural resources.
Intellectual Property Protections:
Business sales involving intellectual property, such as patents, trademarks, or copyrights, may require proper authorization or agreements to transfer ownership of these assets.
Contractual Obligations:
Existing contracts with suppliers, customers, landlords, or lenders may have clauses that restrict or require consent for the sale of the business. Leases or loans may include provisions that require repayment or renegotiation upon sale.
Financial Liabilities:
Unpaid debts, loans, or tax obligations may need to be resolved before selling a business Some jurisdictions may require sellers to provide financial disclosures or ensure buyer financial suitability.
Ethical Considerations:
Some industries, such as weapons manufacturing or adult entertainment, may face restrictions based on ethical or societal concerns. Selling a business engaged in illegal activities, such as drug trafficking or money laundering, would be prohibited.
It is important for business owners and potential buyers to consult legal, financial, and industry professionals to ensure compliance with any restrictions or limitations before proceeding with a sale.
Here are some examples of specific restrictions or limitations within each category:
Regulatory Restrictions:
Industries with specialized regulations, such as healthcare, energy, telecommunications, or finance, may require specific approvals or permits for the sale. Government authorities may impose restrictions on foreign ownership or require national security clearances.
Ownership Limitations:
Some industries, such as aviation or defense, may have restrictions on foreign ownership or require government approval for ownership transfers. Certain countries may have specific rules regarding ownership of land or natural resources.
Intellectual Property Protections:
Business sales involving intellectual property, such as patents, trademarks, or copyrights, may require proper authorization or agreements to transfer ownership of these assets.
Contractual Obligations:
Existing contracts with suppliers, customers, landlords, or lenders may have clauses that restrict or require consent for the sale of the business. Leases or loans may include provisions that require repayment or renegotiation upon sale.
Financial Liabilities:
Unpaid debts, loans, or tax obligations may need to be resolved before selling a business Some jurisdictions may require sellers to provide financial disclosures or ensure buyer financial suitability.
Ethical Considerations:
Some industries, such as weapons manufacturing or adult entertainment, may face restrictions based on ethical or societal concerns. Selling a business engaged in illegal activities, such as drug trafficking or money laundering, would be prohibited.
It is important for business owners and potential buyers to consult legal, financial, and industry professionals to ensure compliance with any restrictions or limitations before proceeding with a sale.
The top five inquiries business sellers often ask us!
Other commonly asked questions by Business Sellers!
Will you buy a business that is under contract for sale with a broker?
We primarily acquire businesses directly from private sellers rather than using brokers, but we do work with brokers for viable opportunities. We value our relationships with both brokers and private sellers and maintain strict confidentiality to protect the identities of the brokers we deal with, ensuring they do not face backlash from others in the industry. We structure deals carefully to comply with regulations and offer compensation to brokers in a manner that is better suited for our investors and SEC regulations. We strive to handle transactions quickly, addressing issues and meeting the needs of our investors and the sellers from whom we buy.
Do you have a purchase Criteria for the types of businesses you buy?
Our Purchase Criteria can be found from the links above.
How long does it take to complete the sale?
The time it takes to sell a business can vary widely depending on factors like its size, complexity, market conditions, industry, and the chosen method of sale. Unfortunately, many businesses struggle to find buyers even after years of being listed with brokers. This often leads to the closure of successful businesses, as owners may become ill, pass away, or be unable to continue running operations due to age.
Notably, it's estimated that more than 90% of businesses listed with brokers fail to sell, leaving many owners uncertain about their future, including their retirement plans and the legacy of their business after they pass.
At DealSyndicators, our aim is to mitigate these risks for sellers by introducing Wall Street-style buyout deal structures typically reserved for public companies to the private market. These structures can significantly shorten the time it takes to sell a business, often completing transactions in under a year. They also provide sellers with capital sooner than traditional options, safeguarding legacies and improving job security for employees.
How soon would I get paid for the sale of my business?
Sellers of businesses involved in a rolled-up project would be compensated based on the negotiated terms agreed upon with the project negotiator. In certain cases, sellers may be able to receive an all-cash payout at the closing, eliminating the need to wait for years as with other buyers. Our deals typically follow Wall Street deal structures and financing methods, with most acquisitions being funded through Syndicated Deals available to institutional and accredited investors upon full subscription.
Businesses participating in these transactions are kept confidential unless sellers agree otherwise under certain restrictions. Sellers may opt for a payout structure based on tax planning, such as an annuity-type payout, or even the possibility of taking an equity position or equity roll on certain projects. Exciting new projects on the horizon include industry disruptors and groundbreaking global market introductions.
What will happen with my employees after the sale?
Typically, the business will maintain its regular operations and, over time, discover increased demand for its products or services as planned. This expansion is not limited to fulfilling existing orders but extends to new requests associated with integrated projects. This scenario presents an opportunity for enhanced job security and potential promotions, particularly as operational capacity utilization grows
I have a lifetime of legacy in the business what will happen to it when I sell?
We plan to continue the strong legacies of the businesses we acquire that are well-established and recognized in their respective markets. We have a program in place that assists in maintaining and building upon that legacy, which would be discussed and agreed upon during the purchasing process.
We primarily acquire businesses directly from private sellers rather than using brokers, but we do work with brokers for viable opportunities. We value our relationships with both brokers and private sellers and maintain strict confidentiality to protect the identities of the brokers we deal with, ensuring they do not face backlash from others in the industry. We structure deals carefully to comply with regulations and offer compensation to brokers in a manner that is better suited for our investors and SEC regulations. We strive to handle transactions quickly, addressing issues and meeting the needs of our investors and the sellers from whom we buy.
Do you have a purchase Criteria for the types of businesses you buy?
Our Purchase Criteria can be found from the links above.
How long does it take to complete the sale?
The time it takes to sell a business can vary widely depending on factors like its size, complexity, market conditions, industry, and the chosen method of sale. Unfortunately, many businesses struggle to find buyers even after years of being listed with brokers. This often leads to the closure of successful businesses, as owners may become ill, pass away, or be unable to continue running operations due to age.
Notably, it's estimated that more than 90% of businesses listed with brokers fail to sell, leaving many owners uncertain about their future, including their retirement plans and the legacy of their business after they pass.
At DealSyndicators, our aim is to mitigate these risks for sellers by introducing Wall Street-style buyout deal structures typically reserved for public companies to the private market. These structures can significantly shorten the time it takes to sell a business, often completing transactions in under a year. They also provide sellers with capital sooner than traditional options, safeguarding legacies and improving job security for employees.
How soon would I get paid for the sale of my business?
Sellers of businesses involved in a rolled-up project would be compensated based on the negotiated terms agreed upon with the project negotiator. In certain cases, sellers may be able to receive an all-cash payout at the closing, eliminating the need to wait for years as with other buyers. Our deals typically follow Wall Street deal structures and financing methods, with most acquisitions being funded through Syndicated Deals available to institutional and accredited investors upon full subscription.
Businesses participating in these transactions are kept confidential unless sellers agree otherwise under certain restrictions. Sellers may opt for a payout structure based on tax planning, such as an annuity-type payout, or even the possibility of taking an equity position or equity roll on certain projects. Exciting new projects on the horizon include industry disruptors and groundbreaking global market introductions.
What will happen with my employees after the sale?
Typically, the business will maintain its regular operations and, over time, discover increased demand for its products or services as planned. This expansion is not limited to fulfilling existing orders but extends to new requests associated with integrated projects. This scenario presents an opportunity for enhanced job security and potential promotions, particularly as operational capacity utilization grows
I have a lifetime of legacy in the business what will happen to it when I sell?
We plan to continue the strong legacies of the businesses we acquire that are well-established and recognized in their respective markets. We have a program in place that assists in maintaining and building upon that legacy, which would be discussed and agreed upon during the purchasing process.
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