FSBO the creepy title clown
Everyone knows the pitfalls of a FSBO deal in a residential buy-sell. Studies show that FSBOs sell for less, spend more time on the market and often are beset with problems that just don’t happen when a professional is involved.
Why would anyone think selling a title agency is any different?
A properly licensed Investment Banker who truly understands your business adds value beyond just sourcing a buyer via their proprietary network of Underwriters, Private Equity Investors and other Independents.
You also get:
- Improved economic and business terms. This flows from:
- Credibility in knowing private market valuations and typical deal structures,
- Credibility of being a professional team that buyers know they can’t “get one over on”,
- Holding buyers accountable in terms of REAL EBITDA, industry-recognized add-backs etc.,
- The real or perceived threat that a professional Investment Bank can approach other buyers,
- Analysis and review of term sheets/LOI to make sure very little is “left to chance”
- Working alongside your firm post term sheet/LOI. The value add flows from:
- Holding buyers accountable during the legal due diligence and QoE (quality of earnings) phase of the transaction.
- Keeping the deal on track by coordinating between lawyers, accountants, buyer, seller….etc.
- Holding seller’s other professionals accountable (lawyers, accountants) in terms of quality and timing of deliverables.
- Helping organize and maintain the electronic data room.
- Allowing the business owner to continue to focus on the business and not be distracted by the transaction (which is a full time job).
No wonder then that a recent study showed that 100% of business owners who sold their business with the help of an investment banker said the Investment Banker added value (69% even said the value added was ‘significant’).
Turk & Co is a title industry centric M&A firm with global reach that specializes in selling title companies, large and small. We take a hands-on approach to our client relationships, working closely with you to understand your objectives and build the right strategy for you to achieve a successful and meaningful exit.
The professionals at Turk & Company have decades of experience in helping business owners evaluate all aspects of the buy and sale process.