How to Buy or Sell a Business
June 16, 2014 presentation and open discussion with Larry Jones, Vice President, First State Bank, Linda Purcell, President, Purcell Associates LLC, Ralph Dieckmann, Managing Director, Integre Partners, Ltd., and William A. Price, Attorney, Growth Law.
Hosted by the Chicago University Booth School of Business Entrepreneurial Roundtable alumni group at Calamos Investments Building, City Gate Grille Plaza Level, Naperville, Illinois.
Future events and videos at – GSBER.ClubExpress.com
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Video by Stone Cliff Productions, Inc. – StoneCliffProductions.com
A business is like a farm, in many ways. You can add production by improving your methods, but may be able to double output a lot faster if you can buy the farm across the highway. You get profits from every sale, but get even more if you can sell the operation after you can prove its productivity. Or can build the place up to private equity or even higher levels of sales multiples, through internal productivity that produces growth, and faster growth through acquisitions.
Our panel has helped many entrepreneurs prepare and list business for sale, find buyers, and negotiate terms for both buyers and sellers, or buy other companies for their organizations. They are:
THE BUYER AND BANK PURCHASE/SALE EXPERT: Larry Jones, Vice President, First State Bank, (FirstStateBank.biz) and Senior Consultant, Property Management, SOURCE Management. In his present position at First State Bank, and in prior work for Valley Community Bank, Old Second Bank, and LaSalle Bank, Larry has built and managed an outstanding business loan portfolio, while making friends with just about every business man and woman in the Fox Valley area. He has also helped his home institutions buy and sell banks. Larry’s presentation will explain how you can qualify for SBA loans his bank offers, and how he has viewed the business purchase and sale process (and the many other professionals involved in same, like brokers, lawyers, and accountants or other due diligence specialists) as a banker, a buyer, and a seller.
THE BUYER’S BROKER: Ralph Dieckmann, Managing Director, Integre Partners, Ltd. (IntegrePartners.com). Since 1989, Ralph has been an investor in new ventures and private equity buyouts, sitting on public and private boards. These experiences led in a natural sequence to his interest in expanding from the practice of executive search to buy-side acquisition advisory. The formation of Integre Partners as a successor to Dieckmann & Associates provides a research and outreach platform on which both practices run efficiently.
His buy-side clientele include first time individual buyers who are relatively unsophisticated in the acquisition process as well as large private equity organizations relying on buyouts as the fundamental basis of their business model. He has also assisted corporations – from tiny to multi-billion dollar size – in expanding their scope and positioning through the acquisition process.
His firm’s primary objective is aiding clients to locate attractive targets which are “proprietary” in nature, i.e. not represented by a sell-side agent. This provides the clients with timing and pricing advantages.
THE SELLER’S BROKER: Linda Purcell, President, Purcell Associates LLC. (PurcellASC.com). Linda knows both sides, but she will focus on how to prepare a company for sale and to work effectively with a business broker and other professionals to obtain maximum value for the seller(s). Purcell Associates LLC serves as M&A Broker for those interested in harvesting their wealth from the business they have built or those seeking to acquire ownership. Purcell Associates LLC can assist with a third party evaluation to establish credible market value. Linda J. Purcell, is Past president of MBBI, a Past Chair of IBBA, a Fellow of IBBA, a Certified Business Intermediary, a member of M&A Source, the Institute of Certified Business Counselors, AM&AA, a Certified Senior Business Analyst with Business Evaluation Systems, and a licensed Real Estate Managing Broker in Illinois and Indiana, as well as a licensed Real Estate Broker in Wisconsin.
THE LAWYER AND MODERATOR: William A. Price, Attorney, Growth Law, (GrowthLaw.com). The rule of thumb is that you will need about an inch of paperwork for every million dollars in a deal, and Bill has done his share to wipe out American forests. He has a proven track record of successful negotiations for mergers and acquisitions, business organization, successful legal briefs before the U.S. Supreme Court and other venues, shareholder rights litigation, and other negotiations for clients ranging from individual retail store owners to Fortune 50 companies. His clients come from Japan, Germany, Indonesia, Pakistan, and many other countries, as well as the U.S., for inbound and outbound purchase deals.