If you're considering selling your business, we can help. Affinity Ventures’s experienced and dedicated team of merger and acquisition business broker professionals have helped hundreds of owners find the ideal buyer or investor for their business. Whether you're looking to cash in on your hard work and exit on top now or seeking an investor to expand your company, we can help.
Obtaining a Business Valuation Is the First Step
When you're ready to sell your business, the first step is understanding what potential buyers are likely to pay for it. Affinity Ventures will take the time to examine all relevant factors in your company to understand your current and future performance to provide you with a realistic value range. The best part is we provide this service at no cost to our potential M&A clients, something many other merger and acquisition firms charge over $30,000.
Affinity Ventures takes the time to get to know your company in depth so you're well represented during the sales process. Our team works for you, and not the buyer, to generate multiple offers and negotiate the highest-selling price possible. We have a massive database of investors from all over the world who are interested in our clients’ businesses. Unlike our other large competitors, Affinity Ventures has no large upfront fees to get started. That means we work hard to earn your business and don’t get paid until we have yielded real results. That’s why over 85% of our clients successfully sell their company through us.
What Options Do I Have for Selling My Business?
Selling a company is often more complex and time-consuming than most business owners anticipate. While finding the right M&A advisor is the first decision to make as they will help you navigate the divestiture process, business owners have many options to consider when transitioning their companies. There are several strategies for selling your business that you can discuss with your advisor, including:
100% Sale or Buyout
A buyout or 100% sale is usually an outright asset purchase, although it is possible to negotiate a stock sale as well. This type of sale generally results in a more expedited process and has the benefit of generating the majority of cash when the transaction closes. It also provides a quick transition for the owner from the business. This is a great option for a business owner who has made the decision to sell and is ready to move on to the next phase of their life. Confidentiality is key. We have never had a breach of confidentiality and don’t plan to in the future.
Private Equity Recapitalization or Recap
In a private equity recapitalization (Recap) deal, a sizable stake in the business is sold. Usually, most buyers prefer a majority interest investment and require the sellers to roll some equity and continue on in the business in some capacity for a certain period of time. This is a great option for a business owner who wants to cash in on their business success now and also capitalize on future growth. Through our structured 5-step facilitation process, this strategy often results in finding the best investment partner, with the highest valuation and chance of getting paid in a second future liquidity event. We have successfully completed many recapitalizations that generated personal wealth liquidity and developed a succession plan for our clients with the benefit of continuing to manage the business for a desired period of time. Find out how we can help you cash in and sell your business twice.
Management Buyout or MBO
A management buyout (MBO) is often an internal transaction that is a great option when managers within the business want to purchase the company. In this type of deal, assets or cash flow of the business are used to finance an existing management team’s purchase directly from the owners. However, existing managers rarely have the skills or access to the necessary equity and additional resources needed to significantly grow the business post-purchase. This type of deal may be attractive because there is a ready available buyer and it’s the easiest type of transition, but it rarely produces the highest value.
Employee Stock Ownership Plan or ESOP
An employee stock ownership plan (ESOP) is similar to a management buyout (MBO) in that it can yield significant tax savings and uses traditional sources of capital. Valuations are generally lower, and the deal comes with complicated reporting requirements. Additionally, this type of deal can result in lower cash flows when departing employees redeem their shares.
Selling your business is one of the most financially significant and impactful decisions you will make in both your private and professional life. That's why it's vital you work with an expert who understands the ins and outs of the acquisition, merger, and selling of companies. Affinity Ventures has more than 30 years of experience successfully selling companies in a variety of industries. That's what we do.
Key Questions Business Owners Have When Selling
- How much is my business worth?
- What is the difference between selling my business and finding investors for growth capital?
- Should I sell 70% of my business now or 100% of my business in 5 years?
- How do you obtain multiple competitive offers when selling a business?
- What is the smallest size of business that can use this sale process?
- My business is too small for an M&A sale process. What can I do instead?
- What can I do to make my business more valuable to buyers?
- My business is making great money. Why should I sell now?
- Why should I sell my business if I’m not ready to retire?
- When is the best time to sell my business?
At Affinity Ventures, we specialize in finding the perfect investors for growth capital and use a process that yields multiple competitive offers when selling a minority, majority, or 100% of your company. This ensures you receive maximum value and our negotiators attain the best deal possible.
Our team is led by president and founder Bruce Burns who has over 30 years of M&A experience. The firm has more than 90 years of collective transaction experience, business ownership, and senior management experience, including work with public, private, and non-profit companies.
Each of our managing directors has been engaged in investment banking and business brokerage for most of their working lives. Our team’s ability to simplify complex issues, recognize opportunities, and guide a transaction to close are legendary according to our clients. Over the years, we have cultivated a proven process that has successfully closed over 265 deals! That's why sellers are hard-pressed on finding a better group to represent them in the sales of their businesses.
If you're ready to exit on top, call our team at (505) 881-5352 to set up your free consultation and market valuation today.