Many small businesses are growing faster through acquisition than through sales.
The Vant Buyer’s Advantage begins with the fact that we have bought and sold many of our own businesses. And we have provided buyer representation on hundreds of deals for our clients looking to buy—both individuals and strategic buyers looking to grow through acquisition. We also understand both sides of the business transfers desk—and other key variables such as funding, valuation and business advisory services.
We have a Passive and Active approach to buying
With the active approach we work with you to source, qualify, value, fund and close your next business acquisition.
With the Active Approach we work with you to source, qualify, value, fund and close your next business acquisition. Whether you are an individual buyer looking to buy your first business or a Private Equity Group looking for deal flow, we have buyer representation designed for you. Our value goes beyond merely searching for a deal. We know how to navigate the mine field that is the small and lower middle market. Our strategic relationships with other Investment Banks, Business Brokers, CPA firms and Financial advisors allows us to tap into a network of business owners that are thinking about selling but not yet listed. And once we find the deal, we work to make sure that the numbers are in fact what they say they are. We help you structure the deal to increase the likelihood of financing. We work closely with the selling broker to close the deal so that your dreams of becoming a business owner become a reality. A buyer who decided to go it alone recently sent us this response when we followed up to see how his go it alone search went.
With the passive approach, we will reach out to you to gather more information on the type of businesses you are looking to acquire.
With the Passive Approach, we will reach out to you to gather more information on the type of businesses you are looking to acquire. We will save your preferences and when an opportunity arises, we will send you an email with some high level information about the business. We have thousands of buyers that we work with, so if there’s something you see, act fast.
What is the Buying Process?
Buyer Representation
Individual Buyer
Corporate Buyer
What is the Buying Process?
Grexo Technology Group
The Vant Group has worked closely with an IT services firm named Grexo Technology Group. Over the last six years they have from $0 to $6M with little capital outlay through our buyer representation program.
During that time we have helped them identify numerous opportunities. As a result, they have acquired small, under performing IT firms at very good value as well as existing profitable businesses. We put them in our system and maximized efficiency. And lower cost.
The largest merger we managed for Grexo was with a company a little less than half their size. During the first month along, Grexo’s net profit went form 20 to 25 percent. Grexo plans to use our services to help them grow from $6M to $20M by 2020, using nothing more than our buyer representation group to assist them.
Buyer Representation
Buyer Representation is a success fee based search for a business acquisition target whose parameters are set by the buying company. Some of the services that are included:
Business Qualifying:
Work with buyers to help target the type of businesses that best fit their strengths
Determine a list of acquisition criteria based on input from buyer
Compare and contrast different industry types
Business Search:
Search all relevant websites for businesses available for sale
Contact all brokerage firms in the area to identify businesses for sale
Advanced Buyer Search:
Generate a list of companies using Dun & Bradstreet databases and from the buyer that fit the buyer’s criteria
Send out a mailer to the list of companies that The Vant Group and buyer have identified
Provide a list of potential targets to buyer
Follow up with personal phone calls to the identified companies by The Vant Group staff
Follow up on those companies with an interest and make a site visit to ensure there is a match. (if applicable)
Business Valuation:
Perform a business valuation on all opportunities that have been identified as potential business acquisition targets. Our business valuations use the standard financial modeling formulas. More importantly, TVG is able to offer more of a “real life” valuation based on its vast experience of acting as an agent in the buy / sell process, as well as through the buying / selling of its own staple of businesses owned by TVG.
Preparation of Initial Offers on an Identified Business Acquisition Target:
Upon selection of a suitable business acquisition target, we will help prepare preliminary offers on the business. TVG is able to use its experience from over 500 deals to formulate the best offer for the buyer, while factoring the seller’s needs to ensure a deal can be consummated. This is most likely the highest value proposition of TVG. A successful transaction is not only measured by the sale price, but more importantly by the deal structure. TVG can save buyers thousands of dollars by creating the most beneficial offer in terms of financing, deal structure, tax implications, etc.
Accounting Due Diligence:
Though TVG is not a CPA firm, we have over 500 deals of experience which help us identify the primary due diligence points to focus on before bringing in a CPA. This enables a buyer to save the time and money associated with going through a full due diligence exercise, especially if the deal does not materialize. The due diligence assistance that TVG performs will save a buyer thousands of dollars before the financials are presented to a CPA.
Negotiations:
Throughout the sale process, there will be ongoing negotiations that may not be covered in the preliminary offer such as: training, assumption of liabilities, office leases, payment terms, etc. This is the most difficult benefit of TVG services to measure, but certainly one of its most valuable. An attorney’s aid to a buyer cannot be replaced, but by using TVG to aid the process, a buyer can rely on us and not worry about attorney’s fees for the multiple issues that will arise throughout the months of the buying process.
Introduction to Professional Services for Due Diligence
Once a deal is close to being consummated, TVG will introduce the buyer to professional services firms that are experts in the area of business transactions which are also cost effective. The areas of services include, but are not limited to:
CPA
Attorney
Banker
Insurance
Human Resources
Bank Financing:
TVG has assisted with over 300 successful business fundings. As part of this service, we will take a buyer from the initial bank application to the ultimate closing and funding of the transaction. Obtaining bank financing can be more difficult than the actual business buying process itself.
Post Closing:
Employees
Banking
Financials
Vendor Issues
In addition, TVG will connect buyers with a cost savings company that will aid them on a success fee schedule to analyze all areas of business spend and propose costs savings solutions that could ultimately increase the net income of the business. Work with buyers throughout their business ownership to begin positioning the business for the ultimate exit strategy. Companies that prepare for sale early on in the process ultimately receive a much higher sale price.
Conclusion:
In summary, by hiring TVG to aid you with your buyer-directed search, we act as an ongoing / as needed resource to cover all aspects of the process, not only until the deal is consummated but well beyond that point. Our fee is earned from the time the first acquisition candidate is identified, through the negotiating process to the time the transaction is consummated and beyond. At TVG, we have not only assisted with over 500 transactions as an agent but have also bought and sold 8 companies that we have owned. We have been in the shoes of both buyers and sellers and therefore offer insight that cannot be afforded to a buyer who acts on his own.
What are the Fees?
An initial retainer will be required to prepare a buyer directed search package
A success fee commission based on the sales price of the business
Individual Buyer
Most individual buyers come from the corporate world and are looking for a solid and profitable investment. We start by listening to your stated business goals, and then search and assist you in qualifying to purchase businesses that best fit your strengths. We can also help you analyze a deal you may already have under consideration. In every case, we help you sift through all of the information and due diligence, so you don’t make the mistakes many first time buyers make.
For example, many novice buyers search a list of businesses for sale without knowing what questions to ask ahead of time.
Some of these questions can include:
How would you verify prospective company makes money it says it does?
Is it in a good industry with a good future?
Do they have contracts or not?
Is their workforce paid enough?
Every business purchase offers its own special challenges—and there can be many factors hard to uncover without the benefit of our extensive experience.
Corporate Buyer
Today, many companies find they grow faster and get a better ROI through acquisition rather than funding their own sales program. Finding the right acquisitions can deliver major cost efficiencies, such as:
Can pick up new management talent
Acquire new and better documentation and training
Qualify more readily for financing-especially in your industry
Expand their geographic reach
Increase revenue and profit ratios
Add more operational capacity, marketing, etc.
We achieve any and all of these benefits—and more—through intelligent acquisition based on a strategic search to uncover good deals on companies that fit your specific criteria for success. We guide you throughout the process. TVG brings a special value to this process because we have been through both individual and strategic business purchases so many times before. You get the benefit of that experience at every step of the way.
Buyer Representation
Individual Buyer
Corporate Buyer
Buying Process
Buyer Representation
Buyer Representation is a success fee based search for a business acquisition target whose parameters are set by the buying company. Some of the services that are included: Business Qualifying:
Work with buyers to help target the type of businesses that best fit their strengths
Determine a list of acquisition criteria based on input from buyer
Compare and contrast different industry types
Business Search:
Search all relevant websites for businesses available for sale
Contact all brokerage firms in the area to identify businesses for sale
Advanced Buyer Search:
Generate a list of companies using Dun & Bradstreet databases and from the buyer that fit the buyer’s criteria
Send out a mailer to the list of companies that The Vant Group and buyer have identified
Provide a list of potential targets to buyer
Follow up with personal phone calls to the identified companies by The Vant Group staff
Follow up on those companies with an interest and make a site visit to ensure there is a match. (if applicable)
Business Valuation:
Perform a business valuation on all opportunities that have been identified as potential business acquisition targets. Our business valuations use the standard financial modeling formulas. More importantly, TVG is able to offer more of a “real life” valuation based on its vast experience of acting as an agent in the buy / sell process, as well as through the buying / selling of its own staple of businesses owned by TVG.
Preparation of Initial Offers on an Identified Business Acquisition Target:
Upon selection of a suitable business acquisition target, we will help prepare preliminary offers on the business. TVG is able to use its experience from over 500 deals to formulate the best offer for the buyer, while factoring the seller’s needs to ensure a deal can be consummated. This is most likely the highest value proposition of TVG. A successful transaction is not only measured by the sale price, but more importantly by the deal structure. TVG can save buyers thousands of dollars by creating the most beneficial offer in terms of financing, deal structure, tax implications, etc.
Accounting Due Diligence:
Though TVG is not a CPA firm, we have over 500 deals of experience which help us identify the primary due diligence points to focus on before bringing in a CPA. This enables a buyer to save the time and money associated with going through a full due diligence exercise, especially if the deal does not materialize. The due diligence assistance that TVG performs will save a buyer thousands of dollars before the financials are presented to a CPA.
Negotiations:
Throughout the sale process, there will be ongoing negotiations that may not be covered in the preliminary offer such as: training, assumption of liabilities, office leases, payment terms, etc. This is the most difficult benefit of TVG services to measure, but certainly one of its most valuable. An attorney’s aid to a buyer cannot be replaced, but by using TVG to aid the process, a buyer can rely on us and not worry about attorney’s fees for the multiple issues that will arise throughout the months of the buying process.
Introduction to Professional Services for Due Diligence
Once a deal is close to being consummated, TVG will introduce the buyer to professional services firms that are experts in the area of business transactions which are also cost effective. The areas of services include, but are not limited to:
CPA
Attorney
Banker
Insurance
Human Resources
Bank Financing:
TVG has assisted with over 300 successful business fundings. As part of this service, we will take a buyer from the initial bank application to the ultimate closing and funding of the transaction. Obtaining bank financing can be more difficult than the actual business buying process itself.
Post Closing:
Employees
Banking
Financials
Vendor Issues
In addition, TVG will connect buyers with a cost savings company that will aid them on a success fee schedule to analyze all areas of business spend and propose costs savings solutions that could ultimately increase the net income of the business. Work with buyers throughout their business ownership to begin positioning the business for the ultimate exit strategy. Companies that prepare for sale early on in the process ultimately receive a much higher sale price.
Conclusion:
In summary, by hiring TVG to aid you with your buyer-directed search, we act as an ongoing / as needed resource to cover all aspects of the process, not only until the deal is consummated but well beyond that point. Our fee is earned from the time the first acquisition candidate is identified, through the negotiating process to the time the transaction is consummated and beyond. At TVG, we have not only assisted with over 500 transactions as an agent but have also bought and sold 8 companies that we have owned. We have been in the shoes of both buyers and sellers and therefore offer insight that cannot be afforded to a buyer who acts on his own.
What are the Fees? An initial retainer will be required to prepare a buyer directed search package
A success fee commission based on the sales price of the business
Individual Buyer
Most individual buyers come from the corporate world and are looking for a solid and profitable investment. We start by listening to your stated business goals, and then search and assist you in qualifying to purchase businesses that best fit your strengths. We can also help you analyze a deal you may already have under consideration. In every case, we help you sift through all of the information and due diligence, so you don’t make the mistakes many first time buyers make.
For example, many novice buyers search a list of businesses for sale without knowing what questions to ask ahead of time.
Some of these questions can include:
How would you verify prospective company makes money it says it does?
Is it in a good industry with a good future?
Do they have contracts or not?
Is their workforce paid enough?
Every business purchase offers its own special challenges—and there can be many factors hard to uncover without the benefit of our extensive experience.
Corporate Buyer
Today, many companies find they grow faster and get a better ROI through acquisition rather than funding their own sales program. Finding the right acquisitions can deliver major cost efficiencies, such as:
Can pick up new management talent
Acquire new and better documentation and training
Qualify more readily for financing-especially in your industry
Expand their geographic reach
Increase revenue and profit ratios
Add more operational capacity, marketing, etc.
We achieve any and all of these benefits—and more—through intelligent acquisition based on a strategic search to uncover good deals on companies that fit your specific criteria for success. We guide you throughout the process. TVG brings a special value to this process because we have been through both individual and strategic business purchases so many times before. You get the benefit of that experience at every step of the way.
Buying Process
Buyer decides time is right to buy a business
The first step in the buying process is relatvely elementary, but unless a buyer truly is ready to become a business owner, the process cannot begin. Many deals have been lost because the seller was not a seller.
Determine Your Buying Parameters
Before a search for a viable business can begin, buyers should have a good idea of their needs and buying requirements. For example, is relocating a possibility? Another parameter should be the financial ramifications of a deal. Other factors to define in your search include the type of industry, annual sales volume, etc. By outlining the parameters of your search, you will increase the chance of finding an offering that fits your criteria.
Identify Potential Businesses
There is always an overabundance of buyers for good business offerings. The key is to determine the right fit for you as the new owner and matching your skill sets to those required to continue operations. Being organized and ready to act should be watchwords in successfully contending in an unbalanced market.
Determine the Value of a Business
The ultimate value of a business will be the final price that will be negotiated between you and the seller. Before placing a business on the market, a value or range of value must be established so that both parties will have a basis for what and how to negotiate. Ultimately, you will determine what to offer and hopefully your figures will be close.
Arrange Meetings With Buyer and Seller
Meeting with a seller for the first time is similar to a first date. You want them to like you and vice versa. The meetings with a seller are of paramount importance to both parties.
Offer to Purchase / Letter of Intent
After meeting with the owner and completing the analysis on the financial statements, buyers will (1) either pass on a business, (2) ask for more information or (3) prepare a formal contract. The two most common legal vehicles are a Letter of Intent or a Purchase Agreement. The main difference between the two documents is the level of commitment. An offer to purchase is more binding.
Negotiations – Structuring the Deal
Once you have submitted a legal contract to acquire a business, the seller has three primary decisions: accept, decline or negotiate. Variables such as payment terms, length of training, consulting agreements and allocation of purchase price are just a few items that can be leveraged to make a deal more favorable.
Due Dilligence
Due diligence is a time to learn more about the other person, his business and determine if you are compatible. The normal range of due diligence can last between 7 to 45 days, with the average length being around 21 days.
Secure Financing
Take a buyer from the initial bank application to the ultimate closing and funding of the transaction. Obtaining bank financing can be more difficult than the actual business buying process itself.
Closing
This is the best part of the whole process, the time you are handed the keys.
Our Value Goes Beyond Merely Searching For A Deal
The Vant Group (TVG) provides buyer-side representation on business transfers up to $100 Million per deal. We are M&A trained with professional knowledge of Investment Banking. You can count on our proven Buy-side process that will take you confidently from start to close.
Been There, Done That
As a team we have bought, sold, or started over 20+ businesses.
Deal Structure
Help you structure the deal to maximize the value.
Financing
Assist with obtaining financing.
Consulting
We will work with you after the purchase to assist with issues that arise after the transfer.
Advisor
As a team; we have bought, sold, or started over 500+ businesses.
Deal Analysis
Keep you away from unsatisfactory deals – we know the brokers in the area and can protect you from wasting valuable time with the wrong partner.
Deal Structure
Our network includes business brokers, individual buyers, private equity firms, investment banks, and strategic buyers
Financing
We are skilled and seasoned negotiators in this space. We will either save you on the purchase price, get you a better deal structure, or both.
Consulting
We are not attorneys or CPAs, but we walk you through enough of the process that you can save significantly on the fees you would otherwise pay to them.
Why use the Vant Group to help in your Buyer's Search
Generate a list of companies using Dun & Bradstreet databases and from the buyer that fit the buyer’s criteria
Send out a mailer to the list of companies that The Vant Group and buyer have identified
Provide a list of potential targets to buyer
Follow up with personal phone calls to the identified companies by The Vant Group staff
Follow up on those companies with an interest and make a site visit to ensure there is a match. (if applicable)
What does TVG do?
In summary, by hiring TVG to aid you with your buyer-directed search, we act as an ongoing / as needed resource to cover all aspects of the process, not only until the deal is consummated but well beyond that point. Our fee is earned from the time the first acquisition candidate is identified, through the negotiating process to the time the transaction is consummated and beyond. At TVG, we have not only assisted with over 700 transactions as an agent but have also bought and sold 8 companies that we have owned. We have been in the shoes of both buyers and sellers and therefore offer insight that cannot be afforded to a buyer who acts on his own.
An existing business has a track record. The failure rate in small business is largely in the start-up phase. The existing small business for sale has demonstrated that there is a need for that product or service. Financial records are available along with other information on the business. Most sellers will stay and train a new owner and some will also supply financing. Finding someone who will teach you the intricacies of running a business and who is also willing to finance part of the sale can make all the difference to your success.
You want to consider only those businesses for sale that you would feel comfortable owning and operating. “Pride of Ownership” is an important ingredient for success. You also want to consider only those businesses for sale that you can afford with the cash you have available. In addition, the business you buy must be able to supply you with enough income – after making payments on it – to pay your bills. However, you should look at a business for sale with an eye toward what you can do with it – how you can improve it and make it more productive and profitable. There is an old adage advising that you shouldn’t buy a business unless you feel you can do better than the present owner. Everyone has seen examples of a business that needs improvement in order to thrive, and a new owner comes in and does just that. Conversely, there are also cases where a new owner takes over a very successful business eventually after, it either closes or is sold. It all depends on you!
You should start looking for a business as soon as you are positive that becoming a business owner is what you want to do. There are several factors that are involved in being able to buy a business including your personal financial statement, cash available for a down payment, personal credit history, work history and experience and overall motivation. But if you are confident that this is a step you are ready to take and have the ability to execute once you find a business, then now is the best time to start. It can take anywhere from a few months to 2 years to find the business that fits most of your criteria. And solid business opportunities don’t last on the market for long. The sooner you start looking, the sooner you can find your business.
Every business search is different. No one can tell you exactly how long it will take to find a business, but it can take anywhere from a few months to a few years. A lot depends on the search criteria, industry, and geography that you are searching. Also having the ability to quickly analyze a deal and act plays a major part in how long it takes. Solid businesses don’t last on the market long. And more experienced investors often have the resources to move on a deal quickly.
It may be advisable to have an attorney review the legal documents. It is important, however, that the attorney you hire is familiar with the process of buying a business and has the time available to handle the paperwork on a timely basis. If the attorney does not have experience in handling business sales, you may be paying for the attorney’s education. Most business brokers have lists of attorneys who are familiar with the business buying process. An experienced attorney can be of real assistance in making sure that all of the details are handled properly. Business brokers are not qualified to give legal advice.
However, keep in mind that many attorneys are not qualified to give business advice. Your attorney will be, and should be, looking after your interests; however, you need to remember that the seller’s interests must also be considered. If the attorney goes too far in trying to protect your interests, the seller’s attorney will instruct his or her client not to proceed. The transaction must be fair for all parties. The attorney works for you, and you must have a say in how everything is done.
An experienced business broker can recommend a qualified attorney as well as other advisors you may need along the way.
Sellers are very concerned about confidentiality because of fear of losing customers, losing employees, general uncertainty and actions taken by competitors. Therefore, as a potential buyer, you must treat confidentiality seriously. Buyers should not talk to employees, clients, suppliers, or competitors without written approval from the seller. Maintaining confidentiality is also advantageous to the buyer because a smooth transition without problems is good for business.
You want to consider only those businesses for sale that you would feel comfortable owning and operating. “Pride of Ownership” is an important ingredient for success. You also want to consider only those businesses for sale that you can afford with the cash you have available. In addition, the business you buy must be able to supply you with enough income – after making payments on it – to pay your bills. However, you should look at a business for sale with an eye toward what you can do with it – how you can improve it and make it more productive and profitable. There is an old adage advising that you shouldn’t buy a business unless you feel you can do better than the present owner. Everyone has seen examples of a business that needs improvement in order to thrive, and a new owner comes in and does just that. Conversely, there are also cases where a new owner takes over a very successful business eventually after, it either closes or is sold. It all depends on you!
You should start looking for a business as soon as you are positive that becoming a business owner is what you want to do. There are several factors that are involved in being able to buy a business including your personal financial statement, cash available for a down payment, personal credit history, work history and experience and overall motivation. But if you are confident that this is a step you are ready to take and have the ability to execute once you find a business, then now is the best time to start. It can take anywhere from a few months to 2 years to find the business that fits most of your criteria. And solid business opportunities don’t last on the market for long. The sooner you start looking, the sooner you can find your business.
Every business search is different. No one can tell you exactly how long it will take to find a business, but it can take anywhere from a few months to a few years. A lot depends on the search criteria, industry, and geography that you are searching. Also having the ability to quickly analyze a deal and act plays a major part in how long it takes. Solid businesses don’t last on the market long. And more experienced investors often have the resources to move on a deal quickly.
It may be advisable to have an attorney review the legal documents. It is important, however, that the attorney you hire is familiar with the process of buying a business and has the time available to handle the paperwork on a timely basis. If the attorney does not have experience in handling business sales, you may be paying for the attorney’s education. Most business brokers have lists of attorneys who are familiar with the business buying process. An experienced attorney can be of real assistance in making sure that all of the details are handled properly. Business brokers are not qualified to give legal advice.
However, keep in mind that many attorneys are not qualified to give business advice. Your attorney will be, and should be, looking after your interests; however, you need to remember that the seller’s interests must also be considered. If the attorney goes too far in trying to protect your interests, the seller’s attorney will instruct his or her client not to proceed. The transaction must be fair for all parties. The attorney works for you, and you must have a say in how everything is done.
An experienced business broker can recommend a qualified attorney as well as other advisors you may need along the way.
Sellers are very concerned about confidentiality because of fear of losing customers, losing employees, general uncertainty and actions taken by competitors. Therefore, as a potential buyer, you must treat confidentiality seriously. Buyers should not talk to employees, clients, suppliers, or competitors without written approval from the seller. Maintaining confidentiality is also advantageous to the buyer because a smooth transition without problems is good for business.
