Three Professional Services

Dakin Business Group

  • Ethically supports buyers and sellers through decision making, valuation, and transactions
  • Finds the right business for a buyer’s specific interests, the right buyer for a seller’s business & navigates them both through the process
  • Gives buyers and sellers an understanding of value as a tool for reinventing, developing, planning for the future

Business intermediaries, attorneys and financial advisors all have a critical role in protecting buyers and sellers from mistakes. Expert valuation, accurate legal documents, financial recommendations for the structure of the sale, and general advice are all important in a buying or selling transaction. Assuming you know may cost you in a deal gone bad, limit your financial potential, or land you in court. Professionals like Dakin Business Group protect your interests.

Buying

It is easy to be enchanted with a business for sale in New Mexico. But not everyone is cut out to run his or her own business. Successful employees may not be successful or happy owning the business. Owners take on more stress, financial risk and liability than employees do! And if you hate widgets, you probably aren’t going to like owning a widget-making business.

Knowing your criteria for making a business purchase selection is critical. Think about:

  • Is it a business I can be proud of and want to work at?
  • Will I enjoy and have the skills necessary to ensure the success of the business?
  • Is the business financially viable, now and looking forward?
  • Can I see the next generation of the business, knowing where I might take it?
  • Will the business support the work-life balance I want?

Selling

Positioning a business for sale involves knowing – and being able to demonstrate – that the business is financially viable today and in the future. Financial health, historical performance, quality of the product or service, the regulatory and environmental challenges, and current economic realties all play a part in how a seller markets a business.

Dakin Business Group walks you through the entire selling process:

  • Planning and positioning for sale
  • Listing to capture a sufficient number of qualified buyers
  • Marketing – uniquely defined for each business – from online to personal contacts
  • Vetting an offer
  • Due diligence – the methodical, open, and respectful investigation by the buyer
  • Closing with a neutral attorney capturing the nuances of the sale

Valuation

Valuing a business isn’t just plugging numbers into a formula. Conversely, just because you think your business is worth a ton – or very little – doesn’t mean anyone else does. Business valuation is a little bit art, a little bit science, and a whole lot of digging into the numbers, clients, economic realities and intangibles of a company.

That’s why you need a savvy, experienced business intermediary to value your business – whether you’re interested in buying or selling. Dakin Business Group brings over 30 years experience buying and selling businesses, and certifications from both the International Business Brokerage Association and the Institute of Business Appraisers.

Thinking of buying or selling a business? Contact us today for a no-obligation consultation.

Tips for Maximizing Business Value

Tip #7
Understating Inventory

Reporting a lower inventory to their accountant is something many business owners have been doing for a long time. And many accountants just accept the number. In addition to the obvious concerns, when it comes to selling the business, big problems can arise. How will the inventory be valued in the Purchase Allocations? And who is going to have to pay the various taxes on the larger amount? Business owners should give their accountants an accurate inventory value each year to avoid troubles at the closing table!

Tip #5
Business Owners Who Do It All!

Some businesses can’t survive without the owners trying to do everything themselves. And there are no key employees in place to help manage the operations. Buyers for businesses like these may be concerned if they themselves can’t replace the skills and experience of the owner. As a result, these businesses may have very little value to anyone else. Business owners who don’t delegate need to make a strong effort to have experienced key people in place before they ever try to sell their companies.

Tip #4
Burying Personal Expenses and Assets in the Business Financials

Minimizing tax liability is a strategy all business owners think about. But when it comes time to obtain financing or sell the business, buried personal expenses and assets can create a problem in determining the true cash flow. Buyers and bankers won’t always give credit to many of these items. As a result, the cash flow can be suspect. And when you apply a multiplier to determine the value of the business, the results can be disappointing. It is in the best interest of a business owner to show a healthy bottom line in the years preceding the sale of their business to get the highest price possible.