Business Deals & Sydney Acquisitions
Trinity Financial Management is open to business acquisitions in Sydney. The deal structure and requirements that is sought is as follows:
The business to be Acquired
The business to be acquired would need the following attributes:
- To be running profitably
- To be fully staffed operationally
- New owner requirements to be management, office and administrative tasks only (no specializations such as engineering, specialized trades etc.)
- Set of accounts (ideally audited) along with a few meetings on how the business operates, review the accounts etc.
The Deal Structure
In buying the business, Trinity Financial Management is seeking to acquire your business in the following format (to be negotiated in more detail of course):
- Owner has the option to retain a silent investor to continue receiving ongoing income from the business (i.e. the owner doesn’t have to give up all of their hard work and income with the sale of the business) In essence, keeping say 10% or 20% to provide dividends ongoing.
- Trinity Financial Management to acquire the remaining percentage of the business as majority owner.
- The consideration for the acquisition (payment and deal offer) to be a portion of cash, plus vendor financing over 3 – 7 years (to be negotiated).
What are the previous owner benefits?
Keep profits coming in via dividends. If the company grows, you will continue to reap the rewards.
Receive an upfront cash payment for the sale of the business (a portion paid in cash and a portion paid in vendor finance)
Receive ongoing payments for the sale of the business (the vendor finance portion)
Why would I sell my business this way?
A faster, smoother option (so you can move on with your life)
Selling a business can be challenging. Many business brokers seek to get the highest value for you, however the true market value often isn’t reflected, leading to a long selling process time and often many businesses do not sell at all. A huge percentage of businesses the hit the market do not proceed to sale. The time and uncertainty in selling a business can be stressful, especially when you are looking to retire or move onto something that holds more value for you. The deal structure is also likely to be somewhat rigid as the business broker will want to simply close the deal, make the money and move on.
Introduce Flexibility
You’ve worked hard on growing your business, so why give it all up completely? Of course, some people just want to be done with it and never want to hear about it again. I know that many smart investors would prefer to retain an income from their hard work, and simply step away from the responsibilities that running a business hold.
Keeping cash flow from your business is a great way to retain a lifestyle and take away the pressure of living off capital.
The vendor finance option will also provide ongoing payments from the sale of the business for several years.
Why Sell to Trinity Financial Management?
Trinity Financial Management is a company specializing in personal investment and trading with investment expanding into business acquisition (small scale private equity).
The owner, Michael Mosley, has a diverse skill set in the space of investing and finance, marketing, accounting, information technology and system integration along with management and communication skills to keep teams strong, productive and happy.
Efficiency and growth will be a focus, to help the business run smoother and optimize staff skill sets to new growth oriented applications once manual tasks have been minimised and automated.
Your input will be highly regarded where you would like to stay in touch. Letting og of the reigns can be really tough, and your team are highly valued so you can have the option to stay involved when you like.