Amerimark Capital Corporation

Investment Banking—Corporate Finance—Management Transition

To contact us:

Amerimark Capital Corporation

320 Decker Drive

Suite 100

Irving, TX 75062

Phone: 214-638-7878

Email: admin@amcapital.com

 

 

 

How to Prepare

“A well prepared sports team produces winning results. The same is true when selling your company”

¨ Financial Statements

      Prepare financial statements that illustrate true profitability and asset values. Many privately owned companies have higher than normal executive salaries, one time expense items and other adjustments that may not accurately reflect the true performance of your company. Asset values may be understated since traditional accounting practices reflect asset values based on cost.

¨ Capital Expenditures

      The basic rule is to operate your company in the ordinary course of business. Optional capital expenditures should be deferred to minimize debt, maximize cash and to allow the buyer to make the decision.

¨ Physical Facilities

      Prepare your facilities for visitors. A fresh coat of paint and a general clean-up will enhance a visitor’s first impression. Neat, orderly facilities imply a well run operation. The reverse is also true.

¨ Asking Price

      Know your asking price. A price range is usually the best approach. Asking the highest expected price usually discourages buyers. Busy executives do not like to waste time visiting what they view as over priced companies. Value increases in the minds of buyers with the investment of time. A professional representing you with limited authority is better equipped to handle this delicate issue.

¨ Terms of Sale

      Establish the general terms of sale you will consider. Some important issues are: 1) stock or asset sale, 2) Cash, 3) Notes, 4) noncompete and consulting agreements. The lowest price you will receive is usually all cash and the highest will be a combination of cash and some form of time payments.

¨ Forecast

      Prepare a realistic five-year forecast. The forecast should reflect operations under new ownership and considering the company will be operated like a public company.

¨ Documentation

      Clear, concise documentation that can be read in 15 minutes or less should be prepared. This documentation should answer the 20 to 40 key questions about your company. Business plans are usually inadequate.