Tired of looking for the right first business or add on acquisition?
Let ROI represent you as a buyer broker representative to help you find the perfect business, keeping your best interests in mind. We assist individuals and corporations looking for acquisitions.
Proactive Acquisition Search Services (“PASS”)
The goal of this program is to identify, contact, qualify and evaluate businesses for possible acquisition by our Buyer client, (Client). ROI Corporation will lead the search and make initial contact with companies who meet the initial criteria developed in conjunction with the client. ROI Corporation will assist in evaluating the businesses that meet the client’s interest, gather business information and facilitate meetings with business owners. ROI Corporation will also facilitate the due diligence process, eventual offers and purchase agreements.
We are seeking the proverbial ‘needle in a haystack’. That requires us to turn over a lot of hay.
ROI Corporation, through research and information provided by the Buyer, will prepare a series of introductory letters as well as a summary of the Buyer’s work experience and acquisition criteria, and Investment Profile, to be used in contacting the prospect list. The goal is to proposition those companies we feel should meet the Buyer’s general criteria of location, size and industry.
Initial contact is made via a personal letter; from ROI Corporation that describes the Buyer and propositions the prospect with a highly qualified, motivated and real Buyer. These letters are followed with seven (7) days with a personal phone call from ROI Corporation to verify receipt of the letter and to ask if the prospect has any interest in a possible sale of the business. These letters include the name and phone number of the Buyer or other descriptive information in order to impress upon the owner that the Buyer is highly qualified and properly motivated. Should the prospect call the Buyer directly, they will confirm that ROI Corporation is representing them in the process and ask that the prospect contact ROI Corporation directly with some basic information. If no direct contact is made with the prospect from the first letter and call then ROI will continue to attempt to make contact to obtain a level of interest in selling from the target company.
The PASS program removes the prospect’s concerns of confidentiality, the Buyer’s financial qualification and any obligation for them to pay a fee.
Proactive Acquisition Search Services (“PASS”) Frequently Asked Questions
Frequently asked questions include…
Do I have to pay the commission on top of the purchase price?
The Typical way we do this is to make an offer that includes the commission just as a buyer broker does in residential real estate. Remember that the buyer is the only one who brings money to the closing table. No matter who a broker represents the buyer brings the money to compensate the broker.
Why would a seller want to pay a commission to a buyer’s broker from his or her proceeds?
If the seller is going to sell a broker will typically charge a commission that is much more to represent him or her. It will also usually take around the national average of 9 months to sell the business taking a lot of the sellers time to meet with multiple buyers etc. By working with an ROI buyer the total commission can run 50% less and the time frame is shortened. Plus the seller knows the buyer is serious and qualified. This reduction in commission can allow a deal to go together which might not have worked if the seller was paying full “listing rate “ commission. This becomes a real win-win for both buyer and seller.
What if you do not find me a business in our agreement period?
That can happen but we are happy to expand the time frame and continue to work at the process provided the buyer is still qualified and motivated.
What if another broker has the listing I want?
ROI is a founder of the business MLS system in New England and is happy to co-operate with other brokers. In fact a key component of our buyer representation is reaching out to other brokers on a regular basis to see if they have a business that may be of interest to our buyer. We would only be compensated once in the transaction and in most cases accept the compensation offered by the listing agent.
What if I find a business opportunity on my own?
We will be happy to contact them and qualify , negotiate and bring the transaction through due diligence with you as we would any other opportunity. Remember that most of the effort in buying a business occurs between the agreement to buy and the closing date. It is in this 45 to 90 day period that financing, due diligence etc are completed as well as final negotiations on training, employment, premises leases and even pricing and payment terms etc.