(Philadelphia, PA) – An internal review of recent transactions completed by BMI shows that BMI averaged 4.6 offers per sale. Most strikingly, they generated deal values 42% better than the deals generated by the sellers before retaining BMI. Dave Clark of BMI said, “Clearly this demonstrates that business owners who utilize the services of experienced, skilled Brokers and M&A Advisors will come out of a business sale with significantly more wealth for their retirement or next venture.” The study also showed that the offers received varied widely, with the highest offers averaging 75% higher than the lowest offers.
BMI attributes this to their active buyer search process, which results in BMI reaching a multitude of potential qualified buyers from all over the country. Many businesses are sold privately between local competitors or thru one-off introductions from the owners’ accountant or attorney. While accountants and attorneys are important advisors to the process of selling a business, they do not typically reach out to the market and find multiple buyers and obtain multiple offers. Per Tom Kerchner, “In addition to confidentially reaching out to multiple buyers, firms like BMI are experienced in preparing and marketing businesses for sale. Many of our clients are at first concerned about confidentiality, but as they understand our process, they realize our first job is protecting them even as we generate offers.”
The review also showed that BMI-generated offers resulted in deals with significantly better terms, particularly percentage cash at closing. For example, BMI offers averaged 89% cash at close, while business owner-generated offers averaged 58%. BMI attributes this to the buyer search process and BMI’s knowledge of financing options and limitations for certain buyers.
About BMI Mergers & Acquisitions
BMI specializes in the sale and acquisition of privately held businesses. Our process is designed to be thorough, confidential, and attract a large pool of qualified buyers—the result: Maximum Value for business owners. Our professionals include certified business intermediaries, certified business brokers, holders of series 79 and 63 securities licenses, and licensed real estate representatives.
With offices in Philadelphia, Allentown, and Harrisburg, Pennsylvania, BMI is a member of the International Business Brokers Association, Pennsylvania Business Brokers Association, and the M&A Source.
Securities transactions are handled thru StillPoint Capital, Member FINRA, and SIPC.