The ability to acquire loans for buyers for business acquisition has been a major issue since the onset of the country’s credit crisis.
Dallas, Texas (PRWEB) November 03, 2011
Mergers & Acquisitions and business broker veteran Bill Whitehurst has adopted a teamed-oriented approach to dramatically enhance his ability to secure buyers for business acquisition. Whitehurst also recently announced a positive outlook for business owners who are looking to sell their company within the coming year.
Whitehurst—president of Whitehurst Mergers & Acquisitions has teamed up with an experienced loan broker, and the approach is serving his clients well. “This two-man team approach has improved my listing-to-closing ratio the past two years to 85 percent compared to an industry average of less than 40 percent,” he said.
The ability to acquire loans for buyers for business acquisition has been a major issue since the onset of the country’s credit crisis. Whitehurst advises business brokers and their seller clients to "work backward" in looking at sale prices and deal structures to ensure their numbers match the bank’s requirements for Small Business Administration and conventional loans. He explained: “Prior to the credit market crisis, brokers and buyers could work around some bank requirements such as not having owner financing in the sale and large customer concentrations of the business being sold. In today's lending environment, these and other issues have to be factored into the business price opinion and deal structure to be in line with current banking parameters before the business is even offered on the market.”
Whitehurst brings a no-frills style to business brokerage. He does not require any up-front fees or retainers; instead, he opts to get paid at closing. He is also very careful and candid when offering advice. “I will not tell a business owner or future client what I think he wants to hear, but what my brokerage experience tells me,” he said. “The most valuable asset I have to offer my seller clients is my brokerage experience and my straightforward, honest approach.”
Whitehurst uses his extensive experience to focus on representing business owners as his core activity. Specializing in the seller side gives him time to provide the best possible service to clients, including personalized attention, customized solutions and helping determine what a business is worth. Whitehurst was an entrepreneur for more than 25 years before becoming a business broker. That ownership experience helps him understand the complexities of business development. It also enables him to truly understand and express the importance of goodwill to prospective buyers. “Because of my ownership experience in selling my own companies, I can empathize with the owner and what he or she is going through in the selling process,” he explained. “This understanding puts me in a better position to successfully represent owners in the sale of their firm.”
In terms of his 2011-2012 outlook for owners looking to sell their business, Whitehurst is very optimistic. He says the outlook remains good if the company is performing and the company’s numbers—sales and profits—are trending upward. It also helps if key managers and employees remain with the business after the sale and there are managerial tools in place. For instance, if a formalized written marketing plan, procedures manual and training manuals are being followed, it gives the buyer the perception that there is a solid infrastructure in place. In addition, owners need to be flexible in the deal structure surrounding the sale.
“If company numbers have remained up, now is a great time to sell due to the scarcity of good business offerings on the market,” Whitehurst said. “There is a pent-up buyer demand for solid business offerings presently due to many businesses not being able to sell due to poor performance and the ailing economy.”
Bill Whitehurst has been engaged as a Texas business broker for the past 15 years and has more than 100 successfully closed transactions. He has both MBA and BBA degrees and is a certified Business Intermediary with the International Business Brokers Association. For more information about Whitehurst’s business brokerage services, please contact him directly at (972) 238-0700.