The BishopKnight Group LLC.
M&A FAQ
What is the difference between a Business Broker and a Finder?
A Business Broker is a licensed agent registered with the state department of real estate. They act as fiduciaries, representing principals in negotiations and due diligence. In contrast, a Finder is not required to be licensed and does not act as an agent. Finders primarily facilitate introductions between parties and often have industry-specific expertise in the M&A marketplace.
How is confidentiality protected in transactions?
The BishopKnight Group LLC ensures confidentiality by requiring all qualified prospective buyers, sellers, and third-party financing sources to sign confidentiality agreements. Only preliminary summary information is shared initially, with more detailed disclosures made only as necessary.
What is required during due diligence?
Due diligence involves verifying all representations made by the seller that form the basis of the offer. It begins after an offer is accepted and a letter of intent is executed. Buyers will thoroughly review operational, financial, and other relevant records. Sellers should expect buyer representatives to spend time at their corporate headquarters to complete this process.
What about personal expenses that the seller runs through the business?
For private companies with significant personal or non-recurring expenses, it is appropriate to calculate an adjusted EBITDA and present recast financial statements. These statements should reflect normalized financial performance alongside actual numbers. Each adjustment must be clearly disclosed, explained, and justified.
What is the difference between an Asset Purchase and a Stock Sale?
In a Stock Sale, the buyer purchases the entire corporation, including all assets and liabilities.
In an Asset Purchase, the buyer acquires only specific core assets, with liabilities negotiated separately.
It’s essential to consult a qualified tax advisor and transactional attorney before finalizing any agreements.
Do we know a buyer or seller?
The BishopKnight Group LLC maintains relationships with active buyers and sellers across industries such as aviation, automotive, healthcare, tech, and more. If we don’t already have suitable candidates, we conduct targeted searches to identify and qualify new prospects.
How long will it take to sell or buy?
The process typically takes 90 to 120 days from the decision to sell or buy to the introduction of qualified parties. This includes valuation, prospect qualification, confidentiality agreements, due diligence, and negotiation of the purchase agreement.
How much is my company worth?
Companies often sell within a range of 2.5 to 5 times normalized EBITDA. Larger, highly profitable companies may command a premium, while smaller or less profitable ones may sell at a discount. A genuine valuation requires a detailed review of financial and operational data.
A Business Broker is a licensed agent registered with the state department of real estate. They act as fiduciaries, representing principals in negotiations and due diligence. In contrast, a Finder is not required to be licensed and does not act as an agent. Finders primarily facilitate introductions between parties and often have industry-specific expertise in the M&A marketplace.
How is confidentiality protected in transactions?
The BishopKnight Group LLC ensures confidentiality by requiring all qualified prospective buyers, sellers, and third-party financing sources to sign confidentiality agreements. Only preliminary summary information is shared initially, with more detailed disclosures made only as necessary.
What is required during due diligence?
Due diligence involves verifying all representations made by the seller that form the basis of the offer. It begins after an offer is accepted and a letter of intent is executed. Buyers will thoroughly review operational, financial, and other relevant records. Sellers should expect buyer representatives to spend time at their corporate headquarters to complete this process.
What about personal expenses that the seller runs through the business?
For private companies with significant personal or non-recurring expenses, it is appropriate to calculate an adjusted EBITDA and present recast financial statements. These statements should reflect normalized financial performance alongside actual numbers. Each adjustment must be clearly disclosed, explained, and justified.
What is the difference between an Asset Purchase and a Stock Sale?
In a Stock Sale, the buyer purchases the entire corporation, including all assets and liabilities.
In an Asset Purchase, the buyer acquires only specific core assets, with liabilities negotiated separately.
It’s essential to consult a qualified tax advisor and transactional attorney before finalizing any agreements.
Do we know a buyer or seller?
The BishopKnight Group LLC maintains relationships with active buyers and sellers across industries such as aviation, automotive, healthcare, tech, and more. If we don’t already have suitable candidates, we conduct targeted searches to identify and qualify new prospects.
How long will it take to sell or buy?
The process typically takes 90 to 120 days from the decision to sell or buy to the introduction of qualified parties. This includes valuation, prospect qualification, confidentiality agreements, due diligence, and negotiation of the purchase agreement.
How much is my company worth?
Companies often sell within a range of 2.5 to 5 times normalized EBITDA. Larger, highly profitable companies may command a premium, while smaller or less profitable ones may sell at a discount. A genuine valuation requires a detailed review of financial and operational data.