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Selling Service Business

Old 01-07-2019, 09:21 AM
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Hi All:

Looking for help and ideas on selling a service business, PM me if you can help me out, thanks.
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Old 01-07-2019, 04:20 PM
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PM sent.
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Old 01-07-2019, 07:03 PM
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Search fund
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Old 01-09-2019, 12:52 PM
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search fund? Not sure what that means. Thanks.
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Old 01-10-2019, 03:47 PM
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We're in a niche market with a lot of PE firms trying to buy companies like ours. I haven't had a call about "want to sell your business" since 2 PM today and probably 6 or 7 already this year. We're not for sale but if I were I would start by hiring a good business broker.
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Old 01-10-2019, 06:06 PM
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Originally Posted by johnr710 View Post
search fund? Not sure what that means. Thanks.
google can explain better - the first few hits include a Wikipedia page and Stanford Business School’s description.

basically - it’s a way for a driven, hands-on, ambitious young person to buy your company. Another way to put it is a one-man private equity shop. Typically someone 25-35yrs old who is finishing their mba at a good business school. They usually target service companies with recurring revenue valued at 5-10m (can be higher or lower of course). The seller is generally an individual who wants to cash out and retire, and doesn’t have a family member to give it to. The company is generally too small for a private equity firm to look at, too unsexy for venture capital.

The “searcher” raises a few hundred grand from investors ( rich retired folks, often alumni from the same business school) and uses it to spend 1-2 years looking for a company to buy. If the searcher finds a good target, he pitches it to the people who funded the search and they decide if they want to put up the money to buy. The “searcher” then buys the company, typically gets trained up by the seller and then runs the business with an eye towards long-term growth. The deal is typically structured for the searcher to “earn back” the company from the investors over 5-10 years through sweat equity and then it’s his and he continues to operate and grow it.

the friends I had who did it were veterans using business school to transition into the civilian world and not interested in the typical corporate life.
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Old 01-10-2019, 09:58 PM
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Originally Posted by johnr710 View Post
Hi All:

Looking for help and ideas on selling a service business, PM me if you can help me out, thanks.
depends on revenue, under 5mm, over 20mm, 50 and the industry you're in.
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Old 01-10-2019, 10:53 PM
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Originally Posted by mikefloyd View Post
We're in a niche market with a lot of PE firms trying to buy companies like ours. I haven't had a call about "want to sell your business" since 2 PM today and probably 6 or 7 already this year. We're not for sale but if I were I would start by hiring a good business broker.
what engineering discipline?
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