Sunbelt Business Brokers of Pasadena (SBBP) is a Southern California based firm specializing in business mergers, acquisitions, and valuations. It is part of the worldwide Sunbelt Network of over 300 offices. Sunbelt specializes in small and medium size privately held companies with a particular emphasis on manufacturing, distribution and select business-to-business service industries. Sunbelt is dedicated to providing clients with confidential and professional representation and assisting them in achieving their business objective. For more information, log on www.sunbeltpasadena.com.
Beverly Hills, CA
This home-based IPO Finder business was taught to the seller by a very successful Wall Street friend and it has made the seller a multi-millionaire in only a few years, now he is thinking about retiring. The way the business works is that the seller gets the contact info each month by e-mail of companies that are candidates for going public. The seller then contacts each company offering to connect them with the IPO team they need - lawyers, auditors, investment bankers and investor relations firms. Instead of paying for these valuable connections in cash the company gives the seller a small portion of the IPO stock that he can sell after the company goes public (the process takes about six months or so). The seller only works at this about 10 hours per week which mostly consists of sending e-mails and business documents to the various parties all over the country. The friend who taught the seller this business makes about $10 million profit in a good year, in a bad year maybe $2 million profit. To be successful in this business the buyer should be able to read business plans and understand balance sheets, P&L statements. Having operated your own business is a plus. If you have ever raised money for a business that is helpful experience. There is no limit on the potential income from this business. The person who found Steve Jobs in his garage and introduced him to the team that took Apple public made a fortune. There are over 15,000 public companies and most of them nobody ever heard of. So even if a very small company goes public it is possible for you to get paid $250,000 or more in stock. Without future profit sharing the price for the seller's business would be 5x last years profits of $1 million ($5 million), with future profit sharing the price is $95,000 for the right person (deals now in the pipeline are excluded).
Please dial extension 512 if you call us at (800) 985-4939! Thanks!
This is not an ongoing SaaS model, however, there are over 1,500 clinics that have made a purchase from the Seller in the past, so a Buyer who is savvy at business development should be able to re-market additional services and training programs to prior clients. Includes 10 different domains, over $110,000.00 in retail value program and training packages as well. All intellectual property is owned by the Seller, and included with the sale. Revenue streams are diverse, and include online training programs, on-site training, directory listings, training supplies and certification testing revenue. At its peak in 2005, this company did $910k in sales as an onsite consulting operation with a max. of 16 employees. '09 sales were $137k, '10 sales were $115k, and the only reason why 2011 and 2012 numbers are low is that the business became a part-time endeavor for the Seller. Rather than just wind things down he has decided to transition the business to new ownership and hopefully a different buyer focused on the brand can restore the business' former sales history. Margins are juicy at 50-75+%, this is a very low-overhead, high net profit enterprise. The content has been created, all that is needed is someone that can focus on sales. Buyers do not need much activity in order to secure their initial investment back quickly. NDA is required to secure preliminary due diligence package on file with Broker.
Ideal scenario is one large player or several small players combine to bring in the remaining $90MM of assets under management (AUM) by the time 1/1/13 rolls around; then the clock can start for the firm to have over $100MM in AUM come 1/1/17. This threshold is critical because once that amount is maintained for at least 4 years the larger institutional players in the industry will be more likely to take a look at this fund and growth can occur far more rapidly. Seller has flexibility in terms of deal structure and equity transferred to the strategic partners, however, this is not a simple acquisition by any Buyer who has capital.
Any acquirer will be required to bring in at least $15MM in AUM within the first 2 years, or a replacement partner will be brought in and the initial purchase price will be refunded for the transfer of equity to the replacement partner. There will be no claw-back on profits obtained throughout the duration any buyer owns part of the company. Purchase price of $1,500,000 is for complete buyout of Seller, however, the minimum commitment needed is $100,000 for the first strategic partner with the understanding they will bring in at least $15MM in AUM within the first 24 months. As more partners or a higher percentage of the company is sold off, the higher the price is for the remaining portion of the subject firm.
A litany of disclosures, spreadsheets, charts, due diligence documents, and all forms of presentations are on file for review for qualified Buyers who sign an NDA and are pre-screened by Ace Business Brokers as being a qualified buyer for this acquisition. If you cannot bring clients or AUM to this vehicle, please do not waste your time per Seller's very strict and specific directive.
Los Angeles County, CA
Culver City, CA
Van Nuys, CA
San Fernando Valley and Beverly Hills, CA
Thank you for signing up for the BizBuySell bulletin.
Sign up for the BizBuySell Bulletin and get advice on:
You can opt out of the BizBuySell Bulletin at any time.
Get free alerts via email when new businesses are listed matching your California Businesses search criteria.