Abraxas Business Services: Buyer Services

Abraxas Business Services works with buyers to find, negotiate and purchase a business. We work with three types of buyers, with a customized approach for each:

Financial buyers (typically individuals)

Strategic buyers (typically companies)

Investment buyers (typically Private Equity Groups or investors that put in place a management team)

The approach and scope of services provided for each type of buyer are tailored to their unique needs and situation.

When purchasing a business, it is very important that you take an honest assessment of how well the business fits your criteria. Abraxas has developed an evaluation tool for financial buyers to use to assess an acquisition. If you would like a copy of this evaluation tool, please send an email to dchambless@abraxas.biz

Financial Buyers

So you think you want to own your own business?

Abraxas Business Services will guide you through the process of finding and buying your business.

FACT: Most people think about owning their own business at one time or another during their career, but most never actually buy a business due to FEAR: Fear of the unknown, fear of the process, fear of purchasing the wrong business, fear of paying too much, or just plain fear of failure!

The way to overcome fear is to arm yourself with knowledge! Abraxas works in partnership with Richard Parker, a renowned national author and consultant, in developing our approach to buyer services. His book, How to Buy a Good Business at a Great Price is the definitive reference book on the subject, and provides the foundation for our buyer services. If you are serious about owning your own business, you need this book!

The disciplined approach presented in How to Buy a Good Business at a Great Price, and which we follow, consists of four critical steps:

Step 1: Educate and prepare fully for each stage of the buying process.

Step 2: Determine the type of business right for you and then focus your search.

Step 3: Negotiate all details to ensure that you put together a deal that makes sense today and down the road.

Step 4: Investigate every aspect of the business, the industry, the customers, the financials, the suppliers, the employees and the competition before you buy.

How Abraxas works with buyers:

Abraxas Business Services will spend time with you from the first phone call to understand your goals and help assess your options. If you're a candidate to buy a business, we'll help identify your interests and match them with industries and businesses that fit your skillsets and interests. With Abraxas representing you in the purchase of a business, you will:

Have a higher probability of actually buying a business

Have confidence that the business you buy will have been professionally examined and fairly represented to you

Strategic Buyers

Strategic buyers purchase businesses to support their strategic direction whether acquiring additional customer base, geographic expansion, new product or system capabilities, improved business functional capabilities, new facilities, or to strengthen business relationships.

Abraxas assists strategic buyers in articulating their strategy, and determining if certain types of acquisitions support the strategy. Based on the strategic direction, Abraxas assists client companies in identifying and qualifying acquisition candidates, and assisting in the negotiations of the purchase of the targets.

There are 4 critical steps we follow when assisting strategic buyers:

Step 1: Fully understand the strategic direction and how the acquisition supports the strategy.

Step 2: Identify acquisition targets that fit within the strategy, prioritize the list of targets, contact them, and develop short list of targets.

Step 3: Develop valuation assumptions and models, define negotiation approach and issues, craft deal structure, and issue a term sheet or a letter of intent.

Step 4: Conduct due diligence, validate valuation assumptions and strategic fit, negotiate purchase agreements, arrange financing, prepare the new company structure, and close.

When making a strategic purchase of a business, it is very important that you take a hard look at how well the business fits your acquisition strategy. Abraxas has developed an evaluation tool for strategic buyers to use to assess an acquisition. This evaluation tool should be customized to each unique situation. Please contact us if we desire a copy of this evaluation tool!

Investment Buyers

Investment buyers purchase businesses to support their investment objectives and criteria.

Abraxas assists investment buyers to identify the types of industries that fit within their investment criteria, and assist the client in identifying and qualifying acquisition candidates, and negotiating the purchase of the targets.

There are 4 key steps that Abraxas follows when assisting investment buyers:

Step 1: Fully understand the investment criteria including financial performance and returns, timeframes, industries, and management expectations.

Step 2: Identify types of industries that fit the criteria, identify target companies, prioritize and contact targets, and develop short list.

Step 3: Develop valuation assumptions and models, define negotiation approach and issues, craft deal structure, and issue a letter of intent.

Step 4: Conduct due diligence, validate valuation assumptions and investment criteria fit, arrange financing, and close.