Corporations for Sale Blog - The March Group

Business for Sale: Vacuum Pump Maintenance & Remanufacturing Company

The March Group currently represents a profitable government subcontractor engaged in the design and development of equipment for the US Department of Defense. The Company performs Reliability & Maintainability Analysis Safety Hazard Analysis, develops logistics support requirements, technical documentation/manuals and training documentation, as well as conducts the training required for these systems. They have expertise in developing robotic and tele-operated systems and its ability to realize substantial savings through predictive engineering further supports the Company’s position as a valuable partner.

To find out more about this business, visit its listing on Corporations for Sale.

Frequently Asked Questions on Corporations for Sale

Q: What is the price of the company for sale?

A: The March Group does not believe there is a single price appropriate for each of the companies we represent. Rather, each company has a variety of value dimensions depending on the characteristics of the buyer. A buyer who is able to realize business synergies by combining the client company with its own operation, or by eliminating duplicative expenses, may have a different value expectation than a buyer who would operate the business as a stand-alone entity. Furthermore, a buyer with access to lower-cost senior debt may have a different valuation than a buyer who would finance a purchase through higher cost mezzanine financing. The March Group recommends that each prospective buyer evaluate the acquisition opportunity according to its own particular business characteristics and goals, and price the business accordingly.

Closings – MetaLINK Technologies, Inc, LINK Investments, Ltd., and QualStar Communications, Inc.

The March Group is extremely happy to announce the closing of three deals: MetaLINK Technologies, Inc., LINK Investments, Ltd., and QualStar Communications, Inc. Congratulations go to Steve Dinehart for his tremendous efforts in working these three deals to a successful conclusion. Steve has been involved in the agricultural, financial, and consumer products industries for more than 20 years, serving in executive management, strategic planning, new product development, and sales/marketing roles. Steve’s attention to detail enabled him to keep all three transactions moving forward.

We are also greatly appreciative of the fine efforts of our Front End.

• The workshop was presented by Denny Luckritz.
• Paula Zuleger made initial contact with the client.
• John Ing and John Fraier performed the financial analysis, valuation and wrote the Confidential Business Review.
• The Capital Markets back-office included Linda Camacho, Mickie Bernard, Nikki Forbes, Kristin Brockfeld, Breyon Collins, Natasha Orr, George Cannon, Lishati Bailey, Tamika Gant-Charles, Kathleen Solomon, Linda Freyre, Terry McDonough and Deborah Walker.
• Carl Doerksen developed the buyer lists and Susan Kressevich made the follow-up calls to these buyers. Thank you all for your outstanding work.

Business for Sale: Provider of Professional Medical Case Management

The March Group currently represents a provider of professional medical case management services, specializing in addressing and minimizing workers’ compensation claims.

• Client base is primarily composed of insurance companies, third party administrators, and self-insured companies; concurrently managing approximately 200 cases
• Company operates from its headquarters in Pasadena, California
• The facility comprises 2,000 square feet and is leased from a third party
• Well positioned for continued growth with superior industry reputation and solid management team

The management team is confident that significant growth can be achieved via increased marketing efforts and geographic expansion. Their reason for selling is to pursue other interests.

If you are interested in purchasing this business, please visit the company’s listing on The March Group’s Corporations for Sale Web site.

You Too Can Be A Business Owner

The March Group, a leading, private mergers and acquisitions advisory firm specializing in the sale of middle-market companies, wants businessmen and women to know that if you have ever wanted to own your own business, you should seriously consider buying a company as a way to achieve your dream. Here’s why:

1. Buying is better than launching a startup.
Starting a new business from scratch can be time consuming and expensive. Many successful businessmen and women will tell you they failed once or multiple times before they finally made it.
But why fail at all? If you know the field your business is in, why not skip the agonizing startup phase and buy an established, profitable company?

With your new acquisition — a business with viable, working assets and a proven staff — you can immediately implement all those ideas you have wanted to put into practice and begin steering your company toward promising horizons of future growth.

2. Buying an existing business is better than purchasing a franchise.

Franchises may look tempting, but they tend to come with onerous corporate regulations and restrictions. You may not be allowed to open the franchise where you would like. The territory or location you are given may not be a profitable one; if it is, headquarters may allow another franchise to open close to yours, eating into your customer base and earnings.

If the franchise system is relatively new — and you're buying in early to get a good price — it may not have a proven business model. Hundreds of franchise concepts are launched every year, according to the Wall Street Journal, and many don't grow beyond several units before they “fade away.”

Don't you want a business where you are the boss? Why buy a franchise where a portion of your hard-earned profits are sucked away to pay for advertising that you only partially benefit from? With an existing, nonfranchise business, all of the assets are in-house — long-term employees, established profit-making processes, the great location(s), the proven market – and they are all yours. You run the show.

Best of all, once your existing business grows to a certain size, you can do something franchisees can't do: sell franchises of your own!

3. Buying a company is within your means.

You don’t have to be a billionaire to buy a business. Yes, it takes capital, some of which you will have to come up with yourself, but there are plenty of ways to get financing. Here are three:

(a) Use the seller's assets as collateral. When you approach banks and financial institutions for a loan, show them a list of the assets of the firm you intend to own.

(b) Buy co-op. Find someone with similar goals and interests and partner with him or her to share the costs of buying a business. You can always buy your partner out later, should you wish to.

(c) Secure an SBA loan. The Small Business Association is there to help potential business owners such as you. More details can be found at sba.gov. Loan and investor information is available through their SBIC program.

The March Group does not offer financing, but we may be able to connect you with companies and private equity groups that assist individuals and small businesses in obtaining financing or SBA loans. Please note, however, that some require a percentage of the loan amount as their fee.

4. Now is a great time to buy.

Interest rates are low and the economy is recovering. It's true that credit remains tight, but things are improving. According to a July 2009 survey conducted by the National Small Business Association, 53 percent of small-business owners took out a traditional bank loan over the last 12 months; that's up from 44 percent in December 2008.

The nonpartisan Congressional Budget Office projects that the U.S. economy will grow by 2.5 percent in 2010, 3.8 percent in 2011, and 4.5 percent in 2012–2013.

Get in on the ground floor now. Buy that business you've always wanted and position yourself to profit from rising demand as the consumer-driven engine of this economic superpower revs up to its full potential.

Jocks of OP, LLC Purchases Work & Well, Inc.

Lynn Von Hollander, Vice President, Capital Markets at The March Group, worked steadily to see that Jocks of OP, LLC completed the purchase of Work & Well, Inc. With over 20 years experience in the financial industry, Lynn was able to close this deal despite facing many challenges. In the past, Lynn has held ownership in four small to mid-size companies, two in the service industry and two in the banking & finance industry. Lynn's diverse business background and experience as an entrepreneur provides her with the necessary knowledge to understand the challenges involved in successfully developing, operating, and exiting a business.

Congratulations to Lynn and the following frontline employees who worked steadily to see that this transaction closed.

• Erwin Porges was the Senior Business Development Manager who initially placed this client in the workshop.
• The Workshop was presented by Carson Porter.
• The Business Analyst was John Abood who met with the Client and signed them to the Cornerstone Agreement.
• Paula Zuleger made initial contact with the Client.
• Jeff Keating and John Fraier performed the financial analysis, valuation and wrote the Confidential Business Review.
• The Capital Markets back-office included Linda Camacho, Mickie Bernard, Nikki Forbes, Kristin Brockfeld, Breyon Collins, Natasha Orr, George Cannon, Lishati Bailey, Tamika Gant-Charles, Kathleen Solomon, Linda Freyre, Terry McDonough and Deborah Walker.
• Sandy Mellon developed the buyer lists and Susan Kressevich made the follow-up calls to these buyers.
• Ian Joseph acted in a management capacity overseeing the deal transaction process.

Frequently Asked Questions on Corporations for Sale

Q: In which industries do you specialize?

A: The March Group does not specialize in any one industry. We advise an extensive inventory of North American, privately held businesses that generate up to $200 million in annual revenue in a broad range of industries. We have completed many deals in the construction, manufacturing, professional services, technical services and wholesale trade sectors. As a company, we present successful and effective business practices and methodologies when representing buyers, sellers and investors in a wide range of middle-market transactions.

Serial Acquirers Successful in their Acquisition Plans

Ted Rouse, co-head of global M&A for Bain & Co. Inc., has recently written a book entitled “Winning in Turbulence” (Harvard Business Press). In this book Rouse examines why “serial acquirers” are so successful in their acquisition plans, even during turbulent times.

Their secret? Instead of following the herd mentality and hunkering down and conserving cash during recessions, these successful serial acquirers actively look for deals. They know that investments made in today’s market will generate the greatest returns in the long run.

Abbott Laboratories (NYSE:ABT), Medtronic Inc. (NYSE:MDT), Danaher Corp. (NYSE:DHR) and Illinois Tool Works (NYSE:ITW) are a few of the companies that Rouse examines as successful serial acquirers. And there are others that also come to mind. And what traits do all of these firms have in common? According to Rouse they exhibit these characteristics in their acquisition strategies:

• Have a clear deal thesis that puts on paper the logic of the deal and the assumptions on which it's being pursued
• Conduct transactions that are relatively close to their core
• Avoid swinging for the fences ("The worst performing acquirers," says Rouse "are those that buy infrequently, and when they do, they do large transactions."),
• Buy throughout the economic cycle

As we have said before, smart money knows that now is the time to buy. Serial acquirers that are successful are following these principles in today’s market to expand market share in preparation for the next economic boom. You should begin preparing for the same boom.

If you are looking for more information around M&A’s, visit The March Group’s Corporations for Sale Web site!

Highly Profitable Dry Hop Producer and Distributor for Sale

The March Group currently represents a producer of 12 varieties of dry hops, four of which this company serves as the primary grower of in the United States. Additionally, the company grows wheat, seed grass and hazelnuts. This company’s products are sold to the beer brewing industry.

The company is comprised of approximately:

• 768 adjacent acres
• 245 acres is owned corporately, 250 acres is leased from the shareholders, and the remaining 273 acres is leased from third parties

• Facilities include:
• Hop drying and baling facilities (approximately 1.5-million-pound capacity)
• Cold storage
• Two homes (including a luxury four-bedroom home)

Due to its strong reputation and excellent customer relationships, the company has benefited from strong sales growth in recent years. FY 2009 sales for this hop merchant are projected to be approximately $36 million on over five million pounds of domestic and imported hops. Furthermore, more aggressive business development efforts and acquisition of additional acreage present exciting areas to pursue immediate growth for more aggressive management through the injection of capital and human resources.

If you are interesting in acquiring this business, or would like information on other acquisition opportunities, visit The March Group's Corporations for Sale.

Frequently Asked Questions on Corporations for Sale

Q: I want to learn more about a March Group acquisition opportunity that I have seen advertised.

A: To be eligible to receive more details on the opportunity, including the Confidential Business Review, we require that you register as a buyer via our Corporations4Sale.com Web site and submit a Confidentiality Agreement (CA) corresponding to the opportunity of interest.