When it comes to transactions between buyers and sellers of companies, the vast majority of business owners are represented by some sort of third-party intermediary, such as Sigma Mergers & Acquisitions. Most of these sellers have never sold a company before, and before they attempt to make what will likely be the biggest financial decision of their lives, they want to ensure they have as much qualified help as possible.
So why don’t more buyers have that same representation? Buyers are also likely acquiring a business for the first time while making the biggest financial decision of their lives. However, in our experience, less than 5% of the businesses we’ve helped sell were purchased by buyers with their own representation assisting them.
That’s why Sigma Mergers & Acquisitions offers three different buy-side representation programs to people who feel like they might want some assistance at some point in the purchasing process. Our buy-side representation programs are built around our proprietary DRIVE-5™ buying process.
We call this “Mid-Stream” because we are being brought in at some point during an acquisition process that is already underway. In these cases, buyers have already completed the Discovery phase of the process, and possibly the Research step as well. But when it comes to moving forward, a buyer may not know exactly where to go next. In this scenario, we step in wherever a buyer needs us to start – whether it be valuating the company, preparing a letter of intent or offer sheet, preparing a due diligence checklist or negotiating the purchase agreement - wherever a buyers needs us we can step in and help carry the deal across the finish line. The fee for this type of representation includes an upfront retainer of $1,995, which is then applied to a commission amount owed at closing. The commission will be determined based on the size of the business.
Our Full Representation program incorporates everything we provide with the Mid-Stream arrangement in addition to having us handle the Discovery and Research stages of DRIVE-5™. This level of representation is really for the buyer who wants us to provide A-to-Z service, including all of the legwork associated with searching for and identifying potential business acquisition targets for you. If you are a potential buyer who is too busy to spend time searching for businesses to buy and you simply want those applicable opportunities served up to you, then this would be the representation level for you. The fee for this program includes an upfront retainer of $5,000, which is then applied to a commission amount owed at closing. The commission will be determined based on the size of the business.
Customized Marketing Representation
Some buyers know exactly what they want, but it’s something that’s not available on the market. If you are a potential buyer with very narrow acquisition criteria, such as an existing company looking for an add-on business, Sigma Mergers & Acquisitions will customize a direct marketing program tailored specifically to reach businesses that fit your needs. This is a representation program that’s not for everyone – only those buyers who need assistance reaching out to businesses to inquire whether or not they would be interested in selling. Then, once a suitable acquisition is identified, we will continue to manage the process through closing. The fee for this program includes an upfront retainer of $8,500, which is then applied to a commission amount owed at closing. The commission will be determined based on the size of the business.
"Sigma proved to be an enormous asset is helping us consummate a deal with the sellers that was mutually beneficial to all involved."
- Marcus Bodet, acquired Resource One, Incorporated
"We were lucky be have Sigma on the other side of the table. Without their creativity and guidance, this transaction would not have closed."
- Adrienne Hamblin, acquired PerWess Co.
"Sigma's online NDA system and video presentation made it easy to look at a business from 500 miles away. Before I even came to Dallas I knew I wanted the business."
- Ken Pierce, acquired L & L Pro Pac
Sigma M&A LLC: 18170 Dallas Parkway, Suite 203, Dallas, Texas 75287
Dallas Business Broker, Mergers & Acquisitions Dallas / Fort Worth / Texas