Selling or Acquiring a Business Is Too Important to Navigate Alone
If you have been approached by a buyer, are considering acquiring another company, or are ready to move beyond preliminary conversations, 712 can help you understand the financial realities of the transaction and move forward with confidence.
If the business has more than $7 million in annual revenue or sales, we can help.
You’ve Been Approached by a Buyer or you decide to sell
You need to understand what the offer really means, what your company may be worth, and what financial issues could affect the transaction.
You Want to Acquire a Business
Before closing, you need experienced financial diligence to assess earnings quality, working capital, risks, and operational trends.
You’re Moving Past Basic Talks
When conversations become serious, the process quickly becomes more technical. We help bring structure and clarity to the next step.
What Is My Business Worth?
Most business transactions fail due to differing views of valuation. Generally, value is determined by calculating earnings before interest, taxes, depreciation, and amortization — EBITDA — and applying an industry-specific valuation multiple.
While market valuation multiples are set by the market, determining recurring EBITDA requires deep merger & acquisition experience and expertise. What will a buyer accept? Are deal considerations missing? Errors have a valuation multiple effect.
A business with $20 million of annual revenue and $3 million of EBITDA, with an industry valuation multiple of 5x to 6x, has an implied selling price of $15 million to $18 million.
Why Use a Professional Transaction Services Firm?
Many business owners already work with an accounting firm for month-end closes, quarterly financial support, or tax preparation. While local and regional accounting firms often represent they can assist with your M&A transaction, they rarely possess the required expertise.
In the M&A arena, deal experience, combined with a detailed approach, drives value. Highly compressed timelines prevent the reversal of mistakes. In the example above, a $100k error in the calculation of recurring EBITDA can impact cash-at-close by over $500k.
Quarterbacking the Deal Process
712 also helps clients connect with trusted deal professionals when a transaction requires specialized support beyond financial diligence. On an ‘as-needed basis’, we can introduce you to proven experts possessing the following transaction expertise.
Legal Diligence
Contract review, legal exposure assessment, and Purchase & Sale Agreement support.
Investment Banking
Support for marketing the business, identifying buyers or sellers, and managing negotiations.
Tax Diligence & Structuring
Specialized support when transaction complexity or post-close tax planning requires it.
Formal Business Valuations
Valuation support when required for tax filings, audits, or specific transaction scenarios.
Ready to Discuss Your Situation?
Start with a confidential conversation. We’ll help you understand where you are, what questions matter, and what the next step should look like.
Submit an Inquiry