Higher Prices When Using an Advisor

HIGHER PURCHASE PRICES RECEIVED WHEN USING AN ADVISOR

Research shows sellers represented by an experienced advisor receive higher purchase prices than sellers representing themselves. The results of a study sponsored by Amvest Financial Group, Inc. concludes a high probability that owners representing themselves in the sale of their company generally receive a lower price, less favorable terms, and experience more difficulty in negotiating a definitive agreement for the sale and for ongoing employment. The study examined over twenty transactions involving companies with sales between $5 million and $52 million. In most cases, the sellers represented themselves or relied on an excellent accountant or attorney, although one with little or no experience in selling privately held companies. The study concluded that the selling prices should have been between $500,000 and $8.5 million more than the price actually received.

The study also found that the actual structure of the transactions were less desirable to the sellers than structures that could have been negotiated on their behalf by an experienced advisor.

Some pretty good reasons to use an investment bank and even better reasons to use Amvest Financial Group, Inc.