Mergers & Acquisitions






 "M&A 101" AT E.B.B.O.C.


Empire Business Brokers of Chicago Mergers & Acquisitions specializes in the ownership transfer of middle market companies.  We offer a range of services that include mergers, acquisitions, business sales, management buyouts, restructuring and debt/equity placement.


The primary purpose of the firm is to provide a national and international service that matches buyers and sellers through our wealth of contacts in the professional, corporate and investment communities.  We have membership in a number of associations including the world’s largest international organization of experienced merger & acquisition intermediaries representing the middle market.


At E.B.B.O.C.We will:


·         Maintain Confidentiality!

Without it, your business may be at risk.  It is our greatest concern that we maintain confidentiality throughout the sales process.


·         Present the Business!

Your business must be packaged properly and presented at its very best.  Our experienced intermediaries know precisely what buyers emphasize in determining value and will prepare a comprehensive acquisition opportunity “prospectus” to assist qualified buyers with their reviews.


·         Accomplish the Goal!

Professional, Persistent, Driven, Creative… characteristics essential to the sale of your business.  No one has to buy a business!  We make it comprehensible; we overcome obstacles; we tackle all problems.


·         Attract a Strong Buyer Base!

We market aggressively to attract a group of qualified purchasers locally, nationally and internationally through our networks and affiliations, and through discreet direct and indirect marketing initiatives.








There are a number of common valuation methods used to determine market value.  They include:


1.           Asset Based Methods

2.           Earnings/Cash Flow Based Methods

·         Capitalization of normalized after tax earnings

·         Capitalization of after tax discretionary cash flow

3.           Cost of Capital and Required Equity Method

4.           Industry Specific Multipliers

5.           Rules of Thumb

6.           Referencing Similar Private Transactions

7.           Flooded Market killed the Vanilla Box comparison in the 2008 World Crash.


Empire Business Brokers of Chicago will utilize the valuation that best reflects the Market Value of your business.


Before offering a business for sale, it is important for business owners to understand the differences between “Fair Market Value” and “Market Value”.


Fair Market Value is a term defined by various valuation services as:


The highest price available in an open and unrestricted market between informed, prudent parties acting at arms length and under no compulsion t act, expressed in terms of money or money’s worth.


This valuation technique reflects the value of a business to a business owner, and is useful for insurance purposes, or some shareholder disputes, or certain litigation proceedings.  The valuation reflects perfect information and a perfect market, and does not always reflect the open or actual market, today's market.


Sometimes significantly different from fair market value, Market Value reflects the final anticipated selling price that is actually in today’s market, this is where most owners go wrong , second guessing the current market or the business value.


When offering a business for sale in the open market, most experienced business sellers recognize the importance of offering a business  for sale at or near “market value”.  Grossly overpricing a business, which is sometimes the case when relying on “fair market valuation”, can deter the best buyers from committing to an offer to purchase and can often result in failure. And since 2008 this current market needs to be relearned , retested  by brokers & owners, this is where all the bodies are burred & at the end of the day, the broker is the CEO in most these situations not the owner, it's the owners decision to move forward after multiple opions are on the table..


As experienced practitioners in the sale of businesses, Empire Business Brokers of Chicago has a comprehensive understanding of the market and is, therefore, able to estimate the Market Price at which businesses will sell based on experience, rather than relying on textbook formulations. 




Ninety-five percent of all business transactions fall into one of the four categories:



·         Motivated by future earnings potential risk reduction, or overhead consolidations.

·         Economic considerations are evaluated; however, reason for acquisition is not purely economic.

·         Decision to buy is prompted by factors such as growth, industry trends, complimentary products, distribution, management, proprietary goods and/or services.



·         Usually, a larger public or private firm.

·         Tend to review several investment options.

·         Employs “schooled” approach to evaluation, with an emphasis on future earnings.

·         General Diversification is the focus.

·         Places primary emphasis on capitalization of earnings and the ability to finance the purchase.



·         Usually a higher net worth individual or private investment group.

·         Primarily focuses on income and the ability to build equity.  There will also be a need to leverage the purchase price.

·         Major emphasis placed on historic and current conditions.

·         Their perception of risk is likely to be higher than the Strategic or Corporate style purchaser.



·         Usually from within the same or affiliated field as the company being purchased.

·         Primarily focuses on the fixed assets of the business or the market share being acquired.

·         Presumed that they are bringing virtually all the value to the enterprise.

·         Lowest prices historically come from these purchasers unless significant synergies are demonstrated to the buyer.




The experience and expertise in resources available to Empire Business Brokers of Chicago allows a successful response to the specific needs of each purchaser type.  The ability to identify the buyer who will pay  maximum value is of utmost importance, and ultimately the goal of Empire Business Brokers of Chicago.



Empire Business Brokers of Chicago utilizes its extensive professional community networks, seminars and targeted direct marketing to build a comprehensive database of qualified purchasers.  Empire Business Brokers of Chicago is affiliated with numerous networks and associations dedicated solely to the ownership transfer of privately held businesses.  These include:







THE M & A SOURCE     Over 100 Mergers & Acquisitions specialists concentrating primarily in the middle market.


                      A network of leading Mergers & Acquisitions specialists across Canada.


In addition to these networks, Empire Business Brokers of Chicago  corresponds

directly with over 8,000 professional advisers and qualified purchasers

across the United States, Canada & the middle east.


A comprehensive marketing strategy is developed for each engagement, and

approved by the principal(s) of each firm.  Empire Business Brokers of Chicago

Marketing Department, with staff dedicated exclusively to targeting

and identifying qualified purchasers, will then work closely with Empire

Business Brokers consultants in implementing the various selling



When suitable buyers have been identified, introductory information is

Presented in a generic and confidential form.  Signed confidentiality

agreements and references are requested.  Once reviewed and qualified, the

prospective buyer is then invited to study the confidential acquisition

opportunity document.


Next Step, enter into a mutual agreement to reach your expansion goals.




Empire Business Brokers of Chicago

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