We know that selling your business will be one of the hardest things you will ever do. The M&A process can be difficult, demanding, and emotionally draining. At CRE Resources, LLC we pride ourselves on transparency in guiding you through the daunting decisions you face.
In the spirit of transparency, we’ve outlined our fee structure below as a general guideline. We’ve based the fees on a business’s annual revenue. However, many factors can influence the fees, such as the complexity of your industry and business, your business’s profitability, your expectation of the purchase price and timeline, your business’s desirability, potential buyer pool size, and how prepared you are for selling.
We are also selective in who we take on as clients because our team of expert M&A advisors offers you a dedicated, personalized service in the complex M&A process. While we’ve provided a general outline of our fees below, we tailor your fee structure to your business’s unique characteristics. If we choose to work together, your fees will be finalized and shared during our Client Engagement (Phase 1) meeting.
Phase 1: Client Engagement
- Preliminary Consultation Phone Call with Client
- Set up Client Portal and review initial research and information with Client
- Review of Business Plan and all Intellectual Property of business
- Review of Business Operation, Staffing, General Operating Expenses and other Key Business Metrics.
- Discussion of Business Sale Timing and Seller’s Expectations
Fees: No Charge
Phase 2: Business Assessment and Valuation
Take the first step with no obligations – no long-term commitment is required. Your assessment includes everything you need to plan your business disposition or acquisition, including our valuation and assessment services.
Timeline: 10 business days
Fees: $1,500
100% Credit: Decide to put your business on the market within 60 days of receiving your assessment and receive a 100% credit toward Step 2.
Services:
- Business Valuation Summary
- Recasting Business Financials - Business Key Metrics Worksheet
- Normalized Financials
- Sales Strategy
- Exit Plan
- Assessment Phone Review
Phase 2: Business Planning
Fees vary based on your industry and services required – for example, some businesses don’t need a teaser, financial assessment, or financial pre-qualification.
Timeline: 1-2 weeks
Services:
- Offering Memorandum (public facing information portal)
- Client Profile (finalize and summaries all key data, information and financial analysis of business.
- Recorded Seller Interview
- Financing Pre-qualification
- Pre-Sale Financial Due Diligence
- Summary of Intangible Assets, Tangible Assets, Intellectual Property.
- Level 1 & 2 Business Valuation
- Business Appraisal
Fees:
- Up to $1 million in revenue — $1,500 to $3,000
- $1 to $3 million in revenue — $2,500 to $4,000
- $3 to $5 million in revenue — $3,500 to $5,000
Phase 3 & 4: Marketing & Listing / Buyer Screening and Qualifications
Marketing packages vary based on your industry and services required. Marketing efforts can be updated, revised, or added at any time.
Timeline: 3 to 9 months on average
Services:
- Creating a Confidential Marketing Strategy
- Qualifying Potential Buyers
- Managing Preliminary Negotiations
Fees:
- Up to $1 million in revenue — $350 per month
- $1 to $3 million in revenue — $500 per month
- $3 to $5 million in revenue — $750 per month
Phase 5: Business Sale Transaction / Settlement
Along with your selected attorney, CRE Resources, LLC manages your closing to the point of final settlement date
Timeline: 2 to 4 months from accepting a letter of intent on average
Business Sale Commission:
- 10% of the first million in purchase price, plus
- 8% on the second million, plus
- 6% on the third million, plus
- 2% thereafter
