If you are ready to sell your service business, it is important to have an experienced M&A advisor in your corner that has direct experience in your industry.
Keystone Business Advisors specializes in the sale of service businesses located in Southern California.
We have sold over 100 service-based businesses and have developed relationships with many of the top strategic and private equity groups who are interested in acquiring service-based businesses.
The service business category is extremely broad ranging from B2B to B2C or from an accounting practice to food service.
Service businesses typically have few assets compared to product-based businesses such as manufacturing.
This means that a buyer is purchasing mostly intangible assets.
As a result, your buyer will be looking at the future cashflow streams to establish value. It is often critical that your customer and business relationships are transferable and that your key employees will stay after closing.
Overcoming Service Industry Challenges
Since service business customers don’t buy something physical, the benefits receive may not be immediately obvious. It’s very important for service businesses to distinguish themselves from the competition. This can be achieved through the superiority of your services, but also through the quality of your employees. The next time that your customer needs the service that you offer, he or she will be thinking about the total positive experience with your company.
A key component that buyers are looking for in a service business is recurring revenue. The increasing importance of the recurring revenue model reflects a shift in buying preferences for both businesses and consumers. Service businesses with recurring revenue are attractive to buyers because this establishes a regular, predictable income stream as long as the customer continues to use the service.
A sample of the services companies we handle include:
- Business services
- Consumer services
- Accounting / CPA practices
- Insurance services
- Property management
- Repair & maintenance
- Environmental services
- Alarm monitoring & security systems
- Remediation services
- Engineering services
- IT services
- Staffing services
- Landscape services
- Equipment rental
- Facilities services
- Cleaning & Janitorial services
- Consulting services
- Pest Control
- Fitness centers
- Call centers
- Automotive services
How to Sell a Services Company
While the typical services business broker may take on dozens of projects at a time, we take a very different approach. In contrast, each M&A advisor at Keystone Business Advisors works on five or less projects at a time. Focus and determination produces optimal results when it’s time to sell a services business.
At Keystone Business Advisors, we strongly believe in doing whatever it takes to find the right buyer and negotiate the best price and terms possible. The moment you state, “sell my services company,” we begin our comprehensive, results-driven marketing program. We accomplish this through our comprehensive marketing program, which starts with a 20-60-page Confidential Information Memorandum we prepare to provide a comprehensive overview of your business and highlight its value drivers, competitive advantages, and growth opportunities.
You will find that Keystone Business Advisors uses all its resources to find the best possible buyers for the businesses we work with. In contrast to a traditional business broker in Los Angeles, we use a tactical approach to target strategic and financial buyers, as well as private equity buyers. We draw upon our database that contains thousands of qualified buyers and focus on the ones who are most qualified and have the highest likelihood of completing a transaction. Keystone Business Advisors utilizes an investment banking style marketing approach, but do not charge any retainers. Our fees are 100% results based, which is based on the closing of the sale of your business.
Sell Your Services Business with Keystone Business Advisors
We will face and overcome any challenges that may arise during the sales process. Our decades of proven experience mean that we know what it takes to sell your services business in a professional and hassle-free manner.
We know that you have sacrificed a lot to build your business, and you deserve a team with the experience and knowhow to get the job done right.
Refer below for a sample of service business transactions we have recently completed.