Pacific Business Sales Generates Million-Dollar Bonus for Commercial Plumber

Pacific Business Sales recently sold a commercial plumbing company for $1.4 million, surpassing a private equity firm to deliver a high cash payment at closing.

Irvine, California, United States – January 20, 2023 /MarketersMEDIA/ —

Using strategic, aggressive marketing, Pacific Business Sales recently secured and presented six offers to a highly successful commercial plumbing company, yielding a payout over $1.4 million higher than the deal the seller negotiated 18 months earlier. The seller received better terms and substantially more cash at closing.

When a top plumber attempted to sell his business to a private equity group for several million dollars, he discovered that the letter of intent (LOI) had less than favorable conditions hidden in the terms. In particular, the letter specified that the valuation included the businesses’ working capital and reserved a basket of funds for potential future liabilities. It also stipulated that the owner would buy back 20% of the stock in the new company. As a result, the owner’s expected cash payout at closing would be reduced by half. After pulling out of the deal, the seller began seeking better options. 18 months later, Pacific Business Sales signed on to broker the sale of his business.

Pacific Business Sales is a full-service business broker that makes inquiries, brings in buyers, negotiates terms, and secures financing for every sale. To find qualified buyers for the commercial plumbing business, the firm advertised on various business-for-sale websites such as bizbuysell.com, bizquest.com, loopnet.com, and their database with over 3,500 buyers. They also utilized non-public websites available only to private equity groups and sent out targeted email blasts.

After connecting with qualified prospects, including equity groups, entrepreneurs, and search funds, Pacific Business Sales was able to attract several attractive and competitive offers. Once the sales process began in earnest, they also prepared and presented a comprehensive, confidential information memorandum (CIM) to send to prospective buyers.

Pacific Business Sales applied dedication and expertise to bring the seller favorable terms and a high cash payout at closing. They expedited a thorough due diligence process and worked with attorneys representing the buyer, seller, and a Small Business Administration (SBA) lender to ensure a successful outcome. 

The winning bid included a stock sale that gave the seller a measurable tax benefit and generated a much higher payout than the rejected prior offer. The firm utilized IRS Section 338(h) to minimize the tax disadvantage of a stock sale by recapturing the depreciation. With the tax savings benefit accrued from the stock sale, the seller acquired a healthy cash payment toward his retirement.

Pacific Business Sales has a long history of connecting buyers and sellers looking to move onward and upward in life. To facilitate successful transactions, Pacific Business Sales applies knowledge gained from more than 20 years of experience selling a wide variety of businesses in several industries, including the aerospace, technology, manufacturing, and construction sectors. Their brokers work with buyers, sellers, and lenders through every stage of the sales process to ensure that all necessary procedures and transactions are carried out seamlessly. 

Being aware of the nuances that contribute to a company’s value ensures that they secure the maximum possible valuation for every business they serve. Because Pacific Business Sales upholds a high standard of ethics and uses lender-approved valuation methodologies, buyers can be confident they will meet the approval terms for receiving SBA financing. Both buyers and sellers trust the business transition specialists at Pacific Business Sales to broker mutually beneficial business transactions.

About Us: Pacific Business Sales is a team of experienced business brokers who sell small and mid-size California businesses. With a strong presence in Orange County, Los Angeles, San Francisco, Silicon Valley, San Diego, and the Inland Empire, their team represents owners and sellers statewide.

Contact Info:
Name: Pacific Business Sales
Email: Send Email
Organization: Pacific Business Sales
Address: 9891 Irvine Center Dr, Ste 200 Irvine, CA 92618
Phone: 949-200-6350
Website: https://www.pbsbrokers.com/

Release ID: 89088625

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