It is often said that in one’s personal life the most important financial decisions have to do with buying or selling a home. For a manufacturers’ representative, perhaps the most important decision in your financial life has to do with buying or selling a rep company. Some enter the rep business by either buying into or buying out an existing rep company. And upon retirement, the only way to benefit from the value of the rep company you’ve built is to sell it — sometimes to a family member, sometimes to an employee or employees, and sometimes to an outside individual or another rep company.
The process of establishing a value for a rep company and planning and executing the sale/purchase is, at best, inexact. It is often fraught with unexpected pitfalls, unintended consequences, and a significant probability of failure. There is little public knowledge available to guide this process, and the proper valuation of a rep company is beyond the capabilities of most business brokers, accountants, and attorneys.
For such an important financial decision, it makes sense that all parties involved take advantage of the relevant resources available in the due-diligence process. MANA members have access to a unique yet extensive array of resources to help them prepare for the successful sale or purchase of a rep company. These resources include:
Three MANA Special Reports devoted to the process:
- Valuing the Rep Firm
- The Valuation and Sale of an Entire Manufacturers’ Sales Agency
- Selling Part of Your Rep Firm to Your Employees or Partners
Five Agency Sales article reprints from buy/sell guru Mel Daskal in the member area of the MANA website:
- “Selling or Buying a Business”
- “Buy-Sell Agreements”
- “C Corporations”
- “S Corporations”
- “Limited Liability Companies”
The availability of knowledgeable MANA attorneys experienced in rep firm buy/sell transactions.
If you are anticipating buying or selling a rep company, it makes infinitely good sense that all parties avail themselves of the resources available; that includes buyers, sellers, their accountants, and their attorneys.
