Services

Commercial Real Estate Services

TPG Commercial was launched in 2012, in response to a growing need for specialized commercial real estate services to address current economic conditions. During the different life cycles of companies, their products and services, decisions about commercial real estate becomes an integral part of supporting growth, controlling costs and or eliminating waste / redundancies. With over eight years of transactional experience, serving a five county area, TPG Commercial is able to use a practical approach to meet each client’s unique needs. The following is a brief menu of some of our capabilities and services.

  • Corporate Representation Services
    • Investment Services
    • Sale Leasebacks
    • Refinancing
    • SBA / Commercial Loan Modifications
    • Transaction Management
    • Lease Administration
    • Budgeting / Forecasting
    • Asset Dispositions

  • Buyer Representation
    • Project Management
    • Due Diligence
    • Consulting Services
    • Conditional Use Permits
    • Zoning Changes

  • Tenant Representation
    • Relocation / Expansions
    • Consolidations
    • Lease Renewals (Blend/Extend)
    • Lease Administration
    • Early Lease Terminations

  • Industrial Food Facilities
    • Health Department Permits
    • Specialized Tenant Improvements

Listings

For Sale

Address Price Size City Type Contact
7137 Telegraph Rd. $804,540 3,657 sf Montebello Industrial Jamie Kim

For Lease

Address Price Size City Type Contact
None

For Sublease

Address Price Size City Type Contact
None

Consulting

As consultants, our singular focus is to help you achieve your mission.

We provide rigorous analysis and in-depth research. Great effort is made to understand your environment. Instead of ever expecting to change external variables, we deal with them as they are. We are disciplined never to assume, we identify critical insights and provide actionable solutions. Our clients are encouraged to achieve maximum flexibility because adaptability is the best protection against the uncertainty of the future.

We are known for simple and practical solutions because the more complex any system or strategy is, the more likely it is to fail. We are unconventional in our thinking and approach as we engage our clients to use unprecedented efforts. Our clients learn to use obstacles in their business environment to their advantage and execute a swift response to neutralize problems and or competitors.

Anyone can give an opinion or provide advice. But what sets our consulting practice apart is that we actually live out our words. We are involved with every step from initial concept / strategy to completion implementation / execution. While working with our clients side by side we are determined to see our clients triumph.

Wisdom to know what to do is not enough. Everyone needs practical wisdom with detailed steps on how to achieve the end, from the beginning. Providing clarity and focus is what we do best. As a result, we help our clients eliminate things they don’t want, and are able to narrow the number of options down to 2 or 3.

The dimensions of a problem are thoroughly evaluated by our team. We have a structured process that helps our clients do the following:

  • Prepare for both short-term and long-term challenges
  • Anticipate problems
  • Plan for contingencies
  • Deal with the unexpected
  • Strengthen or eliminate the weakest links
  • Insist on results not best efforts
  • Create powerful competitive advantages

Just knowing your full potential is not enough. You have to reach your potential through action.

Reject conventional wisdom because it is essentially is no wisdom at all. Attack your internal self imposed limitations and rise above human nature and weaknesses to get the job done.

Business Financing

A solid foundational understanding of how business purchases are funded is essential for both buyers and sellers. We encourage our clients to familiarize themselves with the most common forms of financing used for transactions both large and small. The following are different types of available financing under current market conditions:

Bank Financing

Bank financing is typically in the form of SBA (The U.S. Small Business Administration) loans. These loans are originated by SBA participating lenders, which fund the loan with the SBA guaranteeing the lender that the lender will be repaid by the SBA. Loans are approved and originated by these SBA participating lenders. The SBA, in turn, agrees to guarantee some percentage of the principal balance of the load (usually 50%). SBA-backed loans are subject to specific underwriting guidelines regarding fees, interest rates, collateral, personal guarantees, amortization, covenants, and other forms of debt.

To learn more about the SBA and its loan programs go to www.sba.gov for further research.

Seller Financing

The amount and terms of seller financing agreements vary significantly depending on the nature of the business being sold, general availability of 3rd party financing, the buyer’s cash down payment capabilities as well as other factors. The willingness of a seller to provide some financing is an important psychological factor because it can be interpreted by buyers as a solid demonstration of the seller's confidence in the future prospects of the business being sold. The interest rate on "seller held notes" are typically in the range of 6% to 10%, depending upon prevailing interest rates, and the expected repayment period.

Retirement Fund Financing

Many of the buyers we work with choose to use their retirement funds (401K plans, IRAs, etc) to finance their business acquisitions. There are many innovative firms who have developed methods which allow you to fund your business purchase by using your retirement plan assets without incurring taxes, interest or penalties. There is a very specific process to be followed when using these types of funding, so it is important to use a firm that has specialized experience in this area.

Buyers

Whether you're acquiring a local business or a mid-sized corporation, The Phronesis Group is experienced in all facets of the process of acquiring a business, how a business is valued, and negotiations. We facilitate successful transactions with careful analysis of how the value of a business is derived, provide astute transaction management to negotiate and ultimately close the deal. Our forte is in saving our clients time, effort and money throughout the entire process.

FAQ | BUSINESS PURCHASE

Why should I use The Phronesis Group as my exclusive business broker?

As a professional business brokerage firm with an extensive network of contacts, we can help you source unique businesses and opportunities that you are unlikely to find on your own. Enduring loyalty and commitment goes two ways and result in off-market opportunities with fewer competing offers. Often, during the search process, the initial purchase criteria may change, after exposure to specific insights that may positively impact yet still reinforce your overall investment goals. We are flexible in our attitude, thought process and approach, but we never sacrifice our core values and strengths.

What are the steps to purchasing a business through The Phronesis Group?

  1. An initial consultation is scheduled to understand your purchase criteria
  2. Viable opportunities will be presented in a concise business abstract form
  3. A signed Confidentiality/Disclosure Agreement will be required before more in depth information can be released (which occurs later in the process)
  4. To get a feel for the business, visit incognito during normal business operating hours
  5. Meet with Seller to get a better understanding about the business without entering into negotiations discussions
  6. Conduct a preliminary evaluation based on the information provided by the seller
  7. Make an initial offer assuming that all of the information provided is correct but contingent based on verification this information.
  8. Negotiate price, terms and conditions until a final purchase agreement is reached between both parties
  9. Complete your due diligence with more detailed information provided by the Seller
  10. Prepared necessary documents for closing
  11. Close the purchase and begin your first day as the owner of your own business
  12. Seller training will be provided post-close (as detailed in the purchase agreement)

What does it take to be successful?

  • Adequate capital to purchase the business and any additional improvements
  • Enough cash reserves to offset a slow start, or worst-case scenarios (outside of your immediate control)
  • A willingness to work hard and actively function in a number of capacities

What are some key considerations?

  • Review your own personal / business history, core competencies and skill sets
  • What is the minimum return on investment required during the first year of operations?
  • What can you do to improve productivity and profitability that the current owner has overlooked?
  • Assess realistic and viable short and long-term goals and see if this purchase will support these goals

How are businesses priced?

  • A proper valuation can not be derived until we conduct a review of the financial information
  • Market conditions, as well as the seller’s desired sales price will be taken into consideration before pricing is finalized
  • Typically the minimum cash down payment affects the price in the following manner: Lower down payment requirements, as well as seller financing can command a higher price, while a higher down payment requirement will generate a lower sales price
  • How the sale of the business is structured is more important than the actual selling price of the business because the terms of the sale can have a significant impact on the success of the business
  • Careful consideration of net profit minus debt service may yield a different decision or attitude about the final sales price

What are the proven advantages to buying an existing business?

  • Immediate cash flow
  • Existing licenses / permits
  • Tangible operating results
  • Established customer base
  • Existing trained employees
  • Established supplier relationships with credit terms
  • Seller training
  • Owner financing

Do I need an attorney?

Seeking the advice of legal counsel is a prudent part of closing a transaction. But be sure to qualify the attorney, to ensure that they are familiar with the business buying process and has the time available to handle timely review of paperwork and legal documents. Always keep in mind that there is a subtle balance between assisting with the transaction, while protecting your legal interests / liabilities without eroding the agreed to deal terms and positive relationship with the Seller (who may be a valuable resource to you post-close).

Sellers

At The Phronesis Group, we make selling your business our business. Our team of highly trained and experienced brokers are well versed in all aspects of the business sale:

  • Business valuation and pricing
  • Confidentiality
  • Business financing
  • Negotiations
  • Saving you time and money

Properly pricing your business is critical to successfully executing a sale. We are sensitive to your confidentiality requirements and will market your business with care, so that employees, customers and / or competitors are not informed. Our invaluable expertise is in negotiating a purchase agreement that works for you. We have the skill sets to overcome objections, obstacles and challenges with creativity, tenacity and timeliness. Our active involvement will help you avoid unnecessary frustration, time, effort and money. We strive to sell your business for the maximum sales price in the shortest time possible.

FAQ | SELLING YOUR BUSINESS

What are the steps to selling a business through The Phronesis Group?

  1. An initial consultation is scheduled to understand your business, desire to sell, objectives/timeframes and expectations
  2. In order to communicate information about your business to prospective buyers, you must make the following preparations:
    • Provide organized financial records: 2-3 year f/s and tax returns; copies of all relevant leases and a business contracts
    • Clean up & repair equipment: Your business should appear well organized with all equipment in good operating condition
    • Normalize the inventory: Eliminate any obsolete inventory
  3. Based on the information provided, we will complete a valuation and provide an opinion of value in order to determine the asking price
  4. A business profile is created to summarize and highlight key financial aspects of your business
  5. While maintaining confidentially, we will aggressively market your business
  6. Once strong interest is generated, we will pre-qualify prospective buyers, obtain signed confidentiality agreements, and schedule site visits (incognito)
  7. Optimally, you will be presented with multiple offers where The Phronesis Group will negotiate to maximize your value
  8. Once an offer is accepted, a purchase and sale agreement is generated, at which time you will need to prepare for due diligence
    • Respond to requests for information from buyer in a timely manner
    • Assist buyer with information needed for financing
    • Resolve any outstanding contingencies
  9. Upon the close of escrow, you will need to transition the business to the buyer (new owner) with the following:
    • Plan announcement to employees
    • Train and transition management and operations to buyer

How long does it take to sell my business?

  • On average it takes about 5-9 months to sell most businesses
  • Depending on the complexity of the business, or certain deal terms this may shorten or increase this average time frame
  • The lower the down payment (40% of the asking price or less) will shorten this time as well
  • Timely preparation of financial information and responsiveness of the seller will also affect this outcome

Why should I go to a business broker?

  • When you engage The Phronesis Group to sell your business you are gaining peace of mind
  • Because of our involvement, you are free to continue to focus on daily operations free of distractions
  • We are able to expose your business to a greater pool of qualified buyers
  • We transact deals on a daily basis and are accustomed to proactively facilitating a successful close

What can business brokers do and what can't they do?

The Phronesis Group cannot substitute your qualified and experienced financial and legal counsel. We are professional business brokers who facilitate the sale of your business by doing the following:

  • How to value and price your business
  • How to properly structure the sale to meet your objectives
  • Find qualified buyers and negotiate the transaction successfully

Our goal will be to understand current market value and work diligently to obtain the highest possible value for your business.

What is the importance of seller financing?

It is common that when a seller asks for all cash, they may only receive on average about 75% of their initial asking price, while sellers who accept terms may receive up to 90% of their asking price. Reasonable terms can positively impact their ability to sell as well as shorten the duration of the listing. By financing the sale of their business a seller can generate greater interest in their business ultimately impacting the final sales price

To Do List

  • Pricing
  • Training
  • Inventory
  • Strategy
  • Timing

Opportunities

Industry Location Offering Price Down Pmt Gross Sales Total Assets
Power Supply Repair Santa Ana $275,000 $125,000 $320,000 $150,000
Asian Restaurant La Mirada $550,000 $137,500 $1.7M $415,000
Laundromat Lynwood $300,000 $75,000 $96,000 $100,000
Chinese Family Restaurant City of Industry $200,000 $60,000 $387,905 $190,000
Gastro Pub City of Industry $150,000 $45,000 $290,000 $80,000

M&A

For mid-sized companies (both public and privately held), we excel at managing the M&A process. Although our solutions are custom tailored for each client, we standardize the M&A process in order to deliver maximum value with minimum distraction to operations. Our team works closely with clients to define objectives, design and implement a transaction strategy to achieve each goal. Some key considerations are:

  • Criteria to initiate discussions (number and nature of potential parties)
  • Time frame and overall expectations
  • Sensitivity to ongoing operations of the business
  • Strategic considerations and market factors

While each engagement is conducted differently based on the client’s unique situation, to create maximum value for our clients, we conduct all sale engagements with the following in mind:

  • The highest level of confidentiality and discretion
  • Extensive industry and buyer research
  • Active transaction management
  • Minimize the time requirements and potential distractions
  • Implement creative and unconventional negotiating strategies

Buy-Side Acquisitions

We take a comprehensive view of our clients' acquisition criteria with a focus on generating the absolute best the long term returns. Unlike the conventional advisors, sometimes we will counsel our clients to not do a certain transaction, in order to preserve our clients’ best interests. We partner with our clients to identify relevant acquisition criteria. Our established, systematic process to identify, research, and prioritize potential targets to compliment our clients’ growth plans. From start to finish, we treat every phase of the project with the highest level of care from initial contact, due diligence and valuation, to negotiation, and deal structuring.

The following types of acquisitions involve increased complexity but can deliver better than average results:

  • Distressed Deals where acquirers are able to turn distressed assets around
  • Private Company Acquisitions can earn higher average returns when properly evaluated and optimal deal terms are negotiated
  • Overseas Acquisitions can be lucrative if our clients are able to confidently manage geographic complexity

Divestitures

Given the complex nature of corporate divestitures, our challenge is to find the right buyer which is critical to these transactions. The Phronesis Group works closely with our clients to understand key issues to source an optimal buyer for each situation. During divestitures of subsidiaries, operating divisions, product lines and manufacturing facilities for public and private companies, we preserve confidentiality while maximizing value. Sometimes, a strategic buyer is required because there is a lack of management or shared operating assets that must be retained by the parent. Alternatively, a financial buyer may be optimal when our clients are concerned about sharing information with competitors, in the even a deal is not ultimately transacted.

Leveraged Buyouts and Recapitalizations

The Phronesis Group is well versed when management teams seek to acquire an operating entity from its current owners, or when business owners seek to sell an operation to its managers. We structure and negotiate transactions that meet the objectives of both managers and owners, as well as assist with securing appropriate financing to complete a transaction.

Corporate Finance

We have an extensive network to help our clients navigate changing market conditions and ever changing capital markets. We provide best-in-class resources to a wide range of both public and private companies. Our involvement ranges from the provision of strategic advice on optimum capital structures to assisting with the execution of balance sheet restructurings and financings.

The Phronesis Group’s advisory team can assist with any combination of the following:

  1. General Financial Advisory
    • Analysis of asset-based financing (release valuable capital trapped on balance sheet)
    • Analysis of joint venture funding or equity investment (for off balance sheet capital)
    • Access new debt or equity markets (to address restrictive capital structures)
    • Generate and assess multiple proposals from debt or equity providers
  2. Assistance negotiating with existing lenders regarding:
    • Actual or potential breach of covenants
    • A requirement for temporary or additional working capital
    • Restructurings
    • Refinancings
  3. Portfolio evaluations
    • Investor selection
    • Assistance with purchase / sale negotiations
  4. Need for new or replacement lenders to address rapid growth and expansion
    • Maturing debt facilities
    • Current lenders are outgrown or fully drawn

Valuations

The Phronesis Group provides independent and objective valuation advisory services for a number of purposes that include the following:

  • merger and acquisition transactions
  • strategic planning
  • fairness opinions
  • fixed asset appraisals (which include machinery & equipment and real estate)

Our valuation professionals provide valuation techniques, an in-depth understanding of current market conditions and tax and structural issues to offer a wide range of relevant valuation services. We perform valuations of business entities to assist clients with mergers, acquisitions and dispositions, financial reporting, reorganization, dispute resolution and strategic planning.

Strategic Advisory

The Phronesis Group’s strategic advisory services focus on analyzing our clients’ ability to meet growth requirements and the liquidity needs. We thoroughly examine multiple transaction strategies, such as acquisitions, divestitures, recapitalizations and the possible sale of the company. In addition, we evaluate each strategy’s impact. Our strategies are designed to ensure that our clients can actually deliver intended results of pursuing growth, delivering innovations, managing risk, or improving margins.

We excel at taking on the toughest business challenges because the word “impossible” is just not part our vocabulary. We have the know-how to assist our clients in creating executable strategies. It’s an approach that helps organizations operate with speed and practicality in order to take advantage of new opportunities while minimizing risks.