Removing the emotion from an emotional decision.
Objectivity. Perhaps, the most crucial component in the process of successfully selling a business. We have it, most business owners do not. And that’s completely understandable. Because owning a business is more than a job, it’s fully intertwined with your life. A 24/7 365 rollercoaster you built out of determination, dedication, dreams and shear hard work. So it’s difficult not to let emotions weave their way through realities and hamper, or worse, scuttle selling a company. And that’s why you hire us.
Our mission is to keep you objective and focused on the goals. We will work closely with you to gain first-hand knowledge of your company, examine your objectives and apply our expertise and experience in the market to determine how best to obtain them. Our process is designed to keep you fully informed of what is happening and what will happen during the sale as follows:
We begin with a no obligation face-to-face meeting with you and our team. We get to know you and your business and discuss what you’re hoping to accomplish. At this point, our team can determine if a sale is appropriate and discuss the steps necessary to move forward.
Properly pricing a company is critical to an effective sale. We’ll collect three to five years of records to determine your company’s financial strength. This combined with other factors like assets, debts, goodwill and market conditions will be evaluated by our certified business valuator (CBV) to determine the initial asking price range—working with you to develop a pricing strategy that will guide us through the process.
Identify a Target Buyer
By analyzing your company and the market, our team will determine who or what would be the ideal buyer—one that would provide the highest probability for a successful transaction. We then explore what are the most effective ways to locate and inform them of this opportunity.
We’ll develop and design advertising to promote your company’s strength and growth potential. Strategically placing those messages in areas that’ll reach the highest number of capable buyers. The whole time taking great steps to protect the confidentiality of your business if that is what you desire.
Our team will meet with any party prior to releasing your company’s identity to determine their level of interest—as well as their ability to complete a transaction. If we determine the buyer could be a potential fit, with your consent we sign a confidentiality agreement.
Once we have established genuine interest and confidentiality, we will start to release information that the potential buyer will need to decide if they want to move forward. This would include items such as, but not limited to, basic financial statements, asset lists, liabilities, staffing, competition and market conditions.
We will produce a selling memo that will summarize most of this information. With your assistance, we will work to answer questions and address any concerns a buyer might have that will move them closer to a sale.
To guaranteed the best possible results, our team will handle all negotiations on your behalf pertaining to price and terms of a deal. We will use non-binding tools like a letter of intent to outline the general terms that are agreed upon by you and the buyer. After we have a signed letter of intent, attorneys will start working towards a definitive offer.
For transactions, this is often the most time consuming and challenging phase of the buying process. Traditionally, under the guidance of an attorney, the buyer will request documents or information in order to study the business and verify what was presented during the information phase.
The buyer will then produce proof they have the means to complete the sale and ability to run the business once the buy is closed. Much of this work is performed by attorneys representing both parties.
When possible, our team will be involved in helping organize and expedite the exchange of information to save you time. Traditionally, this is the point when you and our team meet with the potential buyer in person to discuss the transaction.
Once due diligence is completed, the sale moves forward to settlement. Attorneys will produce all documents and contracts needed to complete the transfer of ownership.
These documents will be drawn up using the terms agreed upon in the original letter of intent or any changes made during due diligence. A formal closing will be scheduled and all documents will be signed to complete the sale.
All that is left, then, is to say congratulations.