Sell a Business
Selling your business represents the culmination of years of hard work, dedication and sacrifice. There’s simply too much at stake to short-cut the sale process or try going it alone. Exit Strategies represents clients through the entire business sale process, which we tailor our clients’ specific business and circumstances. Here is a general description:
During our complimentary initial consultation, we’ll get to know each other and you’ll receive answers regarding:
- The feasibility of achieving your goals
- Steps in a structured M&A sale process, and benefits
- Current M&A market conditions
- Assessing the value and marketability of your business
Assessment and Decision Making
An objective and reasonably thorough assessment of your business will help you decide if the time is right to sell, and help you maximize value in the sale process. During our initial visit we will recommend the appropriate level of analysis for your circumstances.
An Assessment answers questions about:
- Probable selling price range
- Value drivers and detractors
- Target buyers, likely deal structures and terms
- Any marketability issues
- Potential roadblocks to a sale
- Go-to-market preparation
- Managing your stakeholders
A reasonably thorough assessment involves analyzing working capital requirements, capital spending needs, intangible assets, agreements, relationships, business plans, and numerous other drivers of value. It also involves normalizing financial statements and applying advanced business valuation methods, not just pricing rules of thumb. We will work with you to make the right decisions for you, your family and other stakeholders, alongside your legal, tax and financial advisors.
The assessment helps us line up financing and approvals and address any marketability issues before going to market. When ready, we go to market. Or, if a sale today won’t support your personal goals, the assessment will help you close value and marketability gaps. If you want professional help, we can discuss an Exit Planning engagement.
Strategic, Confidential Marketing
When we go to market, we target strategic and financial buyers, and local, national and international buyers, as appropriate for your business. Exit Strategies conducts extensive research to build a target buyer list. We also have an internal database of active individual, corporate and private equity buyers. We create a custom marketing campaign and cast a wide net to produce buyers for your business.
First however we develop a professional Confidential Information Memorandum (CIM) or “deal book” that presents important facts about your company and its unique value proposition. Buyers are screened and must sign a confidentiality agreement before receiving the deal book. A good deal book contains most of the facts buyers need to get comfortable with the business for sale, see its value, and formulate a purchase offer. A good deal book is also balanced; overreaching turns buyers off and puts your proceeds at risk. An executive summary or “teaser” is created for target buyer outreach.
A confidentiality breach can harm your business and forestall your exit. Normally, few if any employees, and no customers, suppliers or competitors, know of your plans to sell. Exit Strategies has procedures to preserve confidentiality throughout the sale process.
Negotiations, Due Diligence & Closing
With buyer candidates contacted, screened and armed with the CIM, we will fill in any information gaps that could influence offers. You’ll meet with the most serious candidates. We arrange a competitive bid or auction process when appropriate. We obtain offers and discuss their pros and cons with you. We negotiate favorable terms and deal structure, in concert with your tax and legal advisors. Every sale engagement is unique, and there’s no substitute for experience in this phase.
After settling the major deal points, our attention shifts to project management for your deal. We facilitate due diligence. We coordinate with attorneys, CPA’s, bankers, landlords, appraisers, environmental consultants, government agencies and others. We get involved with financing, third-party consents, definitive agreement preparation, ancillary agreement negotiation, and closing procedures. We work to keep everyone focused on the right things at the right time, anticipate and resolve problems, and keep the process on track.
Selling a Business is a Process
Treating the sale of your business as a business process, not a spontaneous event, will improve your outcome. Having a professional M&A broker advise you and run a structured sale process, while you focus on running the business at peak performance, maximizes value and increases the likelihood of achieving your goals.
Contact us for a complimentary consultation about selling your company. Our discussion will remain completely confidential.