Sell a Business
Selling your company 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 you through the entire business sale process, which we tailor to your needs and circumstances. Here is a general process description:
During our initial consultation, we’ll get to know each other and you’ll receive answers on:
- Sale process steps and benefits
- Current market conditions
- Assessing value and sale readiness
- Feasibility of achieving your goals
Phase 1: Assessment and Decision Making
An objective and thorough assessment of your business helps you decide if the time is right to sell and helps us maximize value in the sale process. A reasonably thorough assessment involves analyzing working capital levels, capital spending needs, growth plans, intangible assets, agreements, relationships, business plans, and numerous other drivers of value. It also involves adjusting financial statements and applying formal business valuation methods, not just pricing rules of thumb. During our initial visit we will recommend an appropriate level of analysis for your situation.
The Assessment answers questions about:
- Probable selling price range
- Value drivers and detractors
- Target buyers, likely deal structures and terms
- Marketability issues and potential roadblocks to a sale
- Go-to-market preparation
- Managing your stakeholders
We then work with you to make the best decisions for you, your family and other stakeholders, alongside your legal, tax and financial advisors.
The Assessment helps us line up financing and address any preparedness issues before going to market. When ready, we go to market. If a sale today won’t support your personal goals, the Assessment helps you decide how to close value and marketability gaps. If you want further help, we can discuss an Exit Planning engagement.
Phase 2: Sale Process
Strategic Outreach, Confidential Marketing
Exit Strategies creates a custom outreach/marketing campaign to produce buyers for your company. We target strategic and financial buyers, and local, national and international buyers, as appropriate. We conduct research to build a target buyer list, and use our internal database of individual, corporate and private equity buyers. An executive summary or “teaser” is used for target buyer outreach.
First however we prepare a professional Confidential Information Memorandum (CIM) or “deal book” that presents important facts about your company and its unique value proposition. A good CIM contains most of the facts buyers need to understand a business, see its value and formulate a purchase offer. Buyers are screened and must sign a non-disclosure agreement before receiving the CIM.
A confidentiality breach can harm your business and stall your exit. Therefore, Exit Strategies has procedures to preserve confidentiality throughout the sale process. Normally, no employees, customers, suppliers or competitors learn of your plans to sell until we are ready to tell them.
Negotiations, Due Diligence & Closing
With buyer candidates contacted, screened and informed, we fill in information gaps that can influence offers. You’ll meet with the most serious candidates. We run 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 deal is unique, and there’s no substitute for experience in this phase.
After settling the major deal points, our attention shifts to managing your deal. We facilitate due diligence. We coordinate with attorneys, CPA’s, bankers, landlords, appraisers, environmental consultants, government agencies and others. We are involved with financing, third-party approvals, definitive agreement preparation, ancillary agreement negotiations and closing procedures. We work to keep everyone focused on the right things at the right time, anticipate and resolve problems, and keep your deal 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 outcomes. Having a professional M&A advisor run a structured sale process, while you focus on business performance, maximizes value and increases the likelihood of achieving your goals.
If you are considering selling your company, our professionals can provide invaluable insights. Contact us for a complimentary and confidential consultation.