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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 objectives. Here is a general process description:
We’ll get to know each other and you’ll receive answers on:
- Sale process steps and benefits
- Current market conditions
- Assessing market value and sale readiness
- Feasibility of achieving your goals
Phase 1: Assessment and Decision Making
An objective and reasonably thorough assessment of your business helps you confidently decide if the time is right to sell. An assessment involves analyzing financial performance, business operations, working capital levels, capital spending needs, growth plans, intangible assets, agreements, relationships, business plans, industry trends, and numerous other drivers of value. It also involves adjusting financial statements, forecasting, 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.
Questions answered during this phase:
- Probable selling price range
- Value drivers and detractors
- Target buyers, likely deal structures and terms
- Sale-readiness issues and potential roadblocks
- Go-to-market preparation
- Managing your stakeholders
Armed with this information, we work with you to make the best decisions for you, your family and other stakeholders, alongside your legal, tax and financial advisors. If the time is right, we go to market. If a sale today won’t support your personal goals, the Assessment helps you decide how to close value and sale-readiness gaps. If you want further assistance, we can discuss an Exit Planning engagement.
Phase 2: Sale Process
Preparation, Strategic Outreach, Confidential Marketing
Exit Strategies creates a custom outreach/marketing campaign to reach more and better buyers for your company. We combine extensive research with our own database of candidates to build the perfect target buyer list. We target strategic and financial buyers, and local, national and international buyers, as appropriate. An executive summary or “teaser” is used for target buyer outreach.
In parallel, we prepare a professional Confidential Information Memorandum (CIM) that presents important facts about your company and explains its unique value proposition. A CIM contains most of the facts buyers need to grasp the business, see its value and formulate an offer. Buyers are screened and must sign a non-disclosure agreement before receiving the CIM.
Before buyer outreach begins, we can address any preparedness issues identified during the Assessment phase, line up financing, round out your transaction team, and develop sale process strategies that will help us maximize value. Proper preparation ensures seamless execution and exceptional outcomes.
A confidentiality breach can damage 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. We’ll help you prepare for meetings with the most serious candidates. We orchestrate a competitive bid 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 transaction. We facilitate due diligence and coordinate with attorneys, CPA’s, bankers, landlords, appraisers, environmental consultants, regulators and others. We get 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.
Yes, Selling a Business is a Process
Having a professional M&A advisor run a structured process, while you focus on business performance, is the best way to maximize value and make a successful exit.
Every successful relationship starts with a conversation. If you are considering selling or recapitalizing your company, contact us for a complimentary and confidential initial consultation.