HOW TO SELL YOUR BUSINESS

Thinking About Selling Your Business?

• Are you a successful business owner looking to retire?
• Are you burnt out and looking for an exit?
• Do you know that it will likely take you a year or more to prepare your business for sale, take it to market and consummate a transaction?
• Do you know what your business is worth and how to position it for sale at the highest price?
• If you’re thinking about selling and wish to reap the greatest reward, you should start preparing now...

The Interview (First Meeting)

• Identify goals and objectives.
• Go over the business sales process.
• Dig deep into your company so we can properly value your business.

Valuing Your Business

• Our evaluation goes beyond the simple multiple of earnings method.
• The buyer will want to have confidence that the revenues generated will continue post acquisition.
• Your company’s value drivers, risk factors and synergies will help us identify strategic buyers and position your company to sell for the highest value.

Preparing the Business for Sale

• Prior to launch we discuss the likely due diligence requirements a buyer will have.
• We need to ensure that all financial data is unambiguous and easily verified.
• Have answers prepared for all of the core questions a buyer might have.

Searching for Buyers

• We spend thousands of dollars per year marketing to external sites to generate buyer interest.
• We have 15,000+ buyers in our proprietary database.
• When we launch a listing, everyone in that database who is searching for your type of business will get a teaser information sent to them.
• We take the time to search for private equity and strategic buyers for your business

Negotiating the Deal

• The two key deal terms are price and risk.
• he more risk assumed the more favorable the price.
• If the buyer is a good fit, we’ll get the terms ironed out.
• If the buyer is not a good fit, the deal will likely fall out.
• Matching the right buyer with the right business is how we define success.

Due Diligence

• If you have all of your books and records in order, this process can go fairly quickly.
• If not, the process can drag out months and ultimately not be consummated.
• Third party lenders will also need to perform their own due diligence on both the buyer and the business.

Drafting the Contract

• Good transactions attorneys keep the negotiations moving forward efficiently.
• They customize contracts to limit vagueness and ambiguity.
• This investment can be thought of as an insurance to reduce risk of litigation post-closing.

Closing

• At the close, the business assets are transferred and the down payment will be wired to your account.
• Post-closing, there will be a transition period, training, possible consulting and then a release of any hold backs for tax liens or indemnifications.
• Celebrations!