
Entrepreneurial exits can be viewed as a large “harvest” of one’s life’s labor. While the process can be an emotional roller coaster, it can also be a thrilling time as you finish one chapter and begin to think about the next. When it’s time to sell, having the appropriate counsel on your side is important to getting the most out of a firm that took a lifetime to establish.
We assist privately owned middle-market company owners/founders/CEOs with the selling of their firms. We assist our clients optimize value by establishing a rigorous technology-enhanced procedure across the different sectors and verticals we have transacted in. Whether you’re looking to sell to a family member, a partner/management buyout, a strategic/financial acquirer, or as part of a planned exit strategy, our expert advisors will work closely with you to achieve your objectives.
A business divestment should be a well-thought-out and planned process, which is why we invest time up front to truly understand your organization and motivation to sell. We get involved as early as possible in the process so that we can help you strategize and explore your transaction alternatives, whether it’s in 90 days or two years, we’ll be there to help when the time comes.
Our value-added Sell-Side M&A services imply that we take a holistic approach to supporting our customers in achieving their financial objectives, which comprises a thorough and technology-driven process that often includes:
To close a deal successfully, you must first understand the business value and strategic positioning within the relevant market. We collaborate with business owners and their accountants to develop a business valuation based on relevant comparables and industry multiples that are most appropriate for your industry niche. Following that, we talk about target values depending on the least and most likely M&A situations. Initial engagements may entail mock due diligence and the advisor’s evaluation of the company. The company and its shareholders will also conduct extensive due diligence and reference checks on the transaction’s representing agents to ensure that their business is properly represented from start to finish.
Once the client has engaged us for M&A consulting, we work directly with business sellers to formulate what is often referred to as the “Picthbook,” “the book,” “Confidential Marketing Memorandum (CMM)” or “Confidential Information Memorandum (CIM).” The creation of the book is a crucial component in the deal-making process as it represents the most comprehensive description of all the business has to offer a potential buyer. It should include everything from employees to financials to future opportunities for growth and expansion. Your Confidential Offering Memo is the business plan of your business exit. It is what investors in your company as a “going concern” will want to see before they will even consider investing. It provides all the relevant operational, marketing and financial information about your business. It will include information on assets, including tangible and intangible property, liabilities, cash flows, major customers, key employees, general market analysis and trends and reasons for selling. Drafting an offering memo early is also helpful because in the end, it may just require a few simple tweaks so as to conform to the changes in the business. When it comes time to prepare to sell your business by drafting a marketing memorandum, give us a call.
Rather than plastering a “company for sale” sign all over the place, we take two critical actions at this point in the process. First, we create a short list of potential strategic acquirers–those who are willing to pay the most in a merger and acquisition situation. We mix the strategic short list with a larger group of financial investors. The seller will receive this list after it has been authorized by all shareholders. Once this list has been cleared and “the book” has been prepared, the company will be “blind” sold to potential strategic and financial buyers. As a result, the seller’s confidentiality is preserved, and the business’s existing and future operations are not interrupted as a result of the attempted sale. The majority of business purchasers can be divided into two categories: financial buyers and strategic buyers. Financial purchasers are just interested in the figures. They’re only concerned with profits (ROE, ROA, etc.). All they want is for the money they infuse to be used to bring back additional money. They aren’t as concerned about strategic issues as we are. A strategic buyer, on the other hand, is more motivated to purchase the company. Most strategic purchasers are willing to pay more, especially if the seller and the acquirer have crucial synergies. After that, expert negotiations take place after direct confidential outreach.
Expert negotiations are the key sticking point between advisors that get a deal done and those that exceed expectations in M&A. Our process includes bringing multiple buyers to the table in a value-enhancing auction scenario where the buyer who matches the sellers criteria for fit and price ultimately wins the deal. This can be a delicate process and requires the support of experienced negotiators with the ability to enhance value when it’s needed most: in the final sale of the company.
We work fast to ensure due diligence and deal closure are completed immediately after we select the winner of the strategic auction for the company–ideally between 30 and 90 days after all parties to the deal have signed a Letter of Intent for acquisition.
Selling a business is frequently a strategic decision. Working with numerous stakeholders to verify the business is genuinely ready to be sold is a must. The selling of a firm is, and should be, a well-planned process in most situations. It should include the aid of insurance reps, attorneys, and tax and estate planners in addition to M&A advisors, broker dealers, and real estate brokers.
In essence, the sale of your company is a project management process. Start early in the process, speaking with all essential parties, including your investment banker, to ensure your success. By starting the process early, you can ensure that you are prepared in the event that a buyer arrives early, but you can also ensure that you have the correct moment when the market factors conspire to create a perfect storm. Most essential, there are a few key aspects of closing a business that must be ironed out before you begin.
We provide clients with a simple fee-structure for selling their business
From the first meeting until the final liquid divestment, our staff is entirely committed to our clients. Our significant experience assisting sell-side customers has enabled us to establish unique but proven strategies for increasing a company’s worth.
This involves enlisting the help of our team of specialists in finance, accounting, sales, marketing, and operations to undertake a comprehensive examination of your company. We then actively seek for multiple bidders with whom we engage in a competitive bidding process in order to maximize your profit.
We’ll work closely with you to negotiate a successful transaction while maintaining your privacy at all times. Our goal is to secure a successful sale while also assisting our clients in getting the most out of their business.
The terms and conditions of a business sale differ from one person to the next. Whether your primary goal is to sell to a buyer who will uphold your values or to produce the greatest potential results for shareholders, will use our extensive resources to find the optimal buyer for your transition and will work closely with you to close the sale.
Not sure if it’s the right time to sell? We also offer support and guidance – built on factual data and analysis – to help you determine the best time for you to exit your company.