The Sale Process
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It's not easy- the mental process a business owner goes through deciding to sell their company. They have feelings of attachment to their creation. They are worried about their employees. And they have anxiety about the what's next. You need the right team. We can help.
Philippians 4:13 "I can do all things through Christ who strengthens me."
Consultation & Valuation
We do a free, no-obligation introductory consultation. We get to know the business and its unique qualities. We will explain our services, methods, and what to expect during the process. All while ensuring complete confidentiality. Following this, we provide a complimentary valuation. Revealing the business's value range. Then we pre-screen the deal with lenders to determine buyer financing options.
Packaging & Marketing
Once you partner with us, we'll get the business ready for sale. We compile all essential information into various marketing materials. They will highlight the company’s assets and key differentiators. Keeping sensitive details and names confidential. These items are then used to market the business to thousands of prospective buyers.
Buyer Pre-Screening
As inquiries come in, potential buyers are pre-screened. This ensures that they are both serious and able to buy the business. We maintain strict confidentiality by utilizing non-disclosure agreements. We require proof of financial capacity and examining bios/resumes. Face-to-face meetings are then held to educate parties on the buying process. Before releasing any sensitive information, we present them to owners for approval.
Buyer/Seller Meeting
The next step involves a meeting between the prospective buyer and seller. This provides an opportunity to get acquainted. It allows for greater explanation of the business. And helps address any early questions. These discussions remain very high level. They focus on the nature of the company's business and its history. Detailed fact-checking is usually conducted post-offer during the due diligence phase.
Offer Review & Negotiation
When a prospective buyer decides to move forward, a purchase offer or a letter of intent is required. It will outline the details of the offer, including payment terms, training and transition arrangements, and any required employment or noncompete agreements. Other conditions related to the offer are also specified.
The seller can choose to accept the offer, reject it, or negotiate certain aspects. At this point, expert advice and guidance is invaluable.
Due Diligence
The due diligence period starts after the buyer's offer is accepted. The buyer uses this time to request additional financial information. Also bank records, copies of contracts with suppliers and customers, leases, and more. This period usually lasts between 2 to 6 weeks, with varying intensity. Buyers usually overlook minor discrepancies and focus on significant differences or unexpected surprises. It's important to be well supported throughout this process.
Closing
Once due diligence and buyer financing are complete, closing documents are drafted and the sale is finalized. We recommend legal and financial experts, to assist with abstracts and closing documents. We can, and do, work with a seller's advisors. However, existing professionals sometimes do not have the experience necessary to close these types of transactions. The professionals we work with have a success rate three times industry averages. Our priority is to ensure the right people are involved. The entire process, from offer acceptance to closing spans 60-75 days. However, timelines may vary.