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The Sale Process

It's not easy- the mental process a business owner goes through deciding to sell their company.  The feelings of attachment to their creation, managing anxieties about the future, and strategically positioning the business to attract a buyer while maintaining control over the sale process.

Philippians 4.13

Consultation & Valuation

In a free, no-obligation introductory consultation, we get to know the business and its unique qualities. We will explain our services, methodology, and what to expect during the process of selling - all while ensuring complete confidentiality. Following this, we provide a complimentary valuation, revealing the business's value range, and pre-screen it with lenders to ensure the valuation aligns with current guidelines.

Packaging & Marketing 

Once you partner with us, we'll get the business ready for sale. We compile all essential information into various marketing profiles that highlight the company’s key differentiators and assets, while keeping sensitive details and names confidential. These summary profiles, along with other materials, are then used to market the business to thousands of prospective buyers. Throughout this process, we take meticulous care to maintain the confidentiality of the business’s identity, using generic terms.

Buyer Pre-Screening

When inquiries come in as a result of marketing efforts, potential buyers are pre-screened. This ensures that they are both serious and financially able to purchase the business. We maintain strict confidentiality by utilizing non-disclosure agreements, reviewing proof of financial capability, and examining bios/resumes. Face-to-face meetings are then held to educate parties on the buying process. Before releasing any sensitive information, including a business's name, we present them to owners for approval.

Buyer/Seller Meeting

The next step involves a meeting between the prospective buyer and seller. This meeting offers an excellent opportunity for getting acquainted, explaining the business in more detail, and addressing questions. The discussions during this meeting typically remain high-level, focusing on strategy, company history, the nature of the business, etc. Detailed fact-checking is usually conducted post-offer during the due diligence phase. After the meeting, many buyers also opt to perform a more detailed review of the financials to determine an exact offer amount.

Offer Review & Negotiation

When a prospective buyer decides to move forward, they typically begins with an offer to purchase or a letter of intent. The document will outline the details of the offer, including the proposed purchase price, 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. Typically, the buyer uses this time before closing to request detailed financial information, 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 often 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, including attorneys and accountants, to assist with abstracts, legal documents, and minimizing tax implications. 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 better than industry averages.  Our priority is to ensure the right people are involved. Typically, the entire process, from offer acceptance to closing and fund receipt, spans approximately 60 to 75 days. However, timelines may vary.

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