Selling Your Business

Where do I start? What does the process look like?

Pre-Sale

Optimally you will want to start this 6-12 months prior to sale and take action on initiatives that will be attractive to buyers. Think like a buyer. Manage your expectations with a realistic valuation from a competent source with real-world experience closing deals.

Discovery

This is generally 1-2 months to craft your company’s story from the buyer’s point of view highlighting positives and acknowledging challenges.

Go to Market

A blind profile will be sent to approved targets, Private Equity and other investors. Responses will need to be qualified and bound with an NDA before disseminating more information.

IOI & LOI

Indications of Intent and Letters of Intent are collected and negotiated to establish a common ground for a deal.

Due Diligence

A highly detailed and involved process of providing all relevant details to a buyer. This process must be managed carefully to keep buyers in check.

Closing the Deal

No deal ever gets done without mutual respect and trust. Honesty and transparency are key to the process and success before you receive the funds.

Threats

Confidentiality
Breaches of confidentiality could be catastrophic. Buyers need to be qualified and given rules for engagement with strict nondisclosure agreements. You do not want to give potential buyers too much information until you know that they are capable of consummating a transaction, why it would make sense for them and that they are genuinely interested.

Seller Beware
While most buyers are actually reasonable people, they are seeking to maximize their return. This means paying less if possible. You may do the same if you were in their shoes and they cannot be faulted for trying to influence the process to their advantage. You need to be a student of the game and (not or) have a good advisor.

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