Our Process
1
Consultation Request
Call us or send us an email to schedule an initial consultation call. Someone will respond to your request within one business day and schedule a 45 minute initial call.
TimeFrame: 1 Business day
2
Initial Call and Estimation
Once you have provided all of the requested info. One of our team will get back to you that day to introduce themselves, ask you some questions about your business and then request your financials for review to complete the final valuation. Make sure you have ready – Past 2 years tax returns and most recent current year profit and loss statement and balance sheet.
TimeFrame: Within 24 Hours
3
The Agency Agreement
Part of the valuation call we will discuss the services we offer. We get paid a % commission of the total sales price of the business (no upfront fees) upon closing. After the valuation call our broker will send you our agency agreement for review which outlines our role and responsibilities in acting on your behalf to sell your company including how much, how and when payment is made and what determines if we get paid. You are welcome to send this to your attorney for review before signing.
TimeFrame: Within 1 – 5 Days
4
Listing Package
After the agreement is signed we have to gather the required financial and non financial information. We will take this information and create a listing package. This package will contain a financial snapshot for the prospective buyers and a story which will make the business stand out to the right prospective buyer.
TimeFrame: Within 5 – 14 Days
5
Bank Financing
Before we take your business to market we provide the information to lending institutions to organize financing. This gives us an idea of how much the banks are willing to lend and how much money the buyer will need to have on hand to close the deal. Bottom Line is there are a lot more people who have $200,000 cash on hand than those who have $ 1.0 Million cash on hand. Getting the financing organized allows us to market your business to a wider group of prospective buyers.
TimeFrame: Within 14 days
6
Deal to Market
We market your business primarily trough 3 different channels.
1. We reach out to our existing database of serious buyers that have Told us would like to purchase you type of business.
2. We market the business via traditional listing and marketing channels where people who are looking to buy your type of business are looking. This may include international exposure depending on the type of business.
3. We make a list of prospective inactive buyers. These are people who are not looking to buy a business actively in the market but would be an ideal buyer for your business. We then reach out to the people on this list directly.
During this phase we field any questions from prospective buyers. Only the most serious propspective buyers with verified funds on had to come the deal will be allowed to request a management call with you. During a management call the prospective buyer will talk with you in more detail about the business and its operations.
TimeFrame: 1 – 4 months
7
Fielding An Offer
At any time during the process you can receive an offer. We negotiate with all buyers on your behalf. However, you make the final decision as to which buyer’s offer you will accept. At offer acceptance the buyer usually gets a exclusive period of time to perform their due dillegince.
TimeFrame: 7-14 days
8
Due Dilligence
Winning offer gets an exclusive period to verify the information you provided about the business. During this time the buyer will go trough your financial and non financial records to verify that the business is as claimed.
TimeFrame: 2 – 8 weeks
9
Contract and Sale
The Buyer usually develops the contract for sale. At this point your lawyer will review the contract until it is to your satisfaction. Once the contract is finalized there is a date set where your lawyer and the buyers lawyers exchange the ownership of the business for the agreed upon proceeds. We take our payment at this time trough the lawyers.
TimeFrame: 2 – 8 weeks
10
Transition Period
After the sale is completed and you have received the agreed upon funds there is a transition period. The terms, length, and what training is to be provided is decided before the deal closes. During this time you you help the new buyer learn about your business and usually entails introducing the buyer to company employees/customers/ vendors.
TimeFrame: 1 – 6 months