Helping our clients realize their objectives through the sale of a business is a complex process, where each step is integral and each potential outcome must be anticipated. Our professionals provide the financial knowledge, local and national contacts and dealmaking expertise to help our clients make and keep more from the sale of their business. Allied uses a strategic four-stage process:
Stage 1 - Valuation, Goal Assessment and CBR
First, our certified business appraisers will thoroughly review your company and create a business valuation report, used for internal purposes only. Once the valuation is complete we can determine if your personal goals can be achieved through a sale. We will work with you to determine:
Do you wish to sell the entire company or would you like to retain some equity?
What is the minimum amount of after-tax money that is needed from a sale?
What maximum value could be achieved, when strategic buyers effectively compete for the business?
Do you wish to leave the business alltogether, or would you prefer to stay involved in a long-term employment and/or consulting agreement?
Are there family, partnership, employee or management issues that need to be considered?
Next, a Confidential Business Review (CBR) is created, which is the most important marketing document for your business. Typically 60 to 90 pages in length, the CBR will present your business in the most beneficial manner, communicating its past performance and future potential.
Stage 2 - Buyer Search and Qualification
A confidential marketing plan is developed to target and qualify the best potential buyers for your business. Allied uses its own resources, as well as local and national contacts,
to begin a controlled search for qualified buyers. To ensure confidentiality, every buyer is required to sign a non-disclosure agreement before company-specific information is shared. Serious contenders are then given the opportunity to meet personally with our seller client.
Stage 3 - Negotiation and Deal Structuring
We guide our clients carefully through the negotiating process. We strive to include multiple buyers in a competitive bidding process. Our goal is to create an environment where value, rather than price, is the primary focus.
Once the best buyer candidate has been identified, price and terms are discussed through a letter of intent (LOI). This tentative agreement outlines the price and terms of a transaction, as well as other issues such as: tax structure, representations and warranties, financing and owner participation after the sale.
Stage 4 - Due Diligence and Closing
After a letter of intent is signed, a buyer begins their due diligence investigation with their attorney, accountant, banker and other professionals. These "inspectors" may view the value of your business to the buyer in different ways. This is the most sensitive part of the transaction, where our skills and expertise are critical to a successful transaction.
When our client's needs have been met and the buyer and his or her representatives are satisfied with price and terms, a final purchase agreement and other closing documents are executed. These documents legally transfer the stock and (or) assets of your company to the buyer in exchange for the agreed upon consideration.
If you have any questions, or if you would like us to confidentially contact you, please complete our Owner Registration Form or contact us.
