Selling Your Business - The Controlled M&A Process
Helping clients realize their objectives from the sale of a business is a complex process, where each step is integral and each potential outcome must be anticipated. Allied's approach provides business owners with a distinct advantage in today's marketplace. 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 approach through the process:
Stage 1 - Goal Assessment, Valuation and CBR
Before a business goes to market, our advisers take ample time to understand your company and your exit goals. First, our accredited business appraiser will thoroughly research and review your company to create an accurate business valuation report following the Uniform Standards of Professional Appraisal Practice (USPAP). Then, your adviser will create a Confidential Business Review (CBR) marketing book to present your business in the most beneficial manner to buyers, communicating past performance as well as future potential. Recasting of financials and creation of pro-forma projections help complete this platform document.
Stage 2 - Buyer Search and Qualification
A confidential marketing plan is developed to target and qualify the best potential buyers for the business. Allied uses its own resources, as well as local and national contacts, to begin a controlled exposure of the company. To ensure confidentiality, every qualified buyer is required to sign a non-disclosure agreement before we release any information. Serious contenders are then given the opportunity to meet personally with our seller client.
Stage 3 - Negotiation and Deal Structuring
Allied works closely with its clients to carefully guide them through the negotiating and deal structuring process. A strong effort is made to keep multiple buyers in the process to achieve the best financial and qualitative results. Our goal is to create a competitive environment where value, rather than price, is the primary focus.
Once preliminary negotiations are completed with the desired buyer, price and terms are discussed through a letter of intent (LOI). This tentative agreement outlines the primary economic considerations of the transaction, as well as other pertinent issues such as tax and legal matters, representations, warranties, financing and owner participation after the sale.
Stage 4 - Due Diligence and Closing
After the letter of intent is signed, the buyer begins their due diligence investigation. Buyers typically bring in their team of bankers, accountants, attorneys 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 Allied's professional skill and guidance are used to defend our seller client.
When our client's needs have been met and the buyer and his representatives are satisfied with price and terms, a final purchase agreement and closing documents are completed. These documents legally transfer the stock and (or) assets of your company to the buyer in exchange for the agreed upon consideration.
Please read the following articles for more information about the selling process. If you have any questions, please complete our Seller's Registration or contact us.
