The Sale Process

The Sale Process

The business sale process has a number of distinct stages and typically takes 6 to 10 months to complete.

The Business Sale Process

Finding the Right Buyer

Finding the Right Buyer

There are strategic and financial buyers. The best buyer is the one that benefits the most from the purchase.

Finding the Right Buyer

Valuation

Valuation

A business's value is determined by market comparables as well as business specific analysis.

Valuation

business due diligence

What is Due Diligence and What Does it Entail?

Due diligence is an investigation of a business or person prior to signing a contract.  More specific to a business sale, business due diligence is the process of verifying the representations made in the CIM and other marketing materials provided to the potential acquirer by the seller.  For example, in a CIM it may say…

Comparable Company Analysis

Valuation – Comparable Company Analysis vs DCF

There are market based valuation approaches such as examining public company trading multiples and comparable transaction analyses, and there are company specific cashflow and earnings based methodologies such as Discounted Cashflow (DCF) analysis.  In this post we review both market based approaches and company forecast analysis. Comparable Transaction Analysis Let’s start with the easier one…

M&A Reps and Warranties

Reps and Warranties: Common Issues and Resolutions

All Purchase and Sale agreements (“PSAs”) have sections called buyer and seller reps and warranties.  The intent of these sections is to disclose and describe any known issues in the business and to address how they will be dealt with.  It is generally accepted that any issues that come up post-sale, but that existed or…