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

Strategic Buyer

What Will a Strategic Buyer Pay?

What will a strategic buyer pay?  Ideally a premium, but what defines a premium? By definition, it is higher than the average price.  But if the market will ultimately determine the price, where do you start? Start With the Notional Value A notional value determination is one in absence of an open market transaction, in…

risk management

Managing Risk in Business to Drive Long-Term Value

Running a business requires taking risk.  Managing risk in business creates value.  Here we outline how to manage risk to drive value.  If your revenues are project oriented with little opportunity for repeat business, or you operate in an industry with low barriers to entry, or a people dependent business such as consulting, advertising or staffing, then…

asset

Top Five Impediments to Securing Exceptional Value

What are the main impediments to securing exceptional value for small private companies?  Many owner-entrepreneurs develop expectations for their business’ value based on news items and industry chatter about M&A and financing activity.  However, the small percentage of transactions that make the headlines are not reflective of the average transaction.  The factors we see most…

Situations to Avoid When Selling Your Business

12 Situations to Avoid When Selling Your Business

12 situations to avoid when selling your business.  Here we provide common challenges to realizing full value in a sale process. A Must Sell Situation Selling on strength should be your goal but be mindful that the selling window can close anytime.  If you are in a must-sell situation it is critical not convey this…

Buyer List

Constructing a Buyer List

When constructing a buyer list for a sale mandate, it does not necessarily need to include immediate competitors.  Sellers will know the reputation of these companies in the market and may not want their legacy in such a company’s hands. It is important to understand all of the objectives and considerations of the seller.  Realizing…