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

Buyer List

Constructing a Buyer List

When assembling a buyer list, it does not necessarily need to include immediate competitors.  Sellers will know the reputation of these companies in the marketplace and may not want their legacy in such a company’s hands. It is important to understand all of the objectives/considerations of the seller.  Realizing the most money possible is an…

Purchase and Sale Agreement

The Purchase and Sale Agreement Explained

The Purchase and Sale Agreement (PSA or SPA in the case of a Share Purchase Agreement) is one document in a set of final documents that completes a company divestiture transaction.  Other documents typically include employment agreements, escrow agreements, non-competition agreements, releases, and more depending on the type of transaction being contemplated. The closing documents…

buyer for my business

Is There More Than One Buyer For My Business?

When niche businesses receive unsolicited interest from key customers or suppliers, this can leave the owners wondering,.. is there another logical buyer for my business?  Should you consider hiring an agent at that point and engage in a process that could take many months to complete or take the bird in the hand? Fiduciary duty…

business due diligence

What is Due Diligence and What Does it Consist of?

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…

business broker

Business Broker / M&A Advisor – What Do They Do?

What is the difference between a business broker and an M&A Advisor?  The main difference is in the size of transactions they work on.  Business brokers deal with smaller businesses, retailers, restaurants, franchisees while the term M&A Advisor is more associated with investment banking firms who work on more complex and larger transactions. In “How…