MERGERS & ACQUISITIONS
Mergers & Acquisitions
Are you really ready to sell your business?
Ask yourself these 10 questions to see if you’re ready to sell your business:
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Have you obtained a certified valuation stating how much your business is worth?
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Have you performed the due diligence necessary to determine that your corporate records are in order so that a timely transfer can be made to a new owner?
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Do you have well-documented systems and automated processes in place so that the buyer can step in and immediately perform at a high level?
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Do you have a plan to grow your company to make it sell for the highest value possible?
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Do you have a business continuity (buy-sell) agreement in place that directs the activity of your business in both a living and after death transfer of your company?
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Do you have a compensation system in place so that your key employees will remain motivated to stay after the sale? Do you have non-compete agreements in place with your key-employees so that they can’t take your customers, trade-secrets, etc.?
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Do you have financial controls in place that help you obtain financial statements that accurately report your company net profits?
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Do you have a written Exit Plan in place that holds your advisers accountable for specific activities in specific timetables?
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Do you know when you plan to sell your business and to what type of buyer? Do you know what the tax effects will be for that sale?
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Do you know how much money you need to live for the rest of your life? How much of that money will you need to obtain outside the sale of your business?
→ If you answered “YES” to all of these questions you may be ready to begin the process of selling your business.
Don’t tackle this alone!
Business owners are able to do many things themselves, but selling their businesses should not be one of them. It’s true, no one knows your business better than you, but selling a business takes much more time and energy than you should spend. It takes focus away from the “day-to-day” operations and takes much more planning, skill and emotion than many owners might imagine, or care to add to their workload.
Other things to consider when selling your business:
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It will be difficult to keep confidentiality throughout the sales process
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You may not have the requisite knowledge necessary in accounting, law and taxation
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You may not have the skills needed to create the marketing materials needed to sell your business
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You may not have access to the software and databases that will be important in determining the sales price to charge in today’s market
The best way to make sure to obtain the highest possible sales price is to hire a Certified Mergers and Acquisition Advisor well in advance of the projected sale date.
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Has the skill and experience to lead you through the process of selling your business in an effective and professional manner
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Will coordinate the efforts of the lawyers, accountants and the rest of the professional advisor team
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Has access to a database of buyers who are ready and willing and have the ability to buy your business
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Has the skills to evaluate the market and help you obtain the most optimum price
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Will offer advice, judgment and reason during the often-overwhelming sales process
A Certified Mergers and Acquisition Advisor:
How does the sales process work?
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The average sales cycle lasts from 9 to 12 months. While the sales process occurs, the business owners’ role is to direct the business as if they were going to continue owning it, thereby adding more value on a daily basis.
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The Certified Mergers and Acquisitions Advisor will confidentially market the business, finding, educating, screening and negotiating the terms of sale with potential buyers. We will facilitate the entire process and work with the other professional advisors through until completion.
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Before starting a discussion with a potential buyer, a Non-Disclosure Agreement (NDA) must be signed. (Most potential buyers never make it to the NDA stage. A large percentage of those who do get past the NDA stage do not qualify to purchase and are not capable of moving further along the process.)
If you are considering the sale of your business and want the process to be completed effectively with the utmost care, give us a call today. We will answer all of your questions and keep your sale confidential.
