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The Process of Selling a Business
The Preparation Stage
- Understand what you are currently worth by taking the Exit Valuation Survey, and learn where your Multiple is today
- Understand what a comparable business that is prepared for sale and a strong but achievable Multiple would be worth
- Be clear on what you need to do to increase your Multiple to where it should/could be - and how to do it
- Understand what you need to meet your Financial Goals Post transaction
BUILD YOUR TEAM
- Value creation expertise
- Robust CPA/Accounting expertise
- Financial Planning expertise. And eventually,
- Legal expertise, but that’s down the process a bit
Getting Your Business Ready, In Shape, and
Introduced to the Marketplace
- Comprehensive Market research for Ideal Buyer profile including Financials and Strategics.
- Develop the CIMS (Confidential Information Memorandum) once the business has been restructured to reflect a higher Multiple and EBITDA is as strong as possible
- Solicit requests for information from the marketplace
- Upon receipt of NDAs, circulate CIMs reports
- Establish a Calendar of events that will include:
- Circulation of CIMS reports,
- LOIs
- Responses to Qualified Buyers
- Negotiation period
- Due Diligence
- Closure
The intent of the calendar is to encourage an auction… which may or may not happen, but that is the intent.
Qualifying Offers
- Conduct Management meetings (On or Off-site) for parties of interest
- Receipt of Letters of Intent as a result of the CIMs report
- Response to LOIs
- Negotiate Letters of Intent, not only based on price but based on the dynamics of the “fit”
- Obtain Final signed LOI
- Coordinate the Due Diligence process and create Data Room.
Closing
- Work with appropriate legal advisors to draft Definitive Purchase and Sale Agreement
- Resolve outstanding issues
- Define Working Capital balances to be left in business post-sale
- Execute the documents and close the process.
How It Works
It's time to face the truth. If you don't plan your exit correctly, you could end up working until you die. Your journey to a successful sale and increasing the value of your business by 30-50% starts with taking our Exit Valuation Survey. This tells us exactly where you are now, the exact performance of your business, and what you need to do to improve. You can access your buyer Risk Report and speak to our analyst team on a complimentary call to discuss your results, increasing value and exit options.
TAKE THE SURVEY
Discover how your business scores in
the 7 key drivers of valuation
ACCESS RESULTS & ANALYST
Understand the risks a buyer sees
when valuing your specific business
INCREASE BUSINESS VALUE
Implement the "7 Pillars Of Value Creation" and increase your business value
© 2024 ETFB. All Rights Reserved
*The Lower Middle Market is comprised of businesses worth $5-$30 million, typically having EBITDA of $1 million - $4 million.
The 7 Pillars of Value Creation is our name for our work as Business brokerage services and related consulting pertaining to business sales, mergers, acquisitions and business valuation. Exit The Family Business the downloadable guide and any accompanying assets or affiliates are provided for informational and educational purposes only. It is not intended to provide tax, accounting or legal advice, nor is it an offer or solicitation to buy or sell, an endorsement or sponsorship of any company, security or fund. Certain owners, officers or affiliates may be associated with investment firms and may make referrals from time to time for such services, but this does not constitute investment advice, nor should it be construed as Exit The Family Business being in that business. We always suggest you seek professional advice. Past results are not a guarantee of future results.