Our Process

Leading The Way In Business Sales And Exit Strategies

Analysis of Business

We will conduct an initial analysis of your business based on the information you provide and is available publicly.   During the interview, we will discuss your goals as well as the sales process.  We will also review of your books and records, usually reviewing the last 3 years of tax returns and profit and loss statements.  Additionally, we will also likely need to review the non-recurring and non-operating expenses to determine EBITDA or discretionary earnings.  We understand that you may not want to disclose too much detail before we establish a mutual interest in working together, so we will work at the pace you are comfortable with.

Broker Value of Opinion and Engagement Letter

We will provide a likely price range for your business based on the available information.  One of the goals is to determine whether there would be a match in terms of the expected sale price and the value we can create for you.  If we can deliver to you expectations, we will offer to represent you.  After that, we will go over the terms of the agreement. We will do our best to address your concerns and, in many cases, amend some of the provisions in to ensure you are comfortable with all the terms.

Pre-Due Diligence

Once we are convinced that we can meet your expectations and you are ready to move forward, we will conduct a deep analysis of your business and perform a detailed valuation.  Clients will review a sample due diligence list and ensure that all financial data is unambiguous and easily verifiable.  Clients will assemble the financial records necessary to support the stated earnings.  We may perform a pre-transaction and a post-transaction financial planning, depending on your needs.  We will also make sure to present the information the buyers like to see and will position your business to be sold at the best price at your preferred timeframe.  Depending on your preferences, we will suggest different deal structures that will improve our ability to generate the best value for you.

Development of Marketing Materials

We will work closely with you in developing compelling marketing materials to ensure we include the relevant information that presents your business in the best light and generates the most value for you.  The seller will approve a public teaser used to generate the initial interest.  We will also prepare a Confidential Business Review which describes the business and provides the answers to most of the preliminary questions the buyers have.  At every step of the process, you will have the final say in terms of what information is included and how it is presented.

Direct Marketing Campaign

What kind of strategic buyer would be interested in your business?  What does your business need to grow?  What are the risks post-acquisition the buyers are likely to face?  What are the synergies available to maximize the sales price?  Answering these questions helps us assemble a list of the potential buyers that are most likely to be interested in your business.  We currently have over 12,000 buyers in our database including strategic buyers, private equity firms, and individual buyers.  Over the years, we have developed strong relationships in the investment industry.  We are well positioned to present your business in the best light and ensure that your business gets a favorable consideration.

Launch of Online Marketing Materials

Most buyers prefer not to disclose publicly that they are selling their business.  They are rightfully concerned that doing so may affect their relationships with the employees, the suppliers, the customers, and the business partners.  To minimize the risk of the exposure, we do not disclose the name of the business we are selling before we vet the potential buyers and we are certain they are a good fit for the business.  In addition, we may consult the seller for every buyer on the case by case basis.  After everything is in place, we will place your business listing on the BizEx website that typically ranks at the top of searches for buying a business in California.  In addition, we will place ads for your business on over 150 US business for sale platforms, including all the major ones such as: BuyBizSell.com, BusinessForSale.com, BizQuest.com, and BusinessBroker.com.  The Confidential Business Review and other documentation gets distributed only to the parties that sign a non-disclosure agreement and pass an initial screening process.

Screen Potential Buyers

Our marketing campaign will create interest from potential buyers.  We will consider all the buyer inquiries and will screen the buyers in order to focus only on the buyers that have the financial capacity and a real interest in acquiring your business.

Expedite Due Diligence

Once you accept an offer, we will facilitate cooperation among all the participants in the due diligence process, including your accountants, attorneys, and lenders, in order to keep the process as timely and efficient as possible.  It cannot be overemphasized how important is to have your books and records in order, so this process can move quickly.  Poor record keeping can drag out a transaction for months and can lead to a diminution of trust between buyer and seller and reduce the eventual sales price.  As the saying goes, time kills all the deals.

Evaluate Offers (LOIs)

Along with your other professional advisors, we will assist you in evaluating the strengths and weaknesses of the offers you receive.  Buyers might want an exclusive period or a financing contingency.  We focus on the business terms of the transaction to give you a fair perspective about the merits of the each offer to make you reach the best decision.

Prepare Documents and Close

Once the due diligence process is complete and the final terms are accepted by all the parties, we will help you with the terms of the contract and provide close support through the escrow process.  We will also assist you in the exchange of information with any accountants, attorneys, and lenders, in order to ensure the process runs smoothly and the transition completes with the least friction.