Selling A Business – Dale Eyeler – Northern California Business Sales

Selling Your Business with Coldwell Banker Commercial

THE PROCESS FOR MANAGING THE SALE OF YOUR BUSINESS: You have chosen one of the most respected mergers and acquisitions consultants in the area. With twenty years experience in business, Coldwell Banker Commercial has sold businesses of all types and sizes for top dollar.

Unlike most brokerage firms, We have a team of professionals with a wide range of experience. All our Principals have owned and managed their own businesses and understand the challenges that face business owners. When we represents you, you benefit from the experience of our entire team. Here is the process we will utilize to sell your business.

Both Coldwell Banker Commercial and Dale Eyeler come with experience and financial knowledge to place you in the best possible position for transitioning your business to new ownership.

DETERMINING YOUR OBJECTIVES:

There will be an introductory meeting to gain an understanding of your business and your personal objectives. We will provide you with a signed Confidentiality Agreement for your protection. Your needs, objectives, business history and basic financials will be discussed. We will discuss possible options for the transaction. Selling options may include: sell and retire, sell and remain with the Company, take on a partner, receive a capital infusion, etc. Thinking this through in advance will expedite the process of finding a suitable alternative.

PRELIMINARY PLAN & LETTER OF ENGAGEMENT:

Once we have agreed on the objectives and have gained an understanding of your business, Prestige Business Sales will recommend a preliminary action plan. A Letter of Engagement will be signed which will outline the terms of the assignment, the fee structure and any special provisions or stipulations for the engagement.

INFORMATION COLLECTION:

You will be provided with a list of required information. It will involve gathering financial, as well as general information, on all aspects of your business. Proper preparation is crucial for the best presentation of your business and is also the first step in establishing the confidence of a Buyer. Adequate information will enable a Buyer to gauge their level of interest.

FINANCIAL PRESENTATION:

Financial statements are prepared for both management control and tax purposes. However, there are occasions when prepared financial statements do not adequately reflect the financial returns from your business. We will restate your financials using industry-accepted methods to establish the true financial returns being generated. The recasting of financial statements requires identifying and adjusting for normalized owner’s salary and fringe benefits, as well as one-time, non-recurring and non-applicable expenses. A Buyer must be educated to accurately interpret the recast financial statements in order to recognize your Company’s true worth.

VALUATION:

Many people will recite the rules of thumb for valuing businesses. We are familiar with these guidelines but utilizes a broader and more analytical approach when valuing a business. Determining the fair market value of your business is an involved and complex procedure, with constant movement based upon a changing marketplace. Proper consideration must be given to your Company’s strengths, assets, historical financial performance and projections, along with the many intangibles inherent in your Company. Market conditions, industry trends and public perception will impact value. Capital availability as well as your flexibility with terms will also impact value.

We utilize several different valuation methodologies to determine the right price for your business. In addition to financial and industry analysis, comparisons will be made with similar companies that have sold recently within your industry. By determining the highest price a fully informed Buyer is willing to pay for your Company, you will avoid the risk of losing a timely sale by overpricing the Company, or leaving money on the table by undervaluing your business.

PREPARATION OF A MARKETING BRIEF:

Your business will be confidentially marketed in several ways. Our website is regarded as one of the best in the industry. We will prepare a brief description of your business and post it on our website. Depending upon our agreed marketing strategy, we will also display it on up to over 40 additional websites. We have over twenty search engines that refer interested Buyers to us. We receive thousands of hits on its website each week. We also have a huge data base of qualified buyers that we notify each time we get a listing, that and a netword of over 300 agents helping to seek qualified buyer.

PREPARATION OF A CORPORATE PRESENTATION:

The business must be properly packaged with all applicable records and facts organized and documented. The profile of your business ensures presentation in a favorable and factual light while providing the acquirer with a document to follow and review. The profile educates Buyers on the many intangibles inherent in your Company and the opportunities for growth, hence raising the perceived value to the acquirer. These intangibles include name recognition, market niche, vendor relationships, operation and production systems, distribution channels, customer loyalty, trained and skilled employees, and many more.

IDENTIFYING CRITICAL AND CONTINGENT ISSUES:

We will work together to identify and be prepared to address issues such as leases, regulations, licensing, key employees, minority shareholders or other concerns that might apply to your specific situation. Failure to address these issues early on in the process can potentially lead to the loss of qualified Buyers, along with months of wasted activity.

MARKETING STRATEGY I CONFIDENTIALITY:

In addition to the marketing brief that will be posted on the internet, we will work together to determine the most likely type of Buyer and how to approach them directly and confidentially. There are a number of different marketing strategies available, which will provide the necessary exposure while maintaining strict confidentiality. There are steps that can be taken to guard against your competitors, employees, vendors and customers ever finding out about the pending sale of your business.

We will develop a strategy for bringing the Company to qualified Buyers. We will seek a Buyer that will perceive the greatest value and synergies in your business. Identifying the right acquirer for your business can significantly impact its valuation.

PRE-QUALIFICATION:

We will screen and qualify potential Buyers as to their interest level, management skills, fit and ability to meet the financial requirements of the transaction. Before revealing the identity of your business or discussing any sensitive information we will obtain a Confidentiality Agreement from all interested Buyers. Only qualified Buyers will be provided with a copy of the profile. A follow up phone discussion will answer preliminary questions.

INITIAL MEETING:

After the initial phone discussion with a potential Buyer, we will host a brief introductory meeting. The purpose of the meeting is to allow the Seller and the Buyer to gain an understanding of background, motivation, prospects and other high level items.

SITE-VISIT:

Working together to maintain confidentiality, the potential Buyer will be provided with the opportunity to visit your facility. Generally there are multiple site visits. This is a good forum for the Buyer and Seller to develop a favorable rapport. More detailed information can then be exchanged. One of our qualified representatives will coordinate the visit and be present.

PURCHASE OFFER / NEGOTIATIONS:

Upon a meeting of the minds regarding the key transactional issues, a written offer to purchase, generally in form of a Letter of Intent, will be prepared. It should outline the purchase price, terms, conditions and any contingencies. Proper compliance with this step can save thousands of dollars in legal expenses.

DUE DILIGENCE:

The offer is usually contingent upon the Buyer or their representatives verifying the accuracy of the Sellers financial and operational representations. This detailed review is typically completed within 30 days of the signing of the Letter of Intent.

CONTRACTS:

After all major issues are resolved and the Buyer’s accountants and attorneys are satisfied with your representations, contracts can be drafted and negotiated. Financing can be arranged. This can be the most trying time in the entire process. We have established a solid network of transaction-oriented attorneys, appraisers, bankers and accountants to assist if needed. Many times, an independent attorney or accountant can expedite the process of closing the transaction and save significant expense for both the Seller and the Buyer.

CLOSING:

We will coordinate the closing, arrange for funds to be transferred, applicable fees to be paid and it is at this point that you will have realized your goal.

TRANSITION PERIOD:

This typically involves a period of cooperation in which you will assist the acquirer in achieving a seamless transition. This includes transferring of key relationships and proprietary information needed to successfully operate the business.

IN CONCLUSION:

The entire process can take a few weeks, a few months or a few years depending upon the circumstances. In any case, we will assist in every step of the process. We look forward to working with you on this very important assignment. Please send me a message and/or your phone number so that we can talk more about selling your business. All conversations are confidential.

Get in Contact Today:

Please send me a message and/or your phone number so that we can talk more about selling your business. All conversations are confidential.

Dale Eyeler

Business Sales & Acquisitions