For most seller clients, the sale of their business is a unique experience. They only do it once and have one chance to do it right. Unlike virtually all buyers, most sellers are not experienced in the M&A process. That puts them at a distinct disadvantage in negotiations. A seller can level the playing field by engaging our firm. We will advise you on most facets of a transaction, including what is usual and customary. We do not provide legal advice and we will always suggest additional specialized expertise when needed.
Characteristics of a Seller Client:
- CEO or business owner who has made a decision to divest as opposed to “testing the waters”.
- Divestment may be a subsidiary, division, or product line of a publicly traded company or larger privately held business.
- Privately held businesses being sold are generally achieving $5 million+ to $250 million+ in sales and are profitable.
Stages for a Seller Project:
- Obtaining a clear understanding of the client’s goals and concerns.
- Reviewing all strategic and marketing options with the client, which may include a segment sale, a facility sale or lease, a consolidation, royalty payments, and more. Marketing may be using a level playing field approach, a controlled auction, or a buyer exclusive.
- Completing a business valuation and reaching an understanding with our client as to value and structure expectations.
- Developing a Confidential Information Memorandum (CIM) that provides the key information about the business that pre-screened potential buyers need to make an informed decision to proceed with a client visit.
- Developing the list of potential buyers for client approval, discussing known strengths and weaknesses and timing of contact.
- Developing a customized or electronic letter to introduce the project to potential buyers to be delivered with the client-approved Non-Disclosure Agreement.
- Assisting client with each buyer visit and all related prep and follow-up to ensure client time is spent as productively as possible.
- Negotiating the non-binding Letter of Intent general terms with client guidance and attorney review (recommended).
- Coordinating due diligence and legal document timetables, participating in meetings as needed, and conducting follow-up to ensure momentum is maintained.
- Celebrating a successful closing.