Our four-phase process is structured to explore all of our clients’ options and to ensure they find the right buyer with the right price and terms.
Phase I: Understanding Your Business
In-depth interview
Positioning your business correctly is critical. In this first step we’ll discuss everything from your financial statements, to clients and staff, to your goals and expectations. Getting to know you and your business is our first priority.
Determine next steps
The outcome of the interview step depends on the information we explore. In some instances we will proceed through the remaining phases of our process immediately. In other instances we may recommend some short-term adjustments to your business to better position it for sale. Many sellers consult with us years before they actually plan to sell. 
Phase II: Preparing Your Business
Market Evaluation
With an understanding of your business and goals in hand, we’ll expand our evaluation to your core market(s). This effort is focused on documenting key factors that may affect the perceived value of your business.
- Is your market area growing or declining?
- Are any of your competitors interested in expanding?
- What factors are prospective buyers utilizing in their business acquisitions?
Identifying and analyzing these and other market variables will help us present your business in the best light possible.
Setting the Price and Terms
Putting a price on their company is a challenge for all business owners. In addition to personal factors and the terms of the deal, there is a monetary concern. If a price is too high buyers will not be interested and if the price is too low sellers will not get the return they should.
In most circumstances we begin with a baseline price of 100% of the industry standard multiple of gross billings. Then we rely on our practical experience to adjust the price according to factors such as size of staff, type of work performed, profitability, business reputation, and market trends.
Each situation is unique, so we always collaborate with our clients and focus on their goals when calculating the price. Some of the goals that affect the price may include:
- Requiring a large down payment
- Seeking a quick cash sale
- Waiting for the highest price the market will bear
- Pursuing a secure income stream
Our combination of analytical data and real-world experience presents your business at a fair price to potential buyers.
Business Sales Memorandum
With the completion of the market research, pricing, and terms steps our staff will prepare a comprehensive Business Sales Memorandum. This confidential document is the cornerstone of our presentations to your potential buyers. It details all of the core aspects of your business and contains the information needed by a buyer to take the first step in acquiring your practice.
Phase III: Marketing and Selling Your Business
Promotion
Now that the Business Sales Memorandum is prepared we are ready to market your business to qualified buyers.
We promote your business through many proven channels, including:
- Mining our database that includes thousands of screened and qualified buyers.
- Networking with our extensive contacts to generate leads and referrals.
- Purchasing high-end industry mail and email lists to reach new prospective buyers.
- Conducting integrated campaigns by phone, fax, email, and mail to contact prospective buyers.
- Listing your business on this site to expose it to thousands of prospective buyers worldwide. Visit our practices for sale page to see how this works.
- Advertising in leading industry journals and newsletters.
- Presenting seminars and attending industry conferences to build relationships with potential buyers.
Our goal is to find multiple buyers, because dealing with more than one buyer increases your options when negotiating price and terms.
Screening Buyers
You have invested a tremendous amount of time and effort in building your business and may like to see it sold to someone who will continue to make it successful. So, price is far from the only determination we use when negotiating with prospective buyers.
We use a screening process that measures prospects on two levels. First, we look at how serious a prospect is about buying a business. Then, we look at how the prospect will fit within your business structure and environment. Some of the key concerns in the screening process are:
- Is the prospect really interested in buying at this time?
- Does the prospect have the financial ability to purchase your business?
- Will your clients and staff interact successfully with the prospect?
- Does the prospect have the professional competence to service your clients?
This screening process ensures that you only speak with the prospects that are serious about buying and that will provide a successful transition for you, your clients, and your staff.
Phase IV: Closing the Transaction
Presenting Offers
With the screening process complete we can focus on generating offers from qualified prospective buyers. Ideally, we will discuss several offers with a focus on:
- Which prospect has the skills and ability necessary to continue your business?
- Are the down payments large enough and terms adequate?
- Do the prospects have good credit?
Answers to these questions and others will help us analyze the quality of each offer and provide the focus needed for the negotiation stage.
Negotiation
With our expertise you will find the negotiation process relatively simple and straightforward. In other words, we handle all of the negotiations in consultation with you.
You will not have to haggle over price and terms. Instead, we’ll ask the tough questions and negotiate an agreement that is a win-win for both parties.
Due Diligence
Your buyers will want to perform due diligence. As in all business transactions "Caveat Emptor" applies. Therefore, it is the buyers’ responsibility to perform an adequate investigation prior to closing the sale.
The Purchase Agreement
A well written agreement that spells out everything—price, terms, etc—can be the difference between a deal that sounds good and one that is enforceable.
Our standard purchase agreement is very comprehensive and covers:
- Terms
- Financing
- Non-competition agreements
- Transition
- Guarantees
- Down payments
- Protection of the unpaid balance
- Repayment schedules
The Transition
It is important for you to provide adequate transition support to the buyer. Our sample client letters get you started and we can help plan conversations with your clients and staff. In addition, with our hands-on experience, we can be your sounding board when questions arise and can coordinate a successful transition for all involved.
|
