How we maximize value when you sell

We have a four part process that increases the value of the business:

  1. 1) Optimize the value of the company, including building the strategic plan for the business
  2. 2) Help build the team to drive the strategic plan and support a sales process
  3. 3) Develop the content which demonstrates the value of the business
  4. 4) Support the team as an advisor/counselor throughout the process

Optimize the value: We first view your business with the eyes of a buyer, identifying strengths and weaknesses. Then we build a strategic plan to develop strengths and addresses weaknesses. To learn more, read about how we accelerate business value.

Help build the team: You will need to have the best business team and sales process team to capture the most value for your business. The strategic plan we develop will create needs for business leaders who can drive critical initiatives. We can help you identify and hire these leaders. The sales process, done right, requires a broad team, including investment banker, deal lawyer, and accountant, among others. We can run a process to help you get the best team for your business.

Develop the content: Once you start a sales process, you cannot just hand over the result to the investment bankers. Think about it for a minute. If you had the chance to win a major new customer that could increase sales by 20%, this would be a major focus of your time and energy to make sure you did everything you could to win that deal. Selling your business is the biggest deal of your career. Winning that customer might increase your profits by 20%, but you will likely sell your business for between 5X and 10X EBITDA. No other deal comes close in affecting as much value.

Throughout the sales process, we work side-by-side with management to develop the best content about your business. There are four critical documents that drive business value:

  • 1) Analysis of “add-backs” – EBITDA adjustments that increase your business value by your sales multiple
  • 2) Management’s input into the Confidential Information Memorandum – Investment bankers build this document but if management does not have strong input into the content, then the output is a “series of lists” checking boxes but not telling a compelling story
  • 3) The Management Presentation is made to a short list of potential buyers – again investment bankers will lead the process but they do not create compelling content which tells the story of the business
  • 4) Due diligence responses – Once an LOI has been signed, there is a 45-90 day period of confirmatory due diligence. Management will be responsible for responding to numerous requests and explanations for items discovered during due diligence.

We play a critical role developing the content that makes a compelling story for why your business is an attractive one. We do not manage the sales process (that is the investment banker’s role) but we do enable the business to be well positioned so that investment bankers can generate a successful outcome for you.

Support your team as an advisor/counselor: During the sales process run by the Company’s investment banker, we will assist you as part of the management team sitting side-by-side with your leadership team. A business sales process is very challenging and time consuming. For most owners, it is the first such process they have gone through. Working with someone who has “seen the movie before” from the perspective of the owner/operator can be very helpful.