The Selling Process

The Selling Process

Submit for valuation (1 day)

Submit For A Valuation

Submit your company information into our appraisal form. A member of our team will get back to you that day to introduce themselves, ask you a few follow-up questions about your business, and then request your financials for review to complete the final valuation (we will complete a mutual NDA first to ensure your confidentiality).

Approximately 1 Day

The Valuation

After the mutual NDA has been signed, we will need to review your tax returns from the past two years, as well as your most recent annual Profit & Loss (P&L) Statement and Balance Sheet. Most buyers will look at the profitability of your business on a Trailing Twelve Month or “TTM” basis to determine their offer, which is why this level of financial detail is need. Our team will review your information under this same “buyer lens,” and we will schedule an Initial Strategy Session call to give you a range of what we believe your business is worth if we sold it today.

Approximately 2 Days

The Agency Agreement

During the Initial Strategy Session we will discuss the services we offer, and if you believe we have earned your business, we will send you the Agency Agreement for review, which outlines our roles and responsibilities acting solely on your behalf (your Agent) to sell your Company.  Upon a successful sale of your business, we will be paid a percent commission of the sales price, which ensures we are aligned at the start of our leadership.  We welcome and encourage you to send the Agency Agreement to your attorney before signing.

Approximately 5 Days

Information Gathering [buyer lens]

Once the Agency Agreement is signed we will setup a Kick-off Call to walk you through the sale process and set expectations for the next [180] days (if you read this page, you will have a great head start!). Our team has several decades of experience buying businesses, so we use our Buyer Lens to gather the information we would want to see if we were buying your business. Putting in this effort upfront allows us to effectively act on your behalf and save you time down the road. After all, your expertise is your business; let us leverage our expertise to sell it. All the information you provide will be used to create the marketing materials and will also be placed in a confidential “data room”, the access to which will be granted only to buyers who have demonstrated the ability to buy and who have submitted an offer (more on this later).

Approximately 10 Days

Copywriter Interview & Marketing Materials

As part of the Information Gathering process, you will have a one-hour interview with our in-house copywriter. The copywriter uses the interview, together with the information you provided, to prepare a compelling teaser (a one-page summary) and prospectus (a longer document) that we will use to market the company. The prospectus will become the master marketing document that explains the history of the business, how it makes money, information on the industry and competitors, and contains recast financials to reflect the true operating profit of the business. You will review and approve all materials before anything is published.

Approximately 5 Days

Bank Financing

Just like when you buy a house, where you make an equity down payment and then finance the rest with your mortgage, a business is often purchased the same way. Many buyers will purchase your business using an SBA loan, which only requires a 10% down payment, meaning they will borrow the other 90%. This is great for buyers because it allows someone with only $250,000 to purchase a $2.5 million dollar business, and creates a much larger pool of buyers for you, but it also carries some risk. What if you make it nearly all the way through the diligence process just to learn the buyer has poor credit and can’t inance the loan? Wouldn’t you want to know this in advance? That’s where we come in. We will organize the debt financing for the deal and only bring in buyers who have been pre-approved and have demonstrated the ability to buy.

Approximately 5 Days

We Find the Perfect Buyer

We will market the deal to our buyer database. We currently have over 100,000 entrepreneurs, private equity firms, and family offices ready to buy your business. If it makes more sense for a “strategic” buyer (i.e., a much larger company in your industry, think Google or GE) to acquire your business, we will create a target list and reach out to them directly. Along the way, prospective buyers will have several questions about your business, and we will do our best to answer the questions ourselves, but occasionally we will have to contact you for the answers (nobody knows your business better than you), as well as setup phone calls between you and the buyers who have shown they are serious. As we refine the prospective buyer pool further, only buyers that have been pre-approved for financing and have demonstrated the ability to buy will be granted an in-person meeting with you to discuss the business in detail

Approximately 45 Days

Sign the Letter of Intent (LOI)

All interested and pre-approved buyers submit a Letter of Intent or LOI to purchase your business. This is a formal offer that states if Due Diligence is successful (discussed next), then the buyer agrees to complete the transaction. We will review all offers with you and help you decide which offer is best in terms of price, terms, and who the buyer is, and will negotiate with buyers until we reach a final price and structure that works for everyone. The buyer of the signed LOI then receives an exclusive Due Diligence period to independently verify all the facts about the business.

Approximately 5 Days

Buyer Due Diligence

The buyer will be given an exclusive Due Diligence period to independently verify all the facts and details about the business including but not limited to financials, customers, vendors, major contacts, employees, lease agreements, and post-sale transition to ensure the sale works for them (these “contingencies” will be outlined in their LOI). The buyer may request phone calls, meetings, and/or specific analyses to help them reach their decision along the way.

Approximately 45 Days

Contract Development

The buyer is responsible for providing the contract to complete the sale.  They send an initial “purchase agreement” that we advise you have reviewed by an attorney until all terms are agreed upon.  If conversations during the LOI stage are thorough and made in good faith, then this purchase agreement should mostly mirror the terms spelled out in the LOI (the purchase agreement is just the formal legal document to finalize the sale).  The type of purchase agreement will depend on the specifics of the transaction.

Approximately 21 Days

Escrow & Closing

We use a third party escrow service (either an attorney or escrow company) to manage the actual transfer of cash between buyer and seller. Once buyer confirms receipt of the assets, the escrow company releases the cash to you, which also covers our fee. An escrow account is used to protect both buyer and seller to ensure that all parties have completed their respective obligations before releasing any funds.

Approximately 3 Days

Post-sale Transition

After the deal closes there is a transition period where you help the new buyer take over the business operations, meet employees, and communicate the sale to any stakeholders. The specific terms of this transition will be negotiated at the LOI stage and will contain specifics related to time commitments and expectations.

Approximately 1-6 Months

We currently have over 100,000 entrepreneurs, private equity firms, and family offices ready to buy your business

  • Enter a Few Details Below to Receive Your Business Valuation

  • This field is for validation purposes and should be left unchanged.
  • Let Us Know What Questions You Have.

  • This field is for validation purposes and should be left unchanged.
  • Enter a Few Details Below to Receive Your Free Business Valuation

  • This field is for validation purposes and should be left unchanged.