SELLING

Is It The Right Time To Start Planning Your Business Exit?

Our 6-step process called “AIM & ACT” provides an effective guide to successfully selling your company. AIM allows you to uncover your exit goals, develop an exit plan, improve your company’s value, and market your company to a broad number of buyers. ACT supports the due diligence and closing process to ensure you can transitioning to the next chapter of your life without any doubts or regrets. In every step of the process we maintain the highest level of document security and communication confidentiality to protect your interests.

OUR 6-STEP SELLING PROCESS: AIM & ACT

Step 1: Assess

Business owners must first assess their goals, future needs, and the value of their business to decide/ if it is the right time to sell. We work with company leadership to assess your goals and objectives. Then, we formulate a strategy to secure the resources your company needs to achieve its goals and become more valuable along the way.

Are you ready to sell? How much do you need to get out of the business?
Is the business ready? How much is the business worth?
Involving others in the process

Deliverable: Exit Goals, Exit Plan, and Potential Buyer Criteria
Duration: 1 to 3 weeks

Step 2: Improve

Whether you’re ready to sell in the next 6 months or the next few years, you can Improve your company in cost-effective ways that will make it more attractive to potential buyers. With a strategic plan in hand, we set out to improve your company in preparation for a sale. By making even minor improvements before going to market you can increase the selling value of your company considerably.

Business improvements based on how much time you have
Analogy – like selling a house
How to select highest return improvements that drive value

Deliverable: Executive Summary and Confidential Information Memorandum
Duration: 1 to 3 months

Step 3: Market

To effectively market your company for sale, it is critical to promote the company’s most important value contributors. High-quality documents are required to cast the best possible light on your company and to attract high-quality buyers. We search for potential buyers all across the nation and around the world.

Broker vs. No broker
Analogy – Leap of faith
Data room - document bottleneck, confidentiality
Marketing the business: Adjusting financials, marketing tools

Deliverable: List of high potential buyers
Duration: 2 to 4 months

Step 4: Agree

Selling your business is different than selling your product or service. But, you can learn what to do and say to appeal to potential buyers. We negotiate your transaction terms confidently – usually facing multiple competing offers – in order to achieve the deal that your company deserves. Finally, we help you select the best fit and agree on the best terms.

Talking to potential buyers – Turn ons and Turn Offs
Evaluating the offer - What’s a good offer?
Transition Periods – Become your own employee
Bidding War vs. Zero Offer Scenario

Deliverable: Multiple Offers and Binding Letter of Intent
Duration: 2 to 4 months

Step 5: Close

A successful close means completing the due diligence process in a short time frame, without renegotiation of the deal terms and closing. When and only when you are completely comfortable with the terms on which we have agreed, we close the deal and transfer the funds into your pocket.

Due Diligence – What is it, how it can go wrong
Case Study - Doyen
Plan for transition, talking to team
Reasons deals fall through

Deliverable: Fully executed definitive agreement
Duration: 1 to 3 months

Step 6: Transition

After closing the deal, you are now ready to transition into the next chapter of your life. Whether this means remaining involved in the company, starting another company, or retiring, you’ll have our support.

Plan for immediate or gradual transfer of authority and responsibility to new owners
Budget agreed upon if earn out is involved
Consider plans for the next chapter of your life.

Deliverable: Transition Plan and Earnout Budget
Duration: 1 to 3 months

CASE STUDIES

Learn about how we have helped some of our clients achieve successful business exits. Let us know if you are ready to AIM (Assess, Improve, Market) for your future and ACT (Agree, Close, Transition) now or in the next 12 to 24 months. It is never too soon to learn more about the process.

[vc_hoverbox image=”1058″ primary_title=”Safewire LLC Acquired by Stryker Spine” hover_title=”Safewire LLC Acquired by Stryker Spine”]Developer of precision instrument product lines for minimally invasive spine surgery acquired by Fortune 500 distributor of medical products.

Exit Experts supported the founder of Safewire, Wyatt Geist, on the development and growth of the company since 2010. We helped raise over $5M in debt and equity capital for SafeWire, and then led the sale of the company’s operations to Stryker Corporation in April 2016 for $6.5M upfront plus a 5% royalty for 7-years. The total transaction value is expected to exceed $9.5M.[/vc_hoverbox]

[vc_hoverbox image=”1363″ primary_title=”Packaging Machinery Manufacturer Acquires Product Line” hover_title=”Packaging Machinery Manufacturer Acquires Product Line”]

Manufacturer of high-speed horizontal form fill and seal packaging machinery has acquired the exclusive sales and manufacturing rights to a broad line of capping machinery.

Exit Experts was the exclusive M&A sell-side advisor on this transaction. We created high-quality marketing documents and executed a broad search campaign directed at potential buyers around the world. In total, 23 companies expressed an indication of interest, 6 executed an NDA, and 3 submitted offers. The transaction closed in January of 2021 for an undisclosed 7-figure amount.

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[vc_hoverbox image=”1058″ primary_title=”Safewire LLC Acquired by Stryker Spine” hover_title=”Safewire LLC Acquired by Stryker Spine”]Developer of precision instrument product lines for minimally invasive spine surgery acquired by Fortune 500 distributor of medical products.

Exit Experts supported the founder of Safewire, Wyatt Geist, on the development and growth of the company since 2010. We helped raise over $5M in debt and equity capital for SafeWire, and then led the sale of the company’s operations to Stryker Corporation in April 2016 for $6.5M upfront plus a 5% royalty for 7-years. The total transaction value is expected to exceed $9.5M.[/vc_hoverbox][vc_hoverbox image=”1363″ primary_title=”Packaging Machinery Manufacturer Acquires Product Line” hover_title=”Packaging Machinery Manufacturer Acquires Product Line”]

Manufacturer of high-speed horizontal form fill and seal packaging machinery has acquired the exclusive sales and manufacturing rights to a broad line of capping machinery.

Exit Experts was the exclusive M&A sell-side advisor on this transaction. We created high-quality marketing documents and executed a broad search campaign directed at potential buyers around the world. In total, 23 companies expressed an indication of interest, 6 executed an NDA, and 3 submitted offers. The transaction closed in January of 2021 for an undisclosed 7-figure amount.

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FREQUENTLY ASKED QUESTIONS

What is my company worth?

We use three methods for determining the value of your company: Discounted Cash Flow analysis, an analysis of recent comparable transactions, and replacement valuation. We use the three methods to come up with a range of valuations, and then arrive at a dollar amount that makes the most sense for your company based on the current M&A and economic environment.

How do you find the best potential buyers?

Clients who keep the lines of communication open with us and with their potential buyers are usually the most successful in landing an acquisition. If you’ve ever heard the phrase “Time kills deals”, it is very true of the mergers and acquisitions process. The most successful sellers are responsive and engaged in throughout the entire acquisitions process.

How do you minimize distractions from our business?

It is important for sellers to be straight-forward about their goals from the onset. Being honest about your intentions and plans for your company post-acquisition (i.e. ensuring key management/employees stay with the company, keeping key partnerships, etc.) is key to establishing a trusting relationship.

How long does the process take?

6 to 12 months is typical for our clients to receive 1 to 3 offers