The Business Seller's Guide
Provided by CHV Group Business Brokerage
Timing is always right when you are prepared
Your Expert Business Broker
You hire Employees to help you run your Business, and professional help when needed.
We bring a professional process to find you the best buyer and help you negotiate the best deal.
Confidentially and with Integrity
Our Value - We bring the expertise:
- Be the "broker" between Seller and Buyer, keep the emotion low and moving the deal to a close
- Run a confidential process
- Prepare the Business for Exit
- Offer a Market opinion of Value
- Position the Business to attract the highest potential of Buyers
Your Value: you keep focus on running your Business and keep the value.
Questions for the Seller
- How is your Business positioned against your competition, Industry benchmarks
- What is your Customer concentration, Customer profitability
- What is your product or service lifecycle and position in the market
- Cash Flow, EBITDA and Sellers Discretionary Earnings, do you have 3-year minimum CPA certified history. (We can do SDE for you)
- Do you have a 3-5-year business plan
- Is your expected market value a wish, "must" have or a value that will meet the test in the market
- Would you buy your Business as it is offered in its current state and your valuation?
- Did your Financial Planner map out your future portfolio
- Did your CPA develop a Tax Strategy for the Sale
We manage the process to your answers
Decision Time Outcomes
Preparation has outcomes:
- Ready and committed to exit, high agreement on process and value
- Business is ready, Owner ready to test the market, translates into "if the offer is right"
- Owner is ready, business shows a GAP value versus needs?
The Selling Process
- Discuss potential deal structure
- Tax implications, net payout
- Discuss Due diligence requirements
- Establish the Marketing Strategy
- Strategic or Financial
- Compile a list of Potential Buyers (Strategic)
- Prepare Confidential Teaser
- Send Teaser to Potential Buyers
- List Business on relevant Websites
- Prepare Confidential Business Memo
- Confidentiality – NDA requirement
- Qualify Interested Buyers
- Send CBM to vetted Buyers
- Select and Present interested Buyers to Seller
- Qualified; financial and match
- Assist negotiating Term Sheet, LOI
- Assist in the closing
- Due diligence
- Agreements
- Closing
Buyer Options
- Family Members; Employee
- ESOP
- Industry insider – Competitor/Customer
- Strategic
- Private Equity / Venture Capital
- Add on or Platform
- Family Office
- Individual Buyer / Operator
The Business Broker Value
- Maintains confidentiality
- Educates
- Sounding Board
- Buffers emotions
- Negotiates on behalf of Seller
- Keeps the deal going and party's focused
- Let's you Focus on the Business
The Do's and Don't's in Selling
DO's:
- Spend sufficient time to prepare
- Build your Team of Experts
- Build value based on professional appraisal
- Have audited reports for at least 2 years
- Get Tax advice on all aspects of Selling
DON'T's:
- Overprice the Business
- Expect to be paid 100% Cash
- Be unprepared to furnish documentation
- Hide legacy issues to last minute
What Happens the Monday After?
Seller's remorse- Every single founder wonders if they could have sold their business for more than they got. No, move on!
Once you sold, you have sold. Hopefully, your transition Team has protected you with a contract that lets you sleep at night and has negotiated you enough money to enjoy retirement.
Passion, is most likely what made you a great owner and the appreciation you received from Customers and Employees –now what?
Seller's Value Enhancing Moves
- Prepare for a transition time, get the Buyer a head start
- Consider Seller financing
- Expect the Buyer to negotiate the "best" deal, communicate straight and firm
- Do your gut check early on the Buyer, you do not need to love them, but like helps closing deals
- Choose an M&A Attorney for the legal finals, litigators are deal breakers
Find a New Passion:
- Rest and contemplate for a while
- Exercise, walk, hike
- Engage in charities
- Identify values important to you, match with future activities
- Work off your bucket list
- Learn a new skill
Ready to Begin Your Business Sale Journey?
Let CHV Group guide you through every step of selling your business. With our proven process and expertise, we'll help you maximize your business value and find the perfect buyer.
Contact CHV Group Today
