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Strategic process for selling companies, from strategy
to closing
01
Define the strategy
-
Understand the seller's goals.
-
Choose a sales strategy: one-to-one approach, formal call for offers, etc.
-
Set a timeline.
Strategic process for selling companies, from strategy to closing
.jpg)
01
Define the strategy
-
Do a preliminary assessment of the company's value based on comparable transactions, earnings, cash flow and assets.
-
Prepare a list of potential buyers by order of preference.
-
Zero in on advantages for potential buyers: market penetration, economies of scale, enhanced growth vs. internal development, elimination of competition, technology transfers, etc.
-
Identify potential buyers by diving deep into industry financial databases and reaching out to our international network of contacts.
03
Draft company profile documents
-
Prepare a summary evaluation of the company’s profile as a tool to approach potential buyers. The summary does not reveal the seller's identity.
-
Draw up a full profile (Confidential Information Memorandum) covering topics such as the company history, products and services offered, operations, major clients and suppliers, human resources, main assets, competition and selected financial data.
04
Reach out to potential buyers
-
Contact the selected potential buyers.
-
Complete the formalities for the non-disclosure agreements.
-
Distribute the full profile only to serious potential buyers who have signed a non-disclosure agreement.
-
Organize presentations, offer tours of the facilities and answer questions.
-
Receive preliminary offers.
05
Undertake negotiations
-
Evaluate the offers and negotiate the provisions.
-
Determine earnout clauses, officers' roles following the transaction, consideration provided (cash and/or stock), etc.
-
Decide on the due diligence process.
-
Receive and analyze final offers.
06
Close the transaction
-
Assist the company’s lawyers and accountants in the due diligence process and contract negotiations.
-
Review and comment on material transaction agreement clauses.
-
Expedite the closing process, including the transition of power.
02
Summary valuation and identify potential buyers
-
Do a preliminary assessment of the company's value based on comparable transactions, earnings, cash flow and assets.
-
Prepare a list of potential buyers by order of preference.
-
Zero in on advantages for potential buyers: market penetration, economies of scale, enhanced growth vs. internal development, elimination of competition, technology transfers, etc.
-
Identify potential buyers by diving deep into industry financial databases and reaching out to our international network of contacts.
03
Draft company profile documents
-
Prepare a summary evaluation of the company’s profile as a tool to approach potential buyers. The summary does not reveal the seller's identity.
-
Draw up a full profile (Confidential Information Memorandum) covering topics such as the company history, products and services offered, operations, major clients and suppliers, human resources, main assets, competition and selected financial data.
Strategic process for selling companies, from strategy
to closing
04
Reach out to potential buyers
-
Contact the selected potential buyers.
-
Complete the formalities for the non-disclosure agreements.
-
Distribute the full profile only to serious potential buyers who have signed a non-disclosure agreement.
-
Organize presentations, offer tours of the facilities and answer questions.
-
Receive preliminary offers.
05
Undertake negotiations
-
Evaluate the offers and negotiate the provisions.
-
Determine earnout clauses, officers' roles following the transaction, consideration provided (cash and/or stock), etc.
-
Decide on the due diligence process.
-
Receive and analyze final offers.
06
Close the transaction
-
Assist the company’s lawyers and accountants in the due diligence process and contract negotiations.
-
Review and comment on material transaction agreement clauses.
-
Expedite the closing process, including the transition of power.
02
Summary valuation and identify potential buyers
-
Do a preliminary assessment of the company's value based on comparable transactions, earnings, cash flow and assets.
-
Prepare a list of potential buyers by order of preference.
-
Zero in on advantages for potential buyers: market penetration, economies of scale, enhanced growth vs. internal development, elimination of competition, technology transfers, etc.
-
Identify potential buyers by diving deep into industry financial databases and reaching out to our international network of contacts.
01
Define the strategy
-
Understand the seller's goals.
-
Choose a sales strategy: one-to-one approach, formal call for offers, etc.
-
Set a timeline.