If selling your business is an option that you wish to explore and possibly move forward with, we highly recommend that you follow a structured process involving preparation and market execution. Further, expect timelines of six to eighteen months to complete the process depending on the nature of your business and ‘sale readiness.’
SB Partners’ Valuation Division utilizes a carefully defined process involving the following four steps:
- valuation and pricing
- due diligence diagnostics
- tax structuring
- market approach analysis.
Appropriate completion of this phase allows you to either proceed to the next phase of the sales process with confidence or to remedy any identified deficiencies or matters that are seen as negative factors to potential buyers.
The second phase of the sales process includes an additional four steps involving market execution as follows:
- written presentation by the company (confidential information memorandum)
- market contact for buyers
- obtaining letters of intent from buyers
- completion of buyer due diligence and legal agreements
Experience has shown that the market execution phase is significantly enhanced with a higher degree of success provided the components of the preparation phase are properly executed.