Knowing when the time is right.
You’re ready to sell your business. But is the time right for a sale?
Much of selling a business involves knowing when internal and external conditions
are right. Internally, is your balance sheet strong? Are there any red flags that
might scare off a potential buyer? Externally, are there many buyers in the marketplace,
or would you be better off delaying your sale until conditions improve?
We pair our deep knowledge of the marketplace with a thorough understanding of your
business to provide you the correct answers. Here’s how the process works:
Step #1 – Meet with SVA.
In our meeting, we will complete the SVA Seller Questionnaire, which helps us truly
understand your objectives. We need to know everything about your business – from
your current assets to your long-term strategic goals.
Keep in mind that any information you provide us will remain strictly confidential.
This confidentiality is essential to the process; it allows our clients to provide
us with key financial information, which streamlines the matching process.
Step #2 – Setting a selling price and structuring payment
terms.
While many business owners have a general idea regarding their company’s value,
few understand how that value equates to the amount of cash they will take away
from the business sale. By determining a business owner’s necessary after-tax proceeds
from a sale, SVA can calculate the minimum business value required to meet those
goals, as well as structuring the payment terms of the sale.
Step #3 - Identify potential buyers.
Based on your information, we then refer to our listings of qualified buyers looking
to acquire a business. Once again, strict confidentiality is maintained throughout
the process.
Step #4 – Determine if the potential buyer is the right person.
Next, it’s time for a thorough analysis of the potential buyer – one that not only
assesses the financial statements and management experience of the buyer, but also
the buyer’s business plan and financial projections for the future.
Step #5 - Negotiations and structuring a deal.
If potential buyers need assistance in exploring financing options, our long-term
relationships with the area’s most reputable and reliable financial institutions
can help with this financing phase.
With a thorough understanding of the potential sale and financing in place, you’re
ready to negotiate.
There are many aspects to negotiating and structuring a sale – from the amount to
the terms of payment. Our expertise and experience allows us to understand the fundamentals
of a sale, and build creative solutions from that base.