Deciding to sell your business is one of the biggest decisions in your professional life. It can feel daunting and overwhelming as you may second guess your timing. We completely understand.
We are asked regularly, is now a good time to sell?
The answer really depends on you and your situation. If you are ready to move onto your next thing, whether that be retirement or doing something completely different, you are the one who best knows the answer to the question. We can certainly provide insight into the market, the appeal of businesses like yours, financing trends, and transition planning expectations but at the end of the day, you are going to know in your gut if the time has come to exit. Rest assured, we will be with you from start to finish to guide, navigate, support, and advise.
We agree with the statement, “Knowledge is power” which is attributed to English Philosopher and Scientist Sir Francis Bacon.
As you consider selling your business, we want you to have the knowledge of what that journey will look like.
Our Business Brokerage journey is summarized in the following 5 Steps:
Step 1. Getting to Know You
Step 2. Going to Market
Step 3. Negotiations
Step 4. Due Diligence, Financing, and Legal
Step 5. Closing
In this blog we will focus on the first step, as this is the big step of deciding it is time to <fill in the blank of what your goal is> and we will be the champion of your achieving this goal starting with Step 1.
Goals
The goals of Step 1 Getting to Know You is for us as business brokers to learn more about you, your business, your motivations, expectations, and timeline. This is an exciting step and honestly, an easy one for you as the business owner and seller as there is little to no heavy lifting during this Step. You tell your story, and we listen intently. We get to know each other through one or several in-depth meetings including taking a tour of your business and maybe having coffee or an ice cream.
Keys to the Game
Using a sports analogy, analysts will often talk about the “Keys to the Game”. What aspect of the game is going to be important for each team? Our Keys to Step 1 are confidentiality and professionalism. At this initial step, you are getting to know us and evaluating if you want to commit to us being your champion to successfully sell your business and enable you to reach your goals. We are also assessing your readiness to sell and will be honest and direct with you as to your readiness. You can be assured that all of our conversations and meetings are conducted with the highest level of professionalism, and everything is confidential.
This is a Team Sport
Step 1 in our Business Brokerage process includes putting the team together. The team is comprised of a business transaction attorney, your CPA and financial advisor, and perhaps other trusted advisors you work with. One of our business brokers will meet the team and often introduce professionals from our extensive network should you need expertise added to the team to ensure the team is complete and experienced.
At this point, you have had the opportunity for multiple interactions with us; to get a sense of the journey we will embark on together and to get a sense of our local market knowledge, and network to leverage where necessary. We then make a decision as to if we are mutually committed to working together. If yes, it’s go time. If no, no problem. We have each likely learned a lot, made a new friend and remain in touch as one never knows how our paths may cross in the future.
The Outcomes of Step 1
With a greenlight to work together, we get the necessary documents in place. Your business broker will drive the process, guiding and navigating while keeping you calm and informed. You will have a front seat view of where we are going and what is next and whenever you have a concern or a question, your business broker will be readily available to provide an answer.
The deliverables from Step 1 include documenting our agreement to work together in the form of an Engagement Agreement. A Non-Disclosure Agreement (NDA) will be established that any interested party will sign before any information about your business is released. The team will be confirmed, and the Broker Opinion of Value will be completed so that by the conclusion of Step 1 a go to market price of your business has been developed.
Conclusion
With knowledge being power, we sincerely hope that reading details of Step 1 helps you think about your decision as you evaluate who you want as your business broker.
Our brokers have all been in your shoes. We have each owned a business and gone through this process and with that experience, we offer support, understanding, and expertise. With a final sports analogy, think of us as your biggest cheerleader and the quarterback of the process, leading the team, calling the plays while communicating with you to protect your interests and your time, and achieve the goals that you shared with us in our first meeting during Step 1.
We welcome the opportunity to learn more about your goals, your business, and how we may be the right fit to help. Stay tuned for more information as we explain the details of Steps 2 through 5 in future blogs.