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WHAT
IS INVOLVED IN THE SALE PROCESS?
HOW LONG WILL
IT TAKE TO SELL MY BUSINESS?
ARE THERE BUYERS
IN THE MARKET NOW?
WHEN IS THE
BEST TIME TO SELL MY BUSINESS?
WHY SHOULD I
USE ULTIMATE RESOURCE TO REPRESENT MY COMPANY?
WHEN DO I NEED
A PROFESSIONAL VALUATION OF MY COMPANY?
WHAT
IS INVOLVED IN THE SALE PROCESS?
Whether a company sells
directly or through an advisor, the sale process involves several steps.
The starting point is the collection of financial and other company information
on the business being sold. Buyers are then contacted, qualified as having
the funds available to complete an acquisition, and Confidentiality Agreements
are exchanged. The initial information on the selling company is then
shared. Once a buyer (or several buyers) has a genuine interest in the
selling company, a site visit is arranged. If the buyer chooses to proceed,
an offer is proffered, usually
in the form of a Letter of Intent. Only after the terms of the Letter
of Intent are negotiated and agreed upon, should the seller and buyer
take the final and most crucial steps, due diligence and the finalizing
of the Sale Agreement.
HOW
LONG WILL IT TAKE TO SELL MY BUSINESS?
The
entire sale process can take as little as two months, but often extends
over a longer period of time. A major determining factor is the demand
in the marketplace, that is, the availability of qualified buyers and
correspondingly, how well your company "fits" the needs of the
buyer. Also important is the amount of time you, the owner, dedicate to
the process. Keep financial information up to date and readily available
for potential buyers. Surround yourself with a team of experts, an advisor,
attorney and accountant, that can take you smoothly through the process.
Be available for questions and site visits.
Once a buyer is found and the terms of the acquisition are agreed upon,
a closing will normally occur in 30 to 60 days. During this period, due
diligence is completed and the legal documents are finalized. Documentation
turn-around time should be swift to assure your deal stays on track and
closes as quickly as possible.
ARE
THERE BUYERS IN THE MARKET NOW?
Yes, there are numerous
buyers looking for the right opportunities. Some of these buyers are established
national companies. Others are regionally based, and are looking to supplement
their internal growth. Occasionally there are individual investors or
companies in related areas of healthcare that are looking for opportunities
for growth and diversification. The goal is to match the seller with the
right buyer, so that both parties benefit from the transaction. Generating
this match requires identification of the seller's and buyer's objectives,
and a specialized knowledge of how buyers value and finance these transactions.
WHEN
IS THE BEST TIME TO SELL MY BUSINESS?
The best time to sell
your business is when revenue and profitability are on an upward trend.
This is because buyers value companies based on future cash flows. Being
able to demonstrate a reliable revenue growth rate and enhanced bottom
line is essential to commanding the attention of multiple buyers and maximizing
your sale price. Waiting until profitability has stopped or revenue is
on a downward trend not only makes selling your company more difficult,
it generally results in more cautious pricing strategies from buyers.
WHY
SHOULD I USE ULTIMATE RESOURCE TO REPRESENT MY COMPANY?
You are a specialist
in your field. You deserve the same expertise in mergers and acquisitions
when undertaking one of the most important transactions in your career.
Ultimate Resource knows the process for closing a successful transaction.
With a team of industry professionals who understand your business, Ultimate
Resource can showcase its unique qualities to attract the strategic buyer
for whom your business will generate the greatest opportunity and… the
best price for you. Ultimate Resource does the leg-work and the follow-up,
allowing you to focus on running your business. Most importantly, the
entire process is kept confidential.
Engaging Ultimate Resource as an advisor assures your sale process proceeds
smoothly. Buyer contacts, financial expertise and negotiating skills on
your behalf are valuable assets that yield the best price for your company.
WHEN
DO I NEED A PROFESSIONAL VALUATION OF MY COMPANY?
A formal company valuation
is critical in any instance when a significant amount of money is involved.
Certainly, buying and selling a business are the most common reasons for
having a company valuation. However, other reasons include legal requirements
such as estate taxes and divorce settlements, reorganizations, verification
of your worth for lenders or investors and evaluations for life insurance
needs.
In all of these cases, using "gut feel" or "rule of thumb"
approaches to valuing your company can be an expensive proposition. The
appraisal process is complex, with valuation methods varying depending
on the reason for the valuation. Every company has its own set of facts
and circumstances, and each valuation is unique. The goal in every case,
however, is to assist the owner in making informed financial business
decisions.
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