The IBA Complete Guide: Getting the Best Value from Your Business Sale

Transcription

1 The IBA Complete Guide:

2 Table of Contents Phase One - 3 Certified Valuation Report Marketing Report Profile Phase Two - 4 Worldwide Web Posting and Linking to Appropriate Sites General Advertising Target Advertising Target Search Phase Three - 5 Buyer Screening Buyer Management Buyer Commitment Phase Four - 6 Due Diligence Phase Five - 6 Definitive Purchase Agreement Phase Six - 6 Closing Conclusion - 7

3 We Wrote the Book! Our entire team of trusted advisors put this guide together to help business owners who are thinking of or are in the process of exiting their businesses make informed decisions. Our qualified advisors have years of experience with selling businesses just like yours, and we know what it takes to successfully exit a business. We have been in the business of selling businesses for over 30 years. Our process is second to none and has been perfected to ensure that you, as a business owner, will receive the most money possible from the sale of your business. There are six phases involved when working with our team. These phases, when executed by our experts, have proven to generate the most profit from the sale of businesses across hundreds of different industries. Phase One Certified Valuation Report Conducted by an experienced, independent, appraisal firm under the USPAP standards. This Certified Valuation considers a wide range of economic factors and is industry specific of the client. In addition, the valuation staff researches other comparable transactions in order to meet the requirements of USPAP and establish a Fair Market Price for the business. Marketing Report Profile IBA, with the assistance of the client, will create a Professional Business Profile that presents the business in a clear, concise and easily understood format. Want to learn more about business valuations? Download the free, complete guide and learn everything you need to know about the process.

4 Phase Two Worldwide Web Posting and Linking to Appropriate Sites Our team will introduce the business on the web in a confidential, yet extremely effective manner. A matrix of up to thirteen selected proprietary and public sites are utilized to provide the optimum reach of potential buyers for a particular type of business or industry. Additionally, our advisors host our own award winning web site that will introduce the business to thousands of potential buyers. General Advertising A media strategy to expose your business to likely buyers will be created. Local, regional, and National resources will be employed. A sampling of resources routinely used include: The Indianapolis Star, Indianapolis Business Journal, Indiana Commercial Magazine, The Wall Street Journal, Entrepreneur and other appropriate outlets. Target Advertising Advertising the business in the appropriate trade journals and magazines. Target Search Our database management experts will generate a list of likely buyers from within the appropriate industry. With the approval of the client, Indiana Business Advisors will approach these targets, in a confidential manner, to measure their interest in a potential acquisition.

5 Phase Three Buyer Screening Most clients are interested in maintaining strict confidentiality during the business selling process. IBA requires that all interested buyers sign a Confidentiality Agreement prior to receiving the Business Profile or learning the name of the business. Potential buyers are screened for possible conflicts, financial capability and level of interest. It is our objective to disclose the details of the business only to those buyers who have met our pre-screening requirements. Buyer Management Buyer expectations and requirements vary widely. Our experience allows us to quickly identify the needs of the buyer and, where appropriate, adapt our process or, where necessary, re-educate the buyer. We provide as much information and guidance as necessary for each stage of the process. Buyers often overwhelm the seller with inappropriate requests for information or detail. Our advisors will control the process to minimize the burden to the seller. Buyer Commitment Once a serious buyer is provided with the necessary information to make a commitment we encourage the submission of a contingent offer. Usually this offer is in the form of a Letter of Intent or Offer to Purchase. We will work with the seller and their attorney and/ or accountant to evaluate the offer, structure and contingencies. We will make recommendations regarding possible modifications to the offer to maximize value. Once agreement on an offer is made, IBA facilitates a smooth due diligence and closing process.

6 Phase Four Due Diligence Proper management of the due diligence process is critical. This phase is particularly difficult because a buyer will now need to receive very sensitive information. IBA will coordinate this activity to minimize any potential disruption to the business. We will work with the buyer to establish a manageable step-by-step guide to completing due diligence in an efficient and timely manner. Phase Five Definitive Purchase Agreement Upon completion of Due Diligence the development of the Definitive Purchase Agreement (DPA) begins. This agreement is the final binding agreement for the transaction. Our advisors work with all attorneys representing the Seller and the Buyer to achieve an agreement that both parties believe to be fair and equitable. Phase Six Closing If Phase I through V are properly completed the closing is largely a ceremonial event. Both the buyer and seller have achieved their objectives and are ready to transfer the business ownership. Interested in learning more about our process? Call today and talk to an advisor in person:

7 Conclusion When you know what your business is worth, you have a more realistic perspective from which to plan the future direction of the business. This is especially true if you are planning to sell it in the next 12 to 24 months. We take the responsibility of helping you determine an appropriate value and asking price very seriously! During the past 19 years, our firm has been involved in valuing businesses ranging in size from the corner grocery store to multi-million dollar manufacturing companies. Our credentialed, experienced analyst is qualified to meet the standards of the Internal Revenue Service, Courts of law, and professional appraisal societies. Our appraisal division specializes in performing professional, confidential business valuation and equipment appraisals for privately-held businesses. Our valuation practice encompasses all types of tangible and intangible property. A business appraisal is critical for business decisions, and we can be a key member of your team. Our reports provide unbiased, independent appraisal advice and stakes our reputation on every valuation report. Clients, buyers, and sellers make important financial decisions based on valuations that can dramatically impact people s lives. If you are looking for an unbiased and objective valuation opinion, consider our valuation services. We have different levels of reporting to accommodate all appraisal needs. To find out more about how IBA can help you with business valuations, please call us at or contact us at info@indianabusinessadvisors.com.