Our Business Brokerage and M&A Process
Our 8-Step Process
1. Discovery and education
The first step is to schedule an initial interview with us where you will learn what it takes to sell your business. We discuss the timeframes involved and the work you will need to do to sell your business. We will thoroughly discuss your business and how it operates so we can learn if it is a good prospect for a sale. Not all businesses can be sold. Some of the questions we discuss:
Your reasons for selling
Post-sale plans
How the business will be valued
How long will it take to sell the business
How could you increase the value of the business
Your reasons for selling
Post-sale plans
How the business will be valued
How long will it take to sell the business
How could you increase the value of the business
3. Valuation Consultation
Once the report is out, we will schedule a meeting to go over our findings and the Most Likely Selling Price we predicted. During that conversation, we will answer any questions about how and why we came to the value conclusion. You will have a chance to explore what we think are the value drivers for your business and any areas that we feel should be improved before going to market.
5. Create a marketing plan and marketing materials
We develop customized plans that respect your unique business and personal goals. High-quality buyers demand high-quality marketing materials that tell the story of your company, and the opportunity to acquire it. We create a marketing package that showcases the unique selling points of your business. We also create a confidential “blind” teaser to entice potential buyers to request more information about your business.
Confidentiality is important when pursuing the sale of your business. We do our best to maintain the anonymity of your listing until a potential buyer has signed a nondisclosure agreement. We advertise you business without giving details that would allow a buyer to discover that it is your business for sale.
Confidentiality is important when pursuing the sale of your business. We do our best to maintain the anonymity of your listing until a potential buyer has signed a nondisclosure agreement. We advertise you business without giving details that would allow a buyer to discover that it is your business for sale.
7. Negotiation
Diversified Business Advisors will facilitate all aspects of the buyer negotiations. We are not afraid to advise against a transaction that is not in our client’s best interest and will tirelessly pursue and execute those that are. We want to minimize any disruption of your routine business operations. Our methodology results in successful transactions.
2. Information gathering and Valuation
If we believe the business sale prospects are positive and you want to proceed, you’ll need to share enough information for us to value your business accurately. In order to accurately value your business, we need the following:
3 years of tax returns (entire business return)
3 years of P&L and balance sheets in Excel format (preferably by month)
A Year to date P&L
A list of add-backs (we will discuss this first)
Completed valuation questionnaire
A follow-up interview
This will help us understand your company better and assess its marketability.
3 years of tax returns (entire business return)
3 years of P&L and balance sheets in Excel format (preferably by month)
A Year to date P&L
A list of add-backs (we will discuss this first)
Completed valuation questionnaire
A follow-up interview
This will help us understand your company better and assess its marketability.
4. Decision and Listing Agreement
In this phase, you’ll look over the information and our listing agreement and fees. We do not charge anything up front, we only get paid when the business is sold. We ask for a 12-month commitment to give us ample time to market and sell the business. Our goal is not to convince you to sell your business, but to support you in the process of making the decision.
6. Communication Plan
We keep in close contact with you regarding any potential buyers interested in your business. We will take our cue from you about the format and frequency of our updates. We also keep you updated on your transaction status through our client portal.
We conduct the initial interviews with buyers. When we advance with a buyer to the point where a meeting with you is warranted, we will schedule the meeting and set the agenda. Any tours of the business are scheduled only with your approval and at your convenience.
We conduct the initial interviews with buyers. When we advance with a buyer to the point where a meeting with you is warranted, we will schedule the meeting and set the agenda. Any tours of the business are scheduled only with your approval and at your convenience.
8. Closing
We act as the interface between you and your attorney, account, or other advisor and the buyers advisors. Our virtual data room will be used as a repository for all necessary documents during the due diligence phase. We will gather all requests for documents received from the buyers representatives and assist you in organizing and transmitting them to the appropriate party. We will monitor the due diligence and closing process to ensure all details are addressed.
After the closing, we follow-up with you, the buyer, and the closing attorney to make sure the transaction is properly concluded and the transition happens in a timely manner.
After the closing, we follow-up with you, the buyer, and the closing attorney to make sure the transaction is properly concluded and the transition happens in a timely manner.