Selling a Business | Why 2Transition for M & A ?
We see ourselves as the quarterback and key partner throughout the process when you consider the sale of your business. We provide a number of services that help to ensure your business is presented in the most professional way, that buyers are qualified, confidentiality is maintained and the needs of various stakeholders are met (like attorneys, accountants, financing institutions and financial advisors).
The following are some of the services we provide:
Preparation
We work closely with business owners in helping them both with the preparation to sell as well as helping them determine the proper timing. As exit strategy advisors, we will often tell owners that they will achieve their best financial results by waiting and implementing one or more of our recommendations.We bring the ability to view your business through the eye of a buyer or a financial institution and frequently can offer specific guidance in ways to have your business appear in the best possible light.
Marketing
We are experts in developing a comprehensive Offering Memorandum, or "Book" that gives prospective buyers a detailed and accurate understanding of your business. As part of this process, we work with you to highlight the unique selling propositions that differentiate your business from others.
These propositions can run the gamut of attributes including financial performance, competitive advantage, growth potential, intellectual property, processes, customer base, and any other characteristics that separate you from your competition. From this, we develop a brief Blind Profile, with sufficient information for a buyer to determine interest, but insufficient to identify your business.
Through our nationwide network of affiliations, we propagate this profile so as to insure exposure to the maximum number of potential purchasers. In addition to placing the profile on our own site, we participate in nearly a dozen multiple listing services for businesses which collectively receive hundreds of thousands of visits per month. We actively co-broker with hundreds of intermediaries throughout North America, and over fifty percent of our buyers are from out of town. Additionally, we receive dozens of inquiries every week from individuals, companies, and buying consortia that are actively seeking businesses.
As buyers contact us about your business, we verify their credentials and financial qualifications. If they pass muster, we have them execute a Warranty and Non-Disclosure Agreement specific to your business before identifying your business and allowing them to view the Offering Memorandum or other material.
Creating competition among buyers should be an intermediary's goal, not just finding a single buyer. A buyer without competition feels he can offer less than the full value of a business. When a buyer knows several other buyers are looking at the same business, they are hesitant to offer less than the price and terms being offered.
Getting the Deal Done
Often, the hard work begins when a buyer is ready to purchase your business. Just as most business owners have limited experience in the process of selling a business, buyers are frequently in the dark with respect to the myriad of issues surrounding a purchase.
We can offer buyers boilerplate Letters of Intent or Purchase Offers both as a sales tool and a way to move the process forward. We facilitate negotiations between buyer and seller and will help the parties get past any sticking points that may arise. We often suggest creative deal structures that allow a transaction to proceed that would otherwise unwind.
Once an offer is accepted. We assist and facilitate in all areas of the pre-closing process. This may include recommendation of counsel or financial advisors, due diligence support, resolution of the many issues that can surface, and finding and working with lenders. We have been known to be at a seller's business the night before the closing helping to complete a final inventory. We have even advanced expenses out of our own pocket on occasion.
In short, 2Transition has a commitment to do what it takes to help business owners achieve a successful transition.