Telephone assessment
- Discuss the business in general terms including needs and goals.
Meet at the business -
Gain an understanding of the operation, review financial statements,
tax returns and other information.
Discuss Seller’s goals -
More than just financial. Do you desire to stay on for a period of time?
Do you desire more from the sale of the business than it is worth? We
suggest possible courses of action. For example, we obtained an additional
$3 million for a client by suggesting delaying the business sale for
one year while we worked closely with him and made recommendations for
his company during that year.
Advise Seller on pricing -
Determine a realistic price for the business that incorporates intangibles,
thus reducing the danger that every Seller fears – under pricing
their business. Selby Associates helps the Seller understand that the
selling price is dictated by the marketplace -- not by an accountant
or friend who may have an unrealistic idea of what the business is worth.
Selby Associates Listing agreement
- Determine fees, as well as, the work to be performed.
Prepare Seller Memorandum -
Provide Seller with a checklist of information that is required to create
the Seller Memorandum. Meet with Seller to interview and learn further
details about the operation and it’s potential, as well as, any
challenges. Present the business as effectively as possible. Seller
reads this information and approves the package upon completion, as
this is the information that is given to qualified Buyers.
Determine the correct Buyer for Seller’s
business - Locate and “blindly”
solicit prospective Buyers using our existing proprietary Buyer database,
as well as, advertise the business through various channels without
disclosing details such as business name, address, etc. We target the
correct Buyer because we profiled the business in detail with our Seller
Memorandum.
Non-disclosure/Confidentiality/Financial disclosure
agreement (NDA) - We ask every prospective
Buyer to sign an NDA for confidentiality and to disclose Buyer’s
financial information and industry experience for qualification purposes.
Confidentiality is very important especially with employees. We do not
disclose any detailed information regarding the business without a signed
NDA and the Seller’s permission.
Buyer’s name is disclosed to the Seller
- Once a Buyer is determined to be qualified, we
request that the interested Buyer be “approved” as a Source.
This is done so that we do not disclose to an employee or competitor
or vendor or any individual to whom the Seller may not want to disclose
information about the business.
Seller Memorandum is disclosed to the Buyer
- Upon Seller’s approval as a Source.
Address Buyers questions and concerns -
We follow up with each prospective Buyer. Because we take the time to
understand the Seller’s business prior to putting it on the market
and accept clients in industries that Mr. Selby has experience, we are
capable of discussing the business with prospective Buyers allowing
the Seller to focus on the business to maintain sales and profits while
the business is for sale.
Tour the business -
Arrange and accompany the Buyer on a tour of the business and meeting
with the Seller. Tours can be arranged during off hours if needed.
Letter of Intent(s) (LOI) -
We assist in structuring an LOI and present the offer(s) to Seller.
Our LOI is highly detailed and contains all the issues that address
the Seller’s goals based on the initial interviews and ongoing
relationship we have developed. Buyers, as well as, CPA’s and
attorneys with whom we have worked, have stated that Selby Associates
LOI is the most comprehensive that they have ever seen. The benefits
of Selby Associates LOI: (1) Since the time to negotiate the best offer
is when the business is still on the market, we negotiate and detail
ALL the terms and conditions prior to taking the business off the market.
Industry standard is to leave the "details" to the attorneys
after the business has been off the market for a month or more. This
industry standard may contribute to why the average business broker
only closes 23% of their deals and Selby Associates closes 100%. (2)
We generally have multiple Buyers interested in submitting an LOI. By
addressing all of the details at this stage, Selby Associates LOI assists
the Seller in selecting the most appropriate Buyer and the best offer.
It is important to choose the Buyer who will actually follow through
with the purchase before turning away all other Buyers.
Negotiation - Selby
Associates determines the strengths and weaknesses enabling us to assist
in posturing you favorably. Our years of experience make us vital during
the stages of negotiation; bringing to "the table" objectivity
as well as negotiation skills developed through years of experience
buying and selling businesses. This obtains the best offer for the Seller
and the most appropriate Buyer for the business.
Due Diligence phase -
We assist the Seller, the Buyer, their accountants, attorneys and advisors
during due diligence. Due diligence tends to be much easier than industry
standard because of the detailed Selby Associates Seller Memorandum.
Assist Buyer with financing –
Once Buyer signs off on Due Diligence, we can assist with financing.
Attorneys draft agreements
- This process generally is less costly and easier because of Selby
Associates LOI which already detailed the terms and conditions.
Closing occurs - Seller
realizes their goal(s).
