Step by Step Process
Here’s the process in a nutshell.
You pay $0 until we sell your business:
Step 1
Valuation (within 12 hours)
We learn about your business, review financials, and let you know what the business is worth and what kind of offers you could expect in the market. Your financials and information are 100% confidential, we even sign a NDA to guarantee that.
Step 2
Broker Agreement
If we accept the business, we'll extend you our broker agreement, which outlines that we only get paid when you get paid, and the agreed asking price for when we go to market. We welcome your attorney to review this, we have worked hard to make this agreement seller-friendly.
Step 3
Marketing Package (5-14 days)
Our marketing team puts together our state-of-the-art package for buyers. We've spent years perfecting what needs to be in the ``offering memorandum,`` and making the design the best in the industry to make it stand out.
Step 4
Bank Financing
Simultaneously with the marketing package, part of our process of setting your business up for sale is that we organize SBA 7a financing for the buyer. We have a network of lenders for this, and it allows us to reach a much wider buyer pool.
Step 5
Deal on the Market (1-3 months)
We then take the deal to market. We use three different marketing approaches to find a buyer for your business.
1) We send it to our buyer database. Generally, 70% of our deals get sold to our existing database.
2) We send it out to our marketing channels. We have 13 different marketing channels we use to find people looking for companies to acquire just like yours.
3) We look for synergistic buyers: we create a target list and contact them directly.
Step 6
Accept an Offer
All interested parties submit an offer and you decide on the best buyer depending on price, terms, and their background. The winning buyer then gets an exclusive diligence period to verify what we have claimed about the business.
Step 7
Due Diligence (1-3 months)
The buyer will be given an exclusive period to go through tax returns, bank statements, and operations with you to verify that the business is as claimed.
Step 8
Contract Development
The buyer is responsible for drafting the purchase agreement. They will send a draft, and your attorney will review this to make sure you are protected. We have attorneys for you if you need one.
Step 9
Sign & Escrow (2-7 days)
The fun part 😊 we sign everything, and our third party escrow holds the buyers' cash until your business assets are transferred. Then escrow wires you your funds, and the deal is closed!
Step 10
Training & Transition (1-3 months)
After the deal closes, there is a transition period where you help the new owner learn about the business, introduce them to employees/vendors, etc. This is normally negotiated and agreed upon before the deal closes as to how long and how hands-on this process is.