The Process of Selling Your Business
The professionals of Horizon Business Group have owned and managed our own businesses. We have experienced first hand the responsibilities of running a business. We have sat in your position. Most have started their own companies, raised venture capital, bought businesses, sold businesses, restructured and divested companies and divisions. We have been both buyers and sellers. Because of this, we identify closely with both buyers and sellers, bringing experience, extensive training and insight into the complex equation of ownership transfers.
Initial Meeting – To accurately market a business for sale, many details and facts must be ascertained. An initial meeting with you, the Seller, allows for an exchange of information to determine your objective in the sale. This discussion will include the financial objective, time constraints and requirements, and a detailed outline of the marketing process.
Business Evaluation – Most business owners are good business operators but may be unknowledgeable as to the probable market value of their entity. Based on information gathered, including current financial information, we will prepare an estimate of your business value using several valuation methods and techniques to arrive at a marketing price, including reference to databases of completed transactions. A discussion as to the proposed structure of the transaction will also help you understand the possible net proceeds to be realized from the sale.
Listing Agreement – To allow us to have legal authority to market your business, written authority must be received from you, the Business Owner, in the form of a signed listing or engagement agreement. This agreement will clearly define our respective responsibilities and the success fees to be paid upon the conclusion of the transaction.
Marketing Materials – We will then prepare an in-depth marketing brochure to be used with potential buyers. The information is reviewed by you prior to release to buyer prospects. The material covers key subjects of the business from operational matters, revenue sources, categories of major expenditures, employees, marketing/advertising, trade areas, and financial review and analysis. This in-depth brochure will only be released to buyers after the prospective buyer has executed a confidentiality agreement.
Confidential Marketing Plan – Whether drawing upon potential buyers from the pool of preregistered buyers or marketing a business to other industry sources, confidentiality is of primary concern. HBG’s strong ties to other brokerage and merger/acquisition professionals will allow your business to receive nationwide attention but yet in only in a non-specific manner so that the normal course of business operations is not disrupted. The quiet, marketing efforts of the HBG professionals allows you to continue normal business operations without being distracted by the marketing program.
Our primary source of advertising is through other broker-related web-sites and associations. We advertise aggressively over the internet, which gives your business exposure to thousands of internet users. We may send mailings to a targeted group of buyers, which complements our regular phone and personal contact with our group of listed buyers. Lastly, we may run “blind” advertisements, which do not include any specific information about your company but will attract those interested in your type of business.
Negotiation and Closing – The experience of many successfully completed transactions translates into additional dollars of net profit for the clients of HBG. Your team of proven professionals, which include your CPA, attorney and financial advisors, are encouraged to be a part of the process. Alternative methods and terms of structuring the transaction can benefit you by minimizing your tax burden. Experience indicates that the terms and structure are equally as important as the selling price. The conductor of the orchestra can best illustrate the position of the HBG professionals as they call upon the appropriate party at the correct time as each party of the transaction contributes to the harmony of a closed deal.