FAQs

Yes. We completely understand the necessity for confidentiality. If employees, competitors, customers, vendors, etc. learn of a potential sell or transition it can cause a firestorm of problems for you, all of this could effect your current performance as well as future sell price potential. Therefore, every conversation that we have is private and confidential.

No. We actually believe that we need to begin the conversation 2-3 years prior to your expected time of transition. Because of our experience in the acquisition and brokerage industry, we understand what buyers and bankers tend to look for when they are buying and lending. This knowledge helps us advise you regarding adjustment you might need to make prior to putting your business on the market.

We developed a proprietary analysis process that we use to gage your current preparedness for a transition. One of those tools we call the Sell Probability Scorebook. We have nearly 50 data points that we analyze. If some of them need improving a 24-36 month year timeframe can allow you begin to make adjustments so that your business is sold for maximum value. We find that many of the necessary improvements can be made in a 12-24 month time frame, but we believe an initial visit is useful up to 36 months prior to exiting. We can help you develop a strategy for laying the foundation of your exit strategy.

It depends on several factors, but the average time is usually 12-18 months. We’ve sold companies as quickly as 3 weeks, but typically it takes closer to a year to complete. The time frame is largely based on the preparedness of the company for sell. We find that when a company has spent a year or two preparing for sell the time frame that a company is on the market decreases dramatically and the sell price increases. Of course there are a number of global and national influences that contribute to the time frame necessary to take to complete a transition as well.

Not likely, most buyers will like for sellers to have some skin in the game, this provides the buyer with the confidence that the seller is selling them a sustainable business, built to succeed in the long haul. Many sellers don’t like the sound of that they think it’s risky to carry a percentage of the sell price, but when a significant down payment is made, usually 75%-95%, the risk might be worth it. Other sellers are aware there are tax consequences of selling their company and gaining a huge one-time payment could cost them large percentages of the sell price. Therefore, they actually prefer to be paid out over time. There is also an upside benefit for a seller carrying a percentage of the sell because typically the seller will earn interest on the amount of the note. There are also several lending facilities that actually require that the seller stay somewhat connected by requiring a small portion of the purchase price to be carried by the seller. Many of these facilities help the seller to receive a larger purchase price.

It depends. Typically we do charge for our Estimation of Value and Sell Probability Score report. With this report you will have an understanding of the market value of your company. You will also understand the strengths and weakness that a buyer and potential lender might see in your business.

Within this evaluation report we deliver a Sell Probability Score and highlight the areas of strength and those that need improvement. We then present you with an opportunity to utilize our consulting services to improve that Sell Probability Score.

If you chose to utilize our consulting services then we require a small monthly retainer, that is customized to meet your needs. We believe that you will see this retainer as a small investment that will pay huge dividends in increased sell price once your business is sold. When you become one of our consulting clients we recognize your commitment to our process and there are no other fees until closing.

If after receiving the Estimation of Value report you are ready to sell your business typically there are no other fees until we successfully transition your business.

No, unless you partnered with us to utilize our consulting services. There is a fee for our Estimation of Value and Sell Probability Score report which you can read more about in the “Is there a fee for your consulting services” question. If your business ranks high enough in our Sell Probability Scorebook then we can take your business to market without the need for our consulting services.

No. If you become our client for sell preparation, our engagement agreement is only for our consulting services. If you want us to help you find, verify, and negotiate with buyers we will have a completely different engagement agreement.