How Does the Business Sale Work?
I want to work with Suhail, but how does it all work?
Suhail's approach to selling a business. It just works.
Stage 1 - Preparation
Understand
Suhail needs to understand your goals and your business. Understanding what deal structures may suit you and your business. We develop a partnership to lay a map to the road ahead. We need to uncover what makes your business unique and its position in the marketplace.
Financial Analysis
Suhail collects your financial documents to compose an initial valuation. Analysing your P&L, Balance Sheet, Management Accounts and KPIs will ensure all the necessary information is there to be able to form a financial view on the business.
Initial Valuation
The financial analysis of the business will enable an initial valuation to be formed. This is where the business stands today at first enquiry. This valuation can usually be improved with simple structural improvements to the business and preparatory work.
Documentation
A business is more than its financial information. We start collecting all of the documentation of the business. Although it may be early in the process, collating the business documentation now can save you time and money later down deal path. It is also necessary to ensure you do not get caught off guard during buyer enquiries or due diligence.
Dummy Due-Diligence
Due diligence is conducting on all business by potential acquirers and investors. Failures a company's ability to provide information during the due diligence almost always hurt the final price achieved by sellers or even worse an aborted sale. Running a dummy due diligence round on the most important elements of the business is a sound exercise which saves owners £'tens of £'thousands in fees and decreased monies received on completion.
Valuation
Your business is more than its financial documents. Once the prepatory work has been completed and all of the documents have been gathered, a full valuation can be completed on the business. We weigh in everything from competitive advange to team structures and financial performance in the valuation. At this point you can decide to proceed straight to a sale stage or work on increasing the value of your business via the "Sell Your Business Checklist" or the "Business Exit Accelerator".
Stage 2 - Presentation
Market Research
An industry is defined by the market it operates in. We work to identify where your business sits in that market. It gives us the opportunity to identify where the market is moving and how you can best benefit with a sale.
Data Room
A data room is built around all of a businesses key documentation. You may be surprised but this increases the value perception of your business in the eyes of the buyer. Would you work with someone who operates in a mess? If the answer is no, then your buyer is thinking the same.
Financial Forecasts
Realistic financial modelling is key to get the most from a business sale. Using data from the market research, your finance team and the preparation from the "Sell Your Business Checklist" your accountant produces a cashflow statement showing the future potential of your company. An accompanying commercial plan produces a strong case for potential "earn-outs". It projects a solid investment for a buyer and increased value for a seller.
Information Memorandum
There are two documents that are professionally produced for your business. A "teaser" document and a full "information memorandum". The teaser creates buyer interest by highlights some key information while keeping the details of your business confidential. Once buyers have been vetted and an NDA is signed they receive the information memorandum. It is a high quality document showcasing your business in the best light to invite offers for your business.
Stage 3 - Promotion
Research
Every sector has active buyers. Suhail and his assistants vigorously research the market to identify they key acquirers who have the appetite and resources for acquisitions. There are many companies that want to enter markets and can do so via acquisition. Many owners do not know but they can often be acquired by those they would not have considered.
Marketing & Approach
It's time to carry out a targeted and intensive marketing plan to create a stream of potential buyers. The research tasks carried out at this stage of the sale empowers Suhail to reach out to the senior executives of acquisitive businesses. Our extensive contacts of exisitng acquirers are also invited to consider your business.
Stage 4 - Preservation
Buyer Vetting
We vet every potential buyer to ensure they have the capabilities to successfully buy and operate your business. You can leave this part of the sale completely to us or you can be as involved as you want.
Non-Binding Offers
At this point offers are invited and viewings are conducted. Suhail automatically rejects unsuitable offers and only progresses sensible offers. Suhail works with you directly to ensure viewings are conducted in a way that only enhances the perception of your business.
Negotiate
Suhail can negotiate on your behalf if you require. Some owners want to get involved in the negotiations whilst other prefer Suhail, an experienced M&A negotiator, to handle this aspect of the sale. In any case, the objective is always the same, to get you the best offer for your business.
Acceptance
You've received an offer from a buyer you like, the next step is to accept the offer. The offer needs to be structured in a "Heads of Terms" document which is handled in house. Suhail works with you to ensure you have all the initial protections during the next stage to completion. Experience counts for everything at this stage and owners who choose to work with a professional typically have achieved a higher offer and more protections than owners who act independently.
Due Diligence
Paperwork, paperwork and more paperwork! Due diligence is conducted by the buyer's professional team. The documentation and data room stages earlier have saved you a lot of time and fees with your lawyer, but there will be new paperwork like the APA or SPA to navigate. It is normally the solicitors and accountants who take the lead here but your M&A advisor (Suhail) will keep pushing the deal in the direction of a completion.
Completion
The day has finally arrived. It is not uncommon for there to be last minute negotiations at the 11th hour. Any M&A professional is key at this point to get the deal to completion. Although professionals are there to do their job they can get side-tracked with legal jargon and small sums of money. You as an entrepreneur have got to this point trusting your business acumen and Suhail has experience doing deals. He is there to defend you and get you to a successful completion.
Time to celebrate and start living the next journey of your life.
Book a Call to Sell Your Business Today
Contact Us
suhail@suhailshaikhbusiness.com
07809621556