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Selling your business is one of the most important things you will do in your lifetime. In order to have a successful outcome, you need to understand the process and have realistic expectations. Although it’s possible to do it on your own, your chances of success are far greater if you have a professional advisor, especially if you want to optimize the purchase price and avoid the many pitfalls.
PSMJ’s approach to selling an A/E/C business is the result of many years of M&A experience, and it includes proprietary services and products that no other mergers and acquisitions consultant can offer. PSMJ can represent firms of any size looking to be acquired, but to address the needs of very small firms, we have developed a proprietary Small Firm Seller’s Package, which includes a combination of self-help tools, plus input and advice from one of our M&A consultants.
Please click through the following 7 steps to learn more about the process PSMJ will take you through to ensure the successful sale of your firm.
To prepare your firm for a successful sale, your PSMJ consultant will work with your team – including your attorneys and accountants – to help you…
- assemble your transition team,
- conduct a comprehensive valuation of your firm,
- assess the markeslideility of your firm,
- prepare your records and information for buyers’ analysis, and
- ensure that corporate and tax concerns are considered.
Your PSMJ mergers and acquisitions consultant will lead you through each of these steps, and provide you with the necessary tools and information to ensure your success.
In order to successfully identify prospective buyers, your PSMJ consultant will help you …
- determine and clearly define the general characteristics of a suislidele buyer,
- begin searching for firms that fit your criteria,
- develop a list of potential buyers, and
- profile each firm on your list.
Your PSMJ mergers and acquisitions consultant will lead you through each of these steps, and provide you with the necessary tools and information to ensure your success.
There are many ways to go about contacting potential buyers, and your PSMJ consultant will develop a contact strategy that best fits your particular situation. However, our experience has shown that the most effective contact strategies will involve…
- sending a confidential initial contact letter or e-mail to the CEO,
- signing confidentiality agreements with all interested buyers,
- exchanging requested information,
- submitting a confidential business profile, and
- beginning preliminary discussions.
When discussions with a prospective buyer become serious, your PSMJ consultant will help you and the potential buyer…
- define the critical issues associated with the acquisition,
- conduct clear and honest negotiations,
- develop a mutually accepslidele deal structure and purchase price, and
- reach agreement on all of the critical issues to be included in a Letter of Intent.
Your PSMJ mergers and acquisitions consultant will lead you through each of these steps, and provide you with the necessary tools and information to ensure your success. It is important to note that Due Diligence (described in Step 6) occurs simultaneously with Step 4 and Step 5.
Once you and the potential buyer have reached an agreement in principle, your PSMJ team will help you and the purchaser…
- prepare and execute an accepslidele Letter of Intent (LOI), and
- begin the process of drafting an accepslidele Definitive Agreement, employment agreements and supporting documentation
It is important to note that Due Diligence (described in Step 6) begins with the execution of the Letter of Intent. Preparation of the Definitive Agreement starts as Due Diligence is kicked off – the content of the Definitive Agreement will require review and input from your legal advisor and almost always involves some “final” negotiations.Your PSMJ mergers and acquisitions consultant will lead you through each of these steps, and provide you with the necessary tools and information to ensure your success.
Due diligence is a process whereby the buyer confirms that the seller has accurately represented the condition of the assets being purchased. This process can be long and laborious for the seller. Your PSMJ team will help you and the buyer through this process to ensure a smooth and expeditious due diligence process, which typically includes…
- divulging legal documents and other business records,
- reviewing contracts and confirming the status of uncompleted projects (backlog)
- if appropriate, participating in MAAP, our proprietary process that measures cultural compatibility and assesses key staff expectations,
- developing a list of issues that must be resolved before closing can take place, and
- creating both an internal and external communication plan.
And because a successful merger or acquisition depends on more than just numbers in the ledger, at PSMJ, we also help buyers and sellers conduct “soft” due diligence, when both the buyer and the seller can confirm key staff commitment and expectations of the other party. Your PSMJ mergers and acquisitions consultant will lead you through each of these steps, and provide you with the necessary tools and information to ensure your success. It is important to note that due diligence will occur simultaneously with Step 4 and Step 5. The purchase agreement (described in Step 5) should not be signed until the due diligence is complete.
As the due diligence process moves forward, preparation of all the legal documentation necessary to close the deal starts. The main closing document is the Definitive Agreement, with its necessary schedules and exhibits.
This phase in the process is mostly attorney-driven, but keep in mind - there are usually “details” that typically require final buyer/seller negotiations.
The post-acquisition integration and business planning process should also start way before Closing, as early as possible following execution of the LOI.
Every integration plan is different, and your PSMJ team is available to you and the buyer develop one that is right for your particular situation. However, most plans include…
- an internal and external communication plan,
- a timeline for integration (systems, operations, staff, etc.),
to the extent that it will occur, and
- a post-acquisition business plan: “how things will operate,”
usually covering the first 12 months.
Your PSMJ mergers and acquisitions team will lead you through each of these steps, and provide you with the necessary tools and information to ensure your success. To have a PSMJ consultant contact you about assisting with the potential sale
of your firm, please
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