|Sale of Business/ Valuations
As a business owner, selling your company is one of the most important decisions you will ever make. Your choices will affect your company's growth, strength, employees, competitors and future as well as your own standing. Due to these far-reaching consequences, you will first want to think carefully about the many issues involved with selling a business.
Why consider the sale of your company?
While the most obvious reason to consider a partial or complete sale of your business may be to gain liquidity, other objectives may include to:
- Plan for managerial succession
- Gain access to the acquiring company's technology
- Plan for your retirement or create a plan for your estate
Relevant questions when selling your business:
- What result do your want? A lump sum of cash? An income stream? Both?
- To whom do you want to sell to raise capital? An independent buyer? Employees or key managers?
- How do you want to structure the sale? All of your business? Some of your business? Stock, assets or both?
- How quickly do you want to complete the sale? Do you want to retain some interest for a period of time? Do you want to sever all ties as quickly as possible?
The Sale Process
While each sale process is unique, the following table identifies the key steps typically involved in selling a business:
|Conduct analysis and due diligence
|| Draft offering memorandum
|Develop a marketing strategy
||Draft a list of potential buyers. Contact potential buyers
|Receive expressions of interest; evaluate proposals
||Select qualified buyer(s)
|Invite qualified buyer(s) to conduct detailed due diligence
|Negotiate the transaction
||Definitive agreement and closing
Get the guidance you need
Selling your business can be a complex undertaking. You will want to build a team of trusted and experienced tax, legal and investment advisors. ARGUS can bring broad experience and expert, objective guidance to the sale process and tailor a strategy to meet your company's unique needs.