CGK utilizes a proven process, with capabilities and service once reserved for large and publicly traded companies, to sell your company.
This time-tested process results in the client simultaneously receiving a range of offers for the company, giving CGK the ability to negotiate a combination of price and terms that is most suitable for the client.
A successful deal typically involved the following steps:
All transactions begin with an assessment of value. Why? Because it is critical for the independent business owner to know, before starting the sale process, whether his or her expectations and requirements are in line with the realities of the marketplace. But what if they don’t align?
Very often this valuation takes the form of informal range of values based on some basic financial information (typically EBITDA – Earnings Before Interest Taxes Depreciation and Amortization) and a discussion of your industry, your company’s unique selling points and other basic information about your business.
There are times, however, when a more formal, written valuation is required, which CGK can also provide. Performed by Certified Valuation Analysts, these formal valuations are prepared in accordance with the standards of the National Association of Certified Valuation Analysts. Such formal valuations are ideal for estate planning, buy/sell arrangements, and legal requirements.
If the valuation meets the owner’s expectations and there is a decisions to sell the company, the preparation of an in-depth offering memorandum begins.
We research and determine the most likely acquirers of your business. Using a targeted approach,w e prepare a lit of qualified, synergistic, and financial buyers to approach regarding a potential transaction. This list is assembled using extensive research and our network of contacts throughout the business and financial world. As the seller, you maintain strict “veto” power over the potential buyers list – nobody is approached that is not approved by you. Of course, in order to insure confidentiality throughout the sale process, all potential acquirers are required to sign a confidentiality agreement prior to receiving any information about your company.
Letters of Interest/Intent
After potential buyers have signed a confidentiality agreement and have had time to review the offering memorandum and preliminary due diligence information, we request an indication of interest from potential buyers. This document typically outlines the price and the terms of the proposed transaction. Since no two letters of interest are alike, we make sure that the seller is able to compare the proposals on an apples-to-apples basdis sot hat he or she can make the most informed choice possible before moving forward.
Gathering the information for attorneys and accountants to review, we guide the seller through the due diligence process. Using an electronic “virtual” data room to store the due diligence information with secure, remote access via the internet creates a smooth due diligence process and allows all parties involved in the transaction easy access to consider the acquisition. The use of this virtual data room results in less time being spent on this process and, ultimately, lower costs for both the seller and the buyer.
Working closely with the client’s attorneys in order to ensure that the legal documentation best reflects the seller’s interests, we keep the process moving and close the transaction.