Middle Market Advisory

Middle Market Advisory

Sunbelt’s transaction professionals use a proven methodology to manage the process of selling their clients’ businesses. The following paragraphs provide a general outline of the process. Your Sunbelt service team can provide additional details and modify the process to best meet your specific circumstances.

Retain Sunbelt

Sell-a-Business-Photo-300x228Your Sunbelt service team will provide you with an agreement to clearly document the terms of your arrangement (Sometimes referred to as a letter of arrangement or engagement letter). This agreement will address a number of germaine issues including, but no limited to, fees, exclusive representation for a specific period of time, confidentiality and other relevant disclosure issues.

Financial performance and operations

As a first step in the sales process, we encourage all clients to critically evaluate their business operations, identity opportunities for short and long-term improvements as well as competitive challenges that will be of interest to prospective buyers.

Obtain independent valuation

We strongly recommend that clients obtain an independent valuation of the business being offered for sale. We will gladly recommend an experienced, qualified valuation firm for your consideration.

Drafting of offering memorandum

With the owner’s Assistances, we will prepare a compelling offering Memorandum. This is usually a 10-15 page document.

Developing a marketing plan

In conjunction with the preparation of the Offering Memorandum, ¬†we will work with you to formulate a marketing plan, including defining the marketing process and establishing timelines. The marketing plan will be customized to fit your company’s particular circumstances.

Identify and contact prospective buyers

Depending upon the nature, size and value of your business, the most likely pool of buyers could be competitors, private equity groups, foreign companies or local, in-market investors. Our international office network facilitates the identification of potential buyers throughout the world. Sunbelt has a proprietary process whereby your service team can complete a succinct, confidential generic profile sheet based upon the Offering Memorandum. This confidential profile sheet will then be distributed to hundreds of private equity groups that we work with to identify those groups that may be looking for investment opportunities in your company’s line of business. Prospective buyers who express interest will be required to sign a Non-Disclosure Agreement prior to receiving any identifying information about your business.

Facilitate buyer’s due diligence

A limited number of prospective buyers will be given the opportunity to visit your facilities and conduct on-site due diligence. This process typically entails meeting with the owner, reviewing selected financial information and discretely gathering other relevant information.

Assist clients and clients’ professional advisors with evaluation of offers

The goal for any transaction should be to maximize the seller’s after-tax sales proceeds. Accordingly, we encourage clients to involve their attorneys and CPAs in the process as soon as is reasonably possible so that tax planning strategies and other important transaction structuring issues can be thoroughly considered and addressed as we proceed into negotiations with prospective buyers.

Assist client’s professional advisors with document preparation

The seller’s and buyer’s attorneys will be responsible for the drafting of the sales agreement and related documents. Our service team will assist with your review and document compilation process.

Facilitate timely closing and assist with post closing issues

Sunbelt will work with the seller and buyer transaction teams (management, attorneys, CPAs) to resolve any open issues and consummate the transaction in a timely fashion.

For a confidential, no obligation discussion, contact us to obtain more information.