What to Know BEFORE You Sell
Frequently Asked Questions
- What’s my company worth?
- How do I attract the best valuation?
- What’s the best deal structure for me?
- What type of role do I want to play in the business post-close, if any?
- How do I ensure that I’m not “leaving any money on the table”?
- How do I make this process as efficient as possible so that I can continue to focus on my normal responsibilities?
- Experienced professionals who will be able to set valuation expectations
- Professional “story tellers” who will know how to best position your business
- Investment bankers will be able to identify the ideal/realistic deal structure for you
- Banking team will run a robust auction process to generate a premium valuation
- Investment bankers will act as the “bad cop” to your “good cop” to preserve your relationship with buyers
- The process will be far more efficient and considerably less distracting to ownership
- Highly trained professionals with tremendous experience closing deals (especially more challenging ones)
- Access to the “varsity squad” that is excited to work on your specific transaction
- Highly sophisticated marketing materials (e.g., investor presentation, financial model, data room, etc.) that will immediately establish credibility with the investor universe
- A comprehensive and robust auction process that will “leave no stone unturned” in the search for optimal valuation
- High level of attentiveness and accessibility (e.g., nights/weekends, etc.) with strong references from satisfied former clients
- Lack of preparation/organization before launching a process
- Financials not being in good condition/financial personnel not accessible
- Unrealistic valuation, structure and/or timing expectations
- Limited marketing process without proper representation (“DIY” attitude)
- Relying upon one offer (i.e., “all of your eggs in one basket”) without backup offers (“There is strength in numbers!”)
- Inexperienced transaction attorneys (i.e., using your personal attorney as a deal attorney)
- Your investment banking team should lead the charge over the finish line
- The valuation you actually receive should be in line with any preliminary valuation work provided by your banker
- The deal structure that you actually agree to should be in line with your banker’s preliminary advice
- You should have a cordial and professional relationship with the buyers because your investment banker played the “bad cop” (especially if you have an ongoing role under new ownership)
- You should feel that your banker’s fee was more than justified for their efforts