Is your business valuable? Whether you want to transfer it to family, employees, or an outside investor, it’s crucial to know what your business is worth, and the the next steps needed to build the value and market it to potential buyers.
You work hard to build your company, and we’ll work hard to help you receive the fair market value for it. We’ll listen to your exit goals, determine fair market value, and summarize next steps to build your business value. Stay focused on your business, while we deal with all the distractions of finding buyers with financing, assisting with negotiations, and tracking all the documents.
Since 1987, Proforma Partners has helped hundreds of business owners achieve a profitable and rewarding exit. We scale our services to the size and complexity of your business, including our fees. Contact us to learn more about the process!
Level 1: We use a variety of methodologies to determine your business’ value, and conduct a nationwide comparison to similar businesses sold in the same industry. The 6-12 page report requires 2-3 weeks to complete. When completed, it summarizes your business’ current market value and overall asset health.
Level 2: Building from Level 1, we add thorough industry, demographic, and financial analyses. The 50-70 page report requires 3-6 weeks to complete and internally review. Typically, we use it for financing reviews, pending litigation, IRS audits, partnership disputes, and estate planning.
Level 3: Use the Level 1 and 2 analyses with added planning steps to prepare a business for transfer. The 50-100 page reports requires 4-8 weeks to complete. From there, you can use the report to project future value and determine the next critical steps. Reports include a tear sheet and an offering memorandum for marketing purposes.
Step 1: Determine the current market value of the business with Level 1 metrics that quantify how the value is derived and are comparable to other businesses.
Step 2: Compare the metrics from Step 1 to other similar business nationwide and in the local market, along with a min-max range estimate.
Step 3: Complete a detailed analysis of historical financial performance and evaluate the current business health and how it is changing over time.
Step 4: Consider the trends from Step 3 in context of how larger industry, economic and demographic forces may impact the future business value.
Step 5: Develop recommendations and actionable steps to address the trends from Step 3 and 4, along with a practical timeline to build future value.
Step 6: Formulate a ProActive Plan with the operations, financing, sales and marketing steps and investments needed to achieve increasing future value.
Discretion: Prior knowledge of a company sale can damage employee morale and customer confidence. However, our consultation services use number of techniques that minimize disclosure. That way, you can proceed with a discreet sale.
Staging: If a business does not properly prepare for a sale, qualified buyers might ignore it. So, we help you understand the metrics that buyers look for, and develop a plan to build them in to your business.
Marketing: We target specific complimentary (merging opposites) and diffused (expanding assets) buyers in your industry with email campaigns, phone calls, website postings, and exchanges with M&A services.
Step 1: We hold a confidential, in-person meeting to gain an understanding of your business and your exit objectives. There is no cost or obligation to you for this initial meeting and review.
Step 2: Once retained, we perform a ProActive Valuation of your company to ensure a comprehensive understanding of company value. We use this valuation to provide an objective basis for generating interest and evaluating offers.
Step 3: We’ll craft a professional presentation that sophisticated buyers require when evaluating a business. This includes a one-page summary and a detailed report that highlights your business in a compelling, marketable manner.
Step 4: We develop a local, regional, national, and possibly international marketing plan, then implement it to locate a qualified buyer that will offer the best terms and price for your business.
Step 5: We’ll arrange calls, meetings, tours, and reviews of your business with prospective buyers, while managing and tracking the presentation, disclosure, offer, and negotiation documents.
Step 6: When negotiations are finalized we’ll work with all the parties involved, including the escrow, seller, and buyer attorneys to create a Purchase and Sale Agreement and manage the deal to successful closing.