If you are like many business owners, you may find the prospect of selling your business to be a daunting challenge. For most, it is a once-in-a-lifetime experience that entails a largely unfamiliar process. It also involves an asset comprising a large percentage of your net worth, in addition to lots of personal blood, sweat and tears.
Through our Sell-Side Advisory service, we provide entrepreneurs and family business owners with an expert hand to assist them in preparing their business for sale; packaging and marketing it as a product that will attract qualified buyers; negotiating the price, terms, and conditions of its sale; and closing the deal.
Through our vast experience in M&A transactions, Pace has learned that successful Sell-Side engagements are generally premised upon:
In summary, Pace's proven, customizable sale process increases the probability of achieving premium economic value for a Seller's business, as well as the certainty of closing the deal.
You can learn more about how Pace incorporates these key success factors into its Sell-Side Advisory Service by selecting each of the four tabs below.
Pace will ensure that the business and its owners are thoroughly prepared for the sale process.
Prior to formal engagement, Pace:
After formal engagement, Pace:
Pace typically uses one of two basic methods for marketing and negotiating the sale of a business, with the choice of method determined primarily by the Seller's objectives, the nature and structure of the industry in which the Seller's business participates, and the prevailing supply/demand dynamics of the M&A marketplace.
A Controlled Auction is a carefully mananaged business sale process designed to produce competitive bidding among potential buyers. It is best suited for businesses that are likely to attract numerous potential buyers (e.g., a local/regional business that presents an excellent opportunity for multiple out-of-market companies in the same business to expand geographically) and for periods in the business cycle when M&A markets dynamics generally favor sellers.
The advantages of a Controlled Auction include:
The disadvantages of a Controlled Auction include:
A Negotiated Sale (also known as Targeted Sale) is a business sale process that includes a very limited number of potential buyers, one or more of which is highly likely to close the transaction. It is ideal for situations in which a Seller's business presents a very few potential buyers with a compelling strategic opportunity that potential buyers evaluating the transaction on a strictly financial basis could not realize. Consequently, the strategic buyers can afford to pay more than financial buyers, which reduces the need for a broad marketing process. In these circumstances, Pace works with Seller to develop an optimized marketing/negotiating strategy tailored to these strategic buyers.
The advantages of a Negotiated Sale (derived primarily from the small number of prospective buyers involved) include:
The disadvantages of a Negotiated Sale (arising from the small number of prospective buyers) include:
Pace works closely with Seller to determine which of these sale processes fits best with the Seller's exit objectives (economic value, transaction timing, and qualitative/legacy concerns) and customizes the marketing and negotiating strategy accordingly.
Pace develops a customized marketing strategy and transaction execution plan for every sale predicated upon the Seller's specific circumstances and objectives. Key elements of the sale process generally include: