The conceptual foundation of IBG's innovative strategy is this: Many business owners believe that the process of selling a firm begins with the decision to sell -- in reality, that decision should come later in the process.
Before the decision is made to bring a firm to market, we thoroughly evaluate the client's business and personal needs. Once expectations have been clearly established and the decision to take the company to market has been made, we implement a customized marketing plan, maximizing value while maintaining confidentiality and minimizing disruption to the business.
IBG's meticulous, step-by-step method ensures full disclosure and the documentation needed to defend the terms of a sale long after completion.
IBG's Unique Seven Step Process
Customized for Each Client
1. Identification of the Seller’s Objectives
IBG's first step is to develop a clear understanding of our client's selling requirements and strategic goals; these include determining the seller's desired 'need value', timing, tax consequences and level of future involvement (if any). Once we have established our client's targets, we can accurately design and execute the strategy that will most effectively satisfy their needs and aspirations.
2. Analysis and Evaluation of the Company
80% of a typical private business owner’s net worth is tied up in their business. As a result, an accurate determination of a firm’s value is essential to ensure proper compensation for years of hard work and personal investment. IBG believes the fair market value is the minimum value that should be targeted in a sale. By identifying synergistic, strategic, industry and financial buyers, we achieve a transaction that often exceeds the fair market value for a firm.
3. Decision to Hold or Sell
The best time to sell a business is when the market is paying top dollar and when a company has reached an optimum rate of growth. These factors affect the firm’s potential value and must be weighed against the needs of the seller.
After completing the evaluation, IBG advises the seller and assists in the decision of whether or not to bring the firm to market at that time. If the potential value of the business does not meet the seller’s 'need value', the best strategy may be to wait and grow the business, maximizing the sale value acheived down the road. If the decision is to wait, IBG will provide the seller with a free annual evaluation update for the next three years.
4. Creation of a Confidential Business Report
IBG develops a comprehensive report to present the business acquisition opportunity to prospective buyers. This client-approved report provides an in-depth review of the company’s strengths, weaknesses, obstacles and opportunities.
The Confidential Business Report (CBR) presents weaknesses as growth opportunities, validating and reinforcing the future earnings potential of the company. It streamlines the business review process and allows IBG to communicate effectively with buyers from around the world.
5. Development of a Strategic Marketing Plan
The IBG team engineers a customized and targeted marketing strategy to identify potential acquirors. State-of-the-art technology allows our research team to match your business with a select list of the most qualified buyers.
The research team reviews our proprietary database, which includes detailed acquisition criteria of thousands of potential buyers. Local, national and international advertising initiatives are planned to market the company to the appropriate audience. Our affiliations with over 200 intermediaries and brokers throughout the world ensure discreet access to an even larger pool of expertise and resources.
6. Implementation
After developing the most effective and appropriate strategy, and receiving full approval from the client, IBG implements the marketing plan. Pre-qualified and motivated buyers are approached with a Confidential Seller Profile that describes the basic opportunity in enough detail to spark interest but without enough information to identify the company.
When prospective buyers express further interest, they are required to meet financial qualifications and to execute a contractual Non-Disclosure and Confidentiality Agreement. Upon verification of the fulfillment of these requirements, the Confidential Business Report is then forwarded to the interested buyer. All exchanges of information are strictly controlled and specifically designed to protect client confidentiality.
IBG coordinates and leads all client-approved conferences, site visits and negotiation sessions in order to obtain the most favorable purchase proposals. This process continues until a satisfactory agreement of value and the accompanying deal structure is reached. Our goal is to create a competitive bidding environment, as it enables the seller to obtain maximum value.
7. Closing
Finally, IBG partners with the client’s legal and accounting team to orchestrate a definitive purchase agreement that finalizes all details of the transaction. We coordinate negotiations, letters of intent, due diligence and financing options. IBG can even assist in the procurement of financing from a selection of 2,200 lending institutions, private equity groups and mezzanine lenders. A successful closing results from navigating through an extremely complex field of issues; IBG's expertise paves the way for you to reach your goal.