The Process

  1. Questions that start the process.
  2. Commitment
  3. Valuation and Value maximization
  4. Coonfidential Information Memorandum
  5. Confidential Marketing to potential buyers
  6. Transaction Management
  7. Closing
1. Questions that start the process.
When do I plan my exit strategy? How do I decide whether to expand or sell my business and what are the next steps? Graddon Equity Advisors can provide an initial free consultation to discuss the several possible planning decisions for your business. We have been there, so we can point you in the right direction. Whether you are considering raising capital for growth, considering selling your business or planning your exit strategy — we have resources and experience to help you through the process.
We know the questions and how to determine the answers to those questions.
  1. When is the right time to sell or transfer the company?
  2. How much do I need to meet my retirement plans or fund my next venture?
  3. What is the value of my company?
  4. Who is the right kind of buyer to sell or transfer my business to?
  5. How can I minimize the amount of tax I pay on the transaction?
  6. How can I maximize the value of my company for a financial or strategic buyer?
  7. If something happened to me, who would run my business?
2. Commitment
Once you have decided the time is right to sell your business, we can discreetly market your business without alerting your customers, employees or competitors, until the time is right. We provide you an agreement where you are only charged the transaction fee when we are successful. Until the sale is complete we only charge for our initial company valuation processing and out of pocket expenses.
3. Valuation and Value maximization
There are several ways to value a service company. When we value your company we will talk with you about the factors that will add value for a potential buyer. After the valuation we will provide you insight into what the strengths of the business are and suggestions on what will enhance the value. You may then determine that it would be beneficial for you to work on value enhancement for a period of time rather than selling the company at this time.
4. Confidential Information Memorandum
After the valuation of your business we prepare a document called a Confidential Information Memorandum. This is a book that we prepare that tells a qualified buyer the information they need about your company that presents your company in a clear and attractive presentation portfolio.
5. Confidential Marketing to potential buyers
There are few things more potentially damaging to your service business than information getting out to your competitors, customers or employees that your company is for sale. We know how to keep your information safe and secure while we discreetly market the business to qualified potential buyers that are under contract to keep your information confidential.
When the time is right to inform your employees and customers, we will help you with that announcement too.
6. Transaction Management
Once we have found and selected a qualified buyer, we inform and assist the buyer on how to propose an offer that accomplishes the transaction objectives that are important to you. Then we request a letter of intent (LOI) from the buyer. Next we help you analyze the offer and, if necessary, prepare the counter offer. Before we return the counter agreement we need to have your transaction attorney and tax advisor review the agreement and make any needed changes.
The next step in the process is for the buyer to prepare a purchase agreement. Then, your transaction attorney should review this agreement to make any necessary adjustments.
Prior to closing the transaction, the due diligence process takes place. This is where the buyer and their representatives count all inventory; check contracts and leases; analyze your accounting and operations systems; and basically verify what you have represented is accurate.
7. Closing
There is nothing in the world like the feeling of a large amount of cash wired to your bank account. After the sales process and the final documents have been signed, you set up the wire instructions for the funds transfer to your bank and wait to be notified that the funds have been received in your account. Now it is time to have a celebratory dinner with someone special and plan the next stage of your life.