Stonegate is experienced in the CONFIDENTIAL presentation and sale of middle market enterprises. We prepare a written marketing proposal for prospective sellers, and allow them to review, approve and control all descriptive documents as well as the important balance between adequately penetrating the pool of prospective acquirers and maintaining confidentiality. In selecting an intermediary to guide you through the ‘marketing to closing’ process, select a firm that is qualified, experienced, driven, and most importantly, shares your ethical standards … taking the time to understand your company, your industry and your objectives.
There are a myriad of ingredients that go into the sale of a middle market enterprise.
The Ten Most Important Considerations In The Successful Sale of a Business Are:
1 ) Establishing a Realistic “Fair Value” of the Assets or Enterprise Being Sold 2 ) Determining the Best Market(s) and Methods for Reaching a Deep Pool of Qualified Acquirers 3 ) Confidentiality of Distributed Information and Personal Contacts 4 ) Continuity of Operations, Product Quality and Customer Service Prior to a Transfer of Ownership 5 ) Managing the Contribution of Professionals (Intermediaries, CPA’s, Attorneys, etc. ) 6 ) Controlled Timingof Lender, Lessor, Employee and Vendor Notifications 7 ) Acquirer Financing and Transaction Structure Alternatives 8 ) Required Documentation and Filings 9 ) Transaction Costs 10 ) Accurate and Current Financial and Operational Records
Determination of your company’s cash flow is a valuable first step in evaluating its marketability. A commonly used method of defining ‘cash flow’ (recasting the profit & loss statement) for middle market enterprises is outlined in this worksheet: