How We Work

The decision to sell your business is a serious one. We can give you the information you need to help you make it. Given what we must do on a consistent basis, what is at stake, combined with the variables and complexities involved make having a well-structured process paramount.

The ValueCap sell-side process is designed to maintain confidentiality, maximize efficiency, reduce risk and improve the chance for an optimal end result. We call our process, The Five Ps.

Preparation

Most of our sell-side clients have profitable and reasonably well-run businesses. While those things are beneficial, they do not guarantee that the business owner has created an asset with transferrable value. We help our clients understand the distinction and educate them on what drives value in business. If necessary, we can assist our clients with improving specific value drivers within their business in an effort to increase the business’ valuation.

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Pricing

For most business owners the sale of their business represents the single largest financial transaction of their life. Our clients rely on us to help them understand what their business is worth, and be able to defend that number to a buyer and their advisors. Unlike many brokers or other advisors, we do not adhere to the back-of-the-napkin approach. We require our clients to have a bona fide valuation/appraisal prior to going to market, whether we do it or not. We have the requisite skills, experience, and tools to conduct valuations, and at the highest possible level. For clients who hire us for that service, we credit those funds back to them at the closing table. Get started now!

Packaging

The creation of confidential marketing materials begins with a Teaser – a short blind-ad styled document that highlights a few key points. It’s used to pique interest prior to executing the non-disclosure agreement (NDA). With a signed NDA and your approval, we can then present the primary sales document – the CIM (sim) (Confidential Information Memorandum) or CBR (Confidential Business Review). This document will tell the story of your business and include information like: business overview, products/services, business highlights, owner’s role and staffing, industry analysis, buyer opportunity, picture gallery, a financial summary, and more. This is your first impression to influence potential buyers to learn more.

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Promotion

We design, implement, and manage a marketing program customized to our client’s business. A number of factors determine the mix of tactics used to source qualified buyers: buyer personas, size, business type, model, industry, and value of our client’s business. Tactically, we employ some “secret sauce” as well as more traditional options like buyer databases, online portals, our website, social media, list building, and our networks. Coordinating non-disclosure agreements and vetting qualified buyers for our clients is a key part of the sales process leading to the acceptance of a letter of intent.

Project Management

The acceptance of an offer is an important milestone and begins the most critical stage of a deal – due diligence. Due diligence requires sharing a great deal of additional information, in-depth evaluation of financials, and time-sensitive actions to be completed. We begin aggregating this comprehensive data set early in the process. It includes licenses, permits, titles to vehicles or equipment, corporate and financial records, leases, and much more. Our detailed process eliminates the challenging task of coordinating communication and activities with the buyer, seller, their attorneys and accountants, spouses, partners, and financial institutions.

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Summary

Obviously, this requires patience, endurance, tact, and a tremendous amount of technical expertise. Our 5 Ps process enables us to herd the cats, avoid friendly fire, manage a long list of items and ultimately get the deal closed for our client.