Are you selling a business in the Bay Area? We partner with business owners and entrepreneurs across a wide range of industries, specializing in companies with revenues starting at $1M. Our team is passionate about helping owners achieve successful exits, working diligently to price, market, and position each business for maximum value.
We serve clients throughout the Bay Area, California, and across the US. If you’re looking for an experienced business broker, The Bay Advisors is here to help. We specialize in business sales and valuations—connect with us to start the conversation.
My promise to the sellers whose companies I list is that I can secure a valid offer within 60 days of putting their company on the market. I don’t take a listing unless I know I can sell it. Here are the steps from start to finish:
- Get your financial records cleaned up.
- Get an opinion of value for your business. A broker will ask for specific information from you to produce an opinion of value (see Step 2), but once you have an idea of the likely range of offers your business will attract in today’s market, you’ll need to decide if that’s enough to fund your retirement. You’ll want to talk the plan over with your family and confer with your tax accountant to make sure you understand the income tax implications of taking the profit from the sale all at once.
- Our Proven Preparation & Go-To-Market System. Usually, we can have the marketing documents ready within two weeks of agreeing on the listing price. The Confidential Business Review (CBR) will include information on revenue, labor force, performance trends, competition, and growth potential, along with other key data.
- Vet and screen potential buyers. If your company is a strong listing, we may get dozens of interested buyers within the first couple of weeks. In some cases, I’ve seen as many as 200 requests for Non-Disclosure Agreements (NDAs). Your broker’s job will be screening buyers for financial viability and fit with the company. Your job as an owner will be keeping your foot on the gas, making sure your company is running smoothly and remaining profitable.
- Meet with the prospective buyers to determine if they’re the right fit for your business. We schedule in-person or virtual meetings where the buyer and seller can get to know each other, ask questions, and decide whether there’s potential to close a deal.
- Set a deadline for offers and decide which one(s) to move forward with. We set a deadline for buyers to submit their best and highest offer. Your broker will present the most viable offers and help you evaluate them. We don’t just consider price; there may be seller-financing structures and other terms to consider when determining which ones to accept.
- Begin the due diligence process. After accepting one or more offers, the due diligence can take anywhere from a couple of weeks to over a month, depending on the company or the deal’s complexity. During this time, the broker and the seller might meet with the buyer weekly to clarify issues and answer questions. Between calls, the seller’s team and the lender will verify data and may request additional documentation.
- Finalize the offer and open escrow. The buyer usually deposits about 10 percent of the offer price in escrow, which commits them to buying the company without conditions. During this time, the buyer and seller create a transition plan, including how they will present the sale to the company’s employees, who should be told after the sale is completed.
- Close the deal. The lender wires the remaining funds into escrow. I always tell sellers that a deal is not done until the funds hit the account. Anything can happen up until then, so the seller must remain engaged and manage the company through the very last day.
