The process of selling your business can take several months, so it’s important to have a plan in place. At Symmetrical, we specialize in guiding businesses through the acquisition process to achieve a strong deal. We work with middle-market sellers through this process all the time and understand the time and attention required to make a successful deal.
Here’s our step-by-step guide for sell-side M&A acquisition.
Symmetrical’s Checklist for M&A Sellers
PREPARATION (Month 1)
Before you share anything publicly, take care of these internal exercises to prepare for selling your business. As you begin the M&A process, you’ll lay the groundwork and organize your resources.
- Perform sell-side due diligence
- Establish your preliminary market valuation
- Review the preliminary buyer list
- Complete executive summary and confidential information memorandum (CIM)
CONTACTING POTENTIAL BUYERS (Month 2-3)
Next, you’ll begin by getting the word out that you want to sell your business. Work with your advisor to determine what type of forum is the most appropriate based on your business size and value.
- Contact potential buyers and distribute an executive summary
- Sign non-disclosure agreements (NDAs)
- Organize a secure online data room
LOI & NEGOTIATIONS (Month 3-4)
As the process progresses, hopefully, you’ll receive interest from potential buyers.
- Receive and evaluate initial bids/indications of interest (IOI)
- Set up management presentations
- Buyer diligence and data room access
- Respond to diligence inquiries
- Prep management for buyer presentations between IOI and letter of intent (LOI) timeframe
DILIGENCE THROUGH TO CLOSING (Month 5-6)
To wrap up your successful acquisition, you’ll process the bid(s) you receive and confirm the final details and transition of assets.
- Receive and evaluate final bids/LOIs
- Negotiate with lead parties
- Confirmatory due diligence
- Prepare definitive agreement
- Finalize documentation
The process for successfully selling your business through M&A is complex and relies on many contingencies and variables. But, with the right amount of time and diligence, you can achieve the best deal for your business. At Symmetrical, we have strong experience working with middle-market business owners in the selling process. We would be happy to lend you a hand — reach out to schedule a free consultation!