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Key Steps To Selling Your Business Without A Business Broker

Key Steps To Selling Your Business

Without A Business Broker

There are a number o important steps involved in selling any business and it is critical to be mindul o them.

The essence o the title o this chapter suggests that you can save money by selling your business without

a business broker. However, you should heed the warning that by approaching the sale o your business

without at least a roadmap or success, a systematized approach or a mentor with the experience to guide

you through the process, you may leave substantial value on the table.

Step 1. Prepare your business or sale

Step 2. Get a sense or the value o your business, so you can assess whether an oer you receive is aair one. That can be done through a qualifed business valuator or through a mentoring program

that provides that service at the outset o the program.

Step 3. Prepare a confdential inormation memorandum that profles the business.

Step 4. Prepare all support documents including:

nConfdentiality agreement

nTeaser document

nFinancial summary

nNormalization adjustments

nFinancial orecast

nBusiness overview

nCompetitive analysis

nIndustry overview

Step 5. Develop a list o qualifed purchasers. This will oten be obvious to you and it may even be a

little scary to put together, because you may be worried about confdentiality issues. However

dont worry about that at this stage, instead compile the l ist o potential purchasers, which may

include: competitors, suppliers, businesses that are in similar industries, private equity frms

(fnancial buyers) that are visible in your industry, your own management team.

Step 6. Initiate contact with potential purchaser list on a no-name basis. This is usually done direct by

telephone and NOT by circulating an email.

Step 7. Execute confdentiality agreements (available rom your lawyer, advisor or mentoring program).

Step 8. Send out the Confdential Inormation Memorandum to all interested parties that have executed

the confdentiality agreement.

Step 9. To the extent possible advance all negotiations and discussions with all parties along a similar

path so there are more parties at the dance that will drive up the price.

Step 10. Accept oers and execute a letter o intent (available rom your lawyer, advisor or mentoring

program).

Step 11. Facilitate purchaser due diligence.

Step 12. Drat and complete legal agreements

Step 13. Close the deal and cash the cheque.

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Key Steps To Selling Your Business Without A Business Broker

ABOUT EQUICAPITA

Equicapita is a private equity und that acquires established, private, small and medium sizedenterprises (SMEs) located primarily in Western Canada. Equicapitas investment drivers are toacquire operating companies at attractive valuations, with a history o generating sustainable cashow and proven management teams. Equicapita believes that there is:

- a generational opportunity to acquire baby boomer SMEs; and- a unding gap in the $2 to $20 million enterprise value range.

The retirement o baby boomer business owners has been described as triggering one o thebiggest transers o corporate assets on record in Canada. This creates an environment with anabundance o opportunities to acquire SMEs with long-term operating histories, at attractive cashow multiples. Equicapita provides investors with access to this alternative asset class via anefcient RRSP eligible structure.

DISCLAIMER

The inormation, opinions, estimates, projections and other materials contained herein are provided as o thedate hereo and are subject to change without notice. Some o the inormation, opinions, estimates, projectionsand other materials contained herein have been obtained rom numerous sources and Equicapita and itsafliates make every eort to ensure that the contents hereo have been compiled or derived rom sourcesbelieved to be reliable and to contain inormation and opinions which are accurate and complete. However,neither Equicapita nor its afliates have independently verifed or make any representation or warranty, expressor implied, in respect thereo, take no responsibility or any errors and omissions which maybe contained hereinor accept any liability whatsoever or any loss arising rom any use o or reliance on the inormation, opinions,estimates, projections and other materials contained herein whether relied upon by the recipient or user orany other third party (including, without limitation, any customer o the recipient or user). Inormation may be

available to Equicapita and/or its afliates that is not reected herein. The inormation, opinions, estimates,projections and other materials contained herein are not to be construed as an oer to sell, a solicitation oror an oer to buy, any products or services reerenced herein (including, without limitation, any commodities,securities or other fnancial instruments), nor shall such inormation, opinions, estimates, projections and othermaterials be considered as investment advice or as a recommendation to enter into any transaction. Additional

inormation is available by contacting Equicapita or its relevant afliate directly.