Business Valuation
Market Price Analysis
Senior Associate Advisors offer a personal approach for lower middle market M&A, guiding you through 8 Steps to sell your business.
- The Initial Consultation: Your Ceylon Equity Exchange Advisor will listen to your needs, work with you to define your goals, help you compile the necessary documentation, discuss financial modeling, and assist with obtaining financing letters of interest.
- Market Price Analysis Valuation: A comprehensive review of your financial statements will be conducted to provide a Market Price Analysis for your business’s valuation. We will thoroughly review the findings with you to ensure the market value aligns with your expectations.
- Marketing for Results: Our goal is not just to list your business but to sell it! Once the value is determined and a price is set, we immediately begin crafting your marketing materials. Your Ceylon Equity Exchange Advisor will develop a tailored marketing strategy and confidential business profiles that highlight your business history, future projections, and strengths. Using these materials, we will discreetly search for the right buyer from both our extensive database and outbound marketing efforts targeting strategic buyers.
- Creating the Buyer Pool While Maintaining Confidentiality: Once potential buyers have shown a genuine interest in your business (based on general information, without revealing your company name or address), they will be asked to sign a non-disclosure agreement (NDA). After this is signed, they will be given the initial confidential business profile. If their interest persists, they will need to provide proof of funds or their financing source. If their financial position is deemed appropriate, they will be provided with a comprehensive confidential business profile.
- Buyer & Seller Interaction: By this point, the buyer will have sufficient information to determine whether to proceed with a face-to-face meeting or a conference call. If they wish to move forward, meetings and/or calls will be scheduled. These can take place at your business location (typically outside business hours) or at the Ceylon Equity Exchange Advisor’s office.
- Fielding Offers: Offers may come in various forms, with the most common being the Letter of Intent (LOI) or the Purchase Agreement. Each has its own benefits depending on factors like the number of interested buyers and their respective offers. It’s important to note that there may be multiple iterations before final acceptance.
- Offer Acceptance and Due Diligence: After an offer is accepted, the buyer’s due diligence period begins. This phase may involve various parties, depending on the buyer’s level of sophistication and the type of business being sold. The buyer’s CPA (due diligence consultant) and/or their attorney typically participate in this process.
- Due Diligence Release and Closing: Once all due diligence and contingencies are resolved, preparations for closing are made by a neutral third-party, such as a closing attorney or escrow officer (depending on the state your business is located in). At closing, the sale proceeds are wired to you as the seller, and the ownership documents are transferred to the buyer, completing the ownership transition.