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First Choice Business Brokers M & A Advisors

Lower Middle Market Services for Businesses Up To $25 Million in Revenue

Office buildings signifying a larger merger or acquisition

First Choice Business Brokers M&A Advisors pride themselves on their ability to bring robust experience and knowledge to the under served market of lower middle market business owners. These business owners may have started in a small office space or warehouse and created a thriving business large enough to attract Private Equity Groups, strategic investors, high-net worth individuals and larger companies strategically looking to enter a new market or absorb market share. While there are many moving parts in this type of business sale, the process can be simplified to these steps.

 

  1. Initial Consultation - Your First Choice Business Broker M&A Advisor will listen and work with you to help you define your goals, compile needed documentation, discuss financial modeling and obtain financing letters of interest.
  2. Market Price Analysis (MPA) - A thorough review of your financial statements and detailed surveys will yield a valuation range for your business. We will carefully review our findings with you to determine if the current market value will meet your expectations.
  3. Marketing for Results - Once a determination of value has been discussed and a price set, the development of a marketing strategy and creation of marketing materials will begin. Your Advisor will develop confidential business profiles aimed at highlighting your performance, projections, strengths and opportunities. Using these materials, your Advisor will discretely target strategic buyers within our database as well as select channels.
  4. Creating the Buyer Pool While Maintaining Confidentiality - Once buyers are identified and they have expressed a substantial interest level based upon general information excluding your company name and address, they will be asked to execute a non-disclosure agreement. Once signed, the buyer will receive the initial confidential business profile. If their interest continues, the buyer provide proof of funds and financing before receiving a full confidential business profile package.
  5. Buyer & Seller Meetings - If the Buyer wishes to move forward, meetings and/or conference calls are scheduled. Meetings can either take place at the business location, typically outside of business hours, or off site as arranged by your Advisor.
  6. Fielding Offers - Expressions of interest to proceed may be presented in several different forms. Two of the most common are the LOI (Letter of Intent) and the Purchase Agreement. Each has their advantages and disadvantages based upon the number of interested buyers and their respective offering abilities. Expect several iterations prior to a full acceptance.
  7. Offer Acceptance and Due Diligence - Once an offer is accepted, the buyer’s due diligence period begins. The due diligence process may involve several parties depending on buyer sophistication and the type of business being sold. These parties typically include the Buyer’s CPA and attorney.
  8. Contingency Release and Closing - Once the due diligence is complete and the contingencies released, preparations for closing will be made by a neutral third-party escrow company. At closing, the proceeds are wired to the Seller and the ownership documents are wired to the Buyer for transition of ownership.

The total time frame from listing to closing differs for each transaction based upon the type of the business, the licenses required to operate the business, financing and other factors. Please contact your First Choice Business Broker M&A Advisor for more details.