The Sale Process
Selling a business is a time-consuming process. It generally takes anywhere from six months to over a year to successfully sell a business. There is a significant time commitment required from the seller of the business, which often is in addition to the day-to-day activities of running the business. The sale process involves:
Sell-side due diligence to identify readiness for a sale and any potential barriers that require fixing.
Pre-marketing Preparation (45 to 120 days for well-managed business with proper financial and operational processes otherwise it will take longer)
Preparing the Teaser – a “no-name” document to be shared with potential buyers.
Preparing the Confidential Information Memorandum – a detailed overview of the company to be shared with potential buyers who have signed a Non-disclosure Agreement (NDA).
Preparation for setting up a data room where the seller posts all due diligence material.
Normalization of financials - generally needed for most middle-market businesses.
Getting the seller team ready for a transaction.
3. Marketing the Company for Sale (75 to 150 days)
Reaching out to potential buyers.
Preliminary conversation with potential buyers and assessing their ability to execute the transaction.
Initial meeting of the buyer(s) and seller.
Negotiating a Letter of Intent (LOI).
4. Closing Process (60 to 150 days)
Buyer Due Diligence.
Drafting & Negotiating of Agreements.
Preparation of Transition Plan, including readiness for Day 1 after successfully closing the sale.
At Distinct Capital, we bring over 70 years of collective experience in successfully selling a business. We will work hand-in-hand with you and guide you through the sale process and ensure a timely close of your deal.