The ABIC Confidential Selling Process

The best and quickest means to start a confidential, discreet process to sell a company or divest ownership interests is to call us at (937) 293-9700.  However, if you prefer to first understand how we function, the following explanation should be helpful.  Please note the special emphasis on confidentiality and discretion plus the continual effort to maximize the return on your investment.

There are many ways to sell or merge a company; however, we believe there is only one right process to maximize the Seller's return on their investment. It is a process that prepares all the information ahead of time so the selling activities are maintained on a positive level. Over the last 30 years, ABIC has developed a sincere, honest approach to bring a company to the market.  Our process provides professional, local representation to the world market for mid-market companies.  Our IMAP (largest network of M&A firms in the world) membership offers a confidential presentation with complete understanding of local cultures and customs which streamlines the intricate international selling process.

The following is a partial listing of steps which offer a glimpse of our successful process:

1.  Review of Seller Interests and Time Frame

• Does the Seller want a 100% or partial sale of corporate shares or an asset sale?
• Would potential Buyers also include employees or competitors?
• Is there an urgency that needs to be addressed or is the Seller looking for a future sale?

2.  Review of Company and Posture in the Marketplace

• What are company strengths or weaknesses?
• How does the company stack up compared to competition and what is the future outlook?

3.  Analysis of the Last 3-5 Years Financial Statements

• All Buyers will require a past history of Financial Reports.  It is best to have an initial understanding of what they will see.  This includes a spreadsheet analysis that offers a comparison of prevailing changes that have occurred in recent times (3-5 years).

4.  Restatement and Reallocation of Financial Results

• The purpose of this step is to develop a true maximized economic benefit that will be available to a Buyer.  This includes reallocation of excess Seller benefits (salary, auto, etc.) identification of charges that are one time or non-repeating and any other charges not relevant to a new Buyer.

5.  Company Valuation Determination

• This is a very important step for the Seller to have a realistic expectation.  We provide a process that is easy for a Seller to understand who does not have experience in the M&A activities.  Our valuations also help to posture and present the best image of the company

6.  Most Advantageous Approach to a Sale

• How to offer the company.
• Will it be cash at closing, a Proforma payout, Seller financed, a partial sale with a term buy out?
• What will be included with the company (what assets) or not included?
• Will the sale be auction style, semi auction, or creation of a private sale, etc?

7.  Preparation of an Offering Memorandum

• This is the most significant and important step in the presentation process.  The Memorandum must be just right so it is complete and provides effective image building information, however, not appear to be a shop-worn offering.  The Buyer should have a feeling of privilege to receive this Memorandum.

8.  Market Plan

• Will it be a "shotgun" or "targeted" approach and what is the timing of each phase?
• How will prospective targets be determined?
• When and how will they be contacted?
• What degree of information will they receive and what is the timing?

9.  Establish the Confidentiality Required

• All Buyers are required to sign confidentiality agreements and Sellers may want to approve certain Buyers prior to disclosure.

10.  Implementation of the Marketing Plans

• How will the company be presented in advertising, blind disclosures, direct solicitations and what networking is to be used?
• Use of our membership affiliations (such as IMAP) which could be invited to the table for participation in a sale.

11.  Identify, Interview and Qualify all Potential Acquiring Parties

• Determine capabilities of parties including financial abilities and synergistic fit with the Seller.
• What expectations will there be for the Seller to stay with the company and with what authority?
• Analyze and determine which Buyers offer the best opportunity for the largest return on the Seller's investment.

12.  Negotiate an Acceptable Letter of Intent or Contract to Purchase Leading to Due Diligence and a Final Closing Agreement

• Work with Seller's legal representation to develop final closing documents.
• Close the transaction with a win/win for all parties concerned.

Should you, the Seller, not be ready to place your company on the market at this time, we would still like to meet with you.  We will help you determine how to best posture your company for a sale and guide you through the valuation process.