Exiting the Business
As you consider exiting your business, you will probably wonder exactly what Province Group (as consulting intermediary) does to facilitate the process. For most business owners, exiting their business is a "once in a lifetime" event. The intermediary has the advantage of being involved in the process on a daily basis and will advise the client on suitable options available to achieve their specific objective. PGLC performs the following services on the client's behalf:
Pricing the Business: The intermediary will use their expertise, resources, and knowledge of the market for the Seller's business to determine an optimum asking price for the business; and should offer the client the option (and explain the benefits of) a third party valuation by an independent appraisal firm.
Business Outline: A one page generic summary of information on the business offered for sale will be prepared, which is approved by the Seller before providing it to any potential Buyers. It addresses the universal questions of a Buyer's initial inquiry, without divulging anything specific about the business that could compromise confidentiality.
Confidential Business Profile: A comprehensive profile, which is also approved by the Seller (prior to releasing it to any potential buyers), is prepared to cover all pertinent aspects of the business, promote its strengths (and also shore up any possible perceived weaknesses), and used to address an increased level of sincere interest in the business from a qualified Buyer. After touring the business and meeting the owner, this Profile reinforces what the Buyer has seen and usually provides enough specific information to make an offer on the business.
Marketing the Business: A marketing strategy will be developed to attract an ideal Buyer as envisioned by the Seller. The strategy includes researching the Province Group data base of Buyers, advertising the business on internet web sites, newspaper and other print media, and presenting the business as for sale to co-operating intermediary firms (primarily IBBA members), all as is appropriate for your business and the targeted Buyer.
Screening Buyers: After receiving the Outline in response to their initial inquiry, Buyers are required to provide a resume and written proof of financial capacity, adequate to purchase your business, and sign Province Group's Confidentiality Agreement, before any specific information is provided on the business.
Show the Business: For a pre-qualified Buyer to tour the business and meet the owner; arrangements will be made by the intermediary directly with the Seller, always and only by appointment, with appropriate notice, and usually with the Buyer accompanied by the intermediary.
Regular Updates: According to the method and frequency agreed upon; the intermediary will contact the Seller with information on the activity, and responses to various types of advertising, and feedback on Buyer tours of the business.
Buyers Offers: The intermediary will work with Buyers to prepare only bona fide offers, and present all such offers to the Seller for acceptance.
Due Diligence: The intermediary will counsel the Buyer and Seller on thorough, but reasonable due diligence to verify the business information provided by the Seller (to the intermediary) for presentation to potential Buyers.
Advisors: The intermediary will coordinate the functions of both Buyer's and Seller's advisors (attorneys, accountants, bankers, etc.), for a successful closing.
Ownership Transition: The intermediary will assist the Buyer with various government agencies for the transfer of licenses, permits, etc., telephone, utility, and other outside service providers to facilitate smooth and orderly transfers.
The Consulting Intermediary is a skilled professional, formally trained in the multiple disciplines encompassed in the transfer of business ownership. Their primary goal is to facilitate a balanced transaction, which is equitable for both Buyer and Seller, while always making every attempt, when consulting on the structure of the transaction, to achieve the Sellers specific objectives.