The decision to sell your businesses may be the most important decision of your life! You've put energy, effort and sacrifice into it and now may be the time to reap the reward and turn your businesses into cash. But please be aware that you face demanding and complex procedures, inevitable pitfalls and other costly dangers. As deal-makers we are a group of professionals who are M&A specialists, financial advisors, and business sales specialists -- use us for your benefit to accomplish your goals.

Perhaps right now the question should be, "why should I want to sell my successful business?" Perhaps its a feeling of boredom, burned out with the day-to-day routine of the businesses demands. Regardless of what the reason is, once you've begun the selling process there are certain steps that everyone has to go through, if you want top dollar. Almost anyone can sell their business and we've found that 3 out of every 4 business owners leave dollars on the table. Very few can sell their own businesses for top dollar value.

One of the keys to successfully selling your business is allowing us to help you position your business before you begin to sell. You have to make its financial structure and growth potential look as attractive as possible to a potential buyer. You have to see the sale from the buyer's eyes.

In essence, you have to determine the true value of your businesses or you'll never be able to know if an offer is high or low. The fact is, We've found that most business owners are unaware of the true value of their operations.

From a buyers point of view, objective documentation is essential. Most important, the buyer is buying the future, the business's growth potential, consistent cash-flow, and dividend paying capacity. In other words, the buyer is looking for the all important ROI. Market research is the key. It's complicated and very difficult to do, and that's why we will work to do it for you. We realize that you have an emotional involvement in your business that either you might value it to high or you value it to low because you've been personally involved.

The initial positioning process contains several steps. To begin with, a fact-finding visit with you. Our role in helping you achieve your goals are to first determine the true marketability of your businesses, as well as its business value and dynamics. We will visit with you, but please know up-front that we will be extremely careful to transact our business in a confidential manner. Be assured that you will be informed of every aspect of the deal as it moves forward. Your approval of deal points is paramount, in allowing the process to move forward.

In order to create the fair market value of your businesses, we must perform a critical business and financial analysis - a business valuation. Quality valuations are made up of many components: (1) recasted financials, (2) market research, (3) pro-forma development, (4) determining strengths and weaknesses, (5) deal structuring, and (6) value [ROI] for the buyer, and much more.

The quality valuation usually takes 21 to 30 days to complete. We have to probe into your business, your competitors, as well as your market/industry. Our valuation is for your eyes only. It includes an analysis of every aspect of your business, both pros and cons. We don't and won't pull any punches, and it allows you to see the positive as well as the problems that might discourage potential buyers. This will allow us to know all aspects of the business, and know what to change before we go to market.

Buyers are less concerned with the history of your business than they are in its future and the potential profits they can make for them. They're buying ROI. We will use sophisticated accounting, tax and growth procedures to recast your financial statements, and market research to determine your future value. Often, recasting substantially increases the apparent earnings of businesses, which makes them more attractive to potential buyers. Recasting is an acceptable valuation practice. After recasting your financial records, we will use the records to build a projection of the businesses growth potential -- a proforma.

Packaging comes next. We will suggest changes that will make the business appearance as attractive as possible to potential buyers. We have up to the moment detailed information on every aspect of business statistics and buyer data which is being consistently updated to help us support the sale of your businesses for top dollar. We consistently check and double check the figures because information and formulas applied to your businesses have to be absolutely correct and accurate. If they're not, they won't be credible to the buyer.

The final step in the valuation process is deciding on an appropriate deal structure. A deal structure includes your future personal needs as well as specific rewards. An optimum deal structure is much more than a cash transaction. Once the valuation is completed, the preliminaries are over, it's time to actually sell your businesses. At this point we would critically evaluate your options with you and determine a "go-no go" posture. If we "go," then we must discuss all of the details involved in getting your business ready for sale. At this point, the valuation process ends, and the next phase begins -- the selling of your business.

As dealmakers, we are conversant, and have studied the complex problems associated with negotiating a business sale. Dealmaking is critical to the selling of your business. We understand the business of business. We've gone through the process many times and we know what to expect and what pitfalls to avoid. We also realize that this process is somewhat new to you, and we will travel the road together at a pace that will be acceptable to you. Although we are your advocate, we are also objective to the process. We won't let our emotions compromise the value of your deal. As deal makers we understand buyers, and what they are looking for in a deal. We also understand and are very cognizant of what you are looking for from the deal. Our most important role is in representing you and protecting you and your interests. We are aware of all of the technical workings of the deal and the possible traps to watch out for. As your dealmaker, we understand the entire process, and we carry the ball to make the deal happen for your benefit.

Next, from the market research and the valuation report we prepare a confidential detailed review. It's a detailed guide for a qualified buyer(s), who will have at their fingertips objective information on the value of your company and documentation of its future value. It is essential that all of the information in this report be accurate in order to avoid legal entanglement. The business review will be entirely confidential, in fact your company's name will not appear on the document. This is to protect you from competitors and premature rumors of sale. A shorter version of the business review, a 2 to 3 page business profile (executive summary) is also created and is available for a potential buyer(s).

Selling your businesses is a process, and it is important that the entire process be fully understood and carefully completed at every stage. We handle the entire process. We are a friend when you need us, but not there to bother you while you conduct business. We take the burden and pressure of selling while you maintain the positive picture that would be attractive to a buyer(s).

There are three main steps in selling any business. Prospecting, negotiating, and closing. For instance, in prospecting we must first determine the largest number of qualified buyers who would be interested in buying your business. Secondly, knowing who within a given company is the proper contact person and decision-maker. It is also very important to know a company's buying history, how they put deals together, and how they act after the deal is over.

After a realistic buyer is in position, the negotiation process begins. In the negotiating process we learn the needs of the buyer and any objections. It sounds simple, but it could be a time consuming task depending on the needs of the buyer. We serve an important role as a mediator. We work with both sides to make sure all information and needs are understood and properly transmitted.

Negotiations could be tough and selling your businesses could take some time. We will discuss all aspects of the sale and strategize with you, and implement a solution for a mutual buy/sell advantage. It has to be good and pretty equal for both sides or there won't be a deal.

If a prime buyer "falls out," there are many sophisticated techniques which may be utilized to obtain top dollar value for your businesses from other buyers. One could be a silent auction system that pits groups of three or more buyers against one another. We never mention a price. He who mentions a price first either sets a ceiling or a floor. That could only hurt us. Instead, we let the buyer mention the price. If there's more than one buyer bidding for the business, you are more likely to get a higher offer. We can keep several buyers "hot" all of the time, which puts us in control and which in turn helps you to arrive at a successful sale.

Even after the negotiations are over, the sale is still not assured. Due diligence is a very big part of closing the deal. It is a process whereby the buyer brings in his team of experts: financial, legal, and technical to substantiate the representations and information provided to them. If material discrepancies are found, it could put the entire deal in jeopardy.

The most important thing we do for you as dealmakers, is to completely understand your objectives and help you complete a deal that will satisfy your goals -- and of course bring you a profitable deal in the process.

To sum it up, we will carefully prepare a business valuation to complete "Phase One." In "Phase Two," we create a confidential business review, we prospect for a potential buyer(s), you/we enter into a negotiation, receive a letter of intent, and survive the all important due diligence process.

Selling your business is a very specialized skill, and we can't use trial and error techniques. We only have one chance to do it right. So when we sit down at the negotiating table we want everything to be in position to give you maximum benefits.

For more information on how to properly sell your business, please complete the information request form.

Lee, Sperling, Hisamune
550 North Brand Boulevard, Suite 525
Glendale, California 91203
Phone: (818) 507-6645 - Fax: (818) 507-7891
Email: lsh@leesperling.com