How long does the process take?
Although the identification of interested and qualified buyers is almost immediate, the entire divestiture process can take approximately six to eight months and can be increased or shortened significantly by the responsiveness and motivation level of the seller.
The process can be broken down into three distinct phases:
Initial Assessment & Valuation, Aggressive Marketing Implementation, and Buyer Diligence through Closing.
Initial Assessment & Valuation involves the analysis of the business, professional "packaging" of the company, and developing a pricing and marketing strategy.
• Analysis of Business & Recast Financials 1-2 weeks
• Determinine Valuation & Pricing 1-2 weeks
• Identify Buyers & Develop Marketing Strategy 1-2 weeks
• Create Company Profile & Marketing Materials 1-2 weeks
Aggressive Marketing Implementation involves securing confidentiality, and then working with, qualified buyers to obtain Letters of Intent (offers), negotiating price, terms, and overall deal structure.
• Obtain Full Confidentiality Agreements from Buyers 1-2 weeks
• Present Business to Qualified Buyers 4-6 weeks
• Solicit offers and Negotiate LOI 4-6 weeks
The Buyer Diligence through Closing phase starts after an LOI is accepted and involves the buyer conducting Due diligence (a review of all claims made by the seller) as well as final negotiations of the Definitive Purchase Agreement and the closing of the deal.
• Due Diligence 4-8 weeks
• Negotiate Definitive Purchase Agreement & Closing 2-4 weeks
These time frames are approximate but based on over 11 years of experience.