By Adam Friend | Senior Vice President of Business Development
The process of selling your business can be very intense, and involves a lot of effort in addition to running the day to day of your business. The general process works as follows. Timing can vary based on how well prepared the seller is, as well as whether any issues arise that require particular extra analysis. The average deal process takes between 3-4 months from initial agreement on basic deal terms until a closed sale.
Put in place a non-disclosure agreement (“NDA”) to make sure the information you share is protected. Note that in the early stages it is generally not expected that you will be sharing detailed information about clients, pricing, staff or reporters.
Buyer will provide the seller an initial information request which consists of basic historical financials for the last 3-4 years, general information about office leases, staffing, case or client concentration, and your desire to continue with the business.
Buyer provides the seller its valuation and major deal terms (1 -2 weeks).
Once major deal terms are agreed upon, full due diligence ensues, with more detailed financial, legal and operational information requested and evaluated (6-8 weeks).
Legal documentation begins once major due diligence items have been provided (3-4 weeks).
Integration planning takes place through process to ensure smooth transition post-closing (in parallel).
Legal documentation finalized and deal closes.
Video Testimonial – Jilleen Stelding
