1. Maximize Price & Terms
Prior to going to market with any business, we prepare a detailed opinion of value for the most probable selling price for the business. The more we learn about your business upfront, the better prepared we are to understand and promote the value for your business. We have found that there is often a tradeoff between price and terms. However, we have developed relationships with multiple third party financing sources which could allow you to achieve a strong sale price with minimum seller financing depending on your business, your industry and the adjusted net income on your business tax returns.
2. Non-Disruptive Sales Process
Our clients come to understand the many steps involved in the process. We have found that there are primarily two things that can derail a business transaction and those are TIME and SURPRISES. Our goal is to minimize both. We are dedicated to managing the sale of your business and all the tasks associated with that so that you can focus on running your business. The worst thing that could happen is that you spend so much of your time managing the transaction that you lose sight of what’s important which is operating your business and ensuring that sales are profitability are maintained.
3. Maximize Market Exposure
A key value we have been able to add for our clients is our ability to market your business to a broad spectrum of buyers, confidentially. Quite simply, the wider the net, the bigger the fish we can catch. One of our key differentiators is that we actively target strategic and financial buyers and just don’t rely on internet marketing. We have developed a database of thousands of buyers which we categorize by industry and size of business. We have developed relationships with private equity groups, search funds and strategic buyers.
4. Minimize Confidentiality Breaches
If it becomes known that a business is for sale, it can be destructive to the relationship the business has in place among its employees, customers or competitors. Weakened relationships can deteriorate a company’s position and thereby make it less valuable. In order to help maintain confidentially, we require that all buyers execute a non-disclosure agreement and buyer profile prior to releasing any confidential information about your business. Only a limited amount of information should be disclosed prior to determining if the potential buyer is either legitimate or capable of completing the transaction.
5. Comprehensive Marketing Program
This is one of the areas which sets us apart from our competitors. The KeyStone marketing program is designed to reach the maximum number of potential buyers without compromising your identity. The marketing program starts us creating an in-depth 10 to 20 page Confidential Business Review which provides an overview of the key aspects of your business including; description of the business and the industry it serves, history of your business, description of product and/or services, operational overview, roles and responsibilities of the management team and/or key employees, customer and market overview, summary of financial information and sustainability of earnings. Click here to learn more about how our marketing program can help you maximize the selling price and terms for your business.
6. Objectivity to Overcome Obstacles
Most of our clients are experts at running their business, however, very few have the required skillset and knowledge required to sell a business to achieve full value. Therefore, it would be impossible for them to now all the things that can come up between the time they receive an offer through closing. Keystone not only has the experience to effectively work through the obstacles that come up during the sale process, but we spend the time to do the upfront due diligence which is required to address potential “deal killers” before they come up.
7. Pre-Qualify Buyers
It is important to maintain confidentiality until the buyer has been identified and pre-screened to assess their financial and operational capability and that their intentions are genuine. The initial screening process is designed to confirm that the buyer is in a position to complete the purchase and is motivated to do so. After the buyer has executed a confidentiality agreement and buyer profile, we will provide the buyer with the Confidential Business Review, provide a company overview and answer any initial high level questions they may have.
8. Establish Creditability
Establishing credibility means delivering on your promises. Prospective buyers have come to expect that the information they request be provided in a timely manner and is an accurate. Sellers who try to represent themselves not only lack the experience to deal with the many obstacles that can come up during the process, they will likely find it difficult to present their business in a manner that buyers can fully understand or appreciate. Likely similar to your business, our business has been built by providing our clients with the best service possible and a solid reputation. Most of our business comes from referrals from past clients or professional advisors such as Accountants and Attorneys. If your goal is to maximize the total proceeds you receive from the sale of your business, please call us to see how we can offer an approach that will put more money in your pocket after paying our commission.
9. Upfront Due Diligence
When keystone was founded in 2004, it was built based on the philosophy that the extra time we spend on the front end to ensure that our clients business is presented honestly and in the best possible manner will ensure a smoother transition process and yield better results for all on the back end. This requires that we conduct upfront interviews with you to better understand your business, its key value drivers as well as its challenges. We conduct industry research and provide an opinion of value report for all our clients to ensure that the business is not over or underpriced. We work with you and/or your advisors to recast the last three years of financial statements to account for all discretionary expenses which could add profit to the bottom line which results in a greater value for your business. Lastly, we create a thorough marketing package to provide prospective buyers with a thorough overview of your business and allows us to make a good first impression with your business.
10. Make Deal Happen
This is what we do best! There is various data published in regards to the average closing rate for business sales. However, a common figure reported is that only 30% of all business which are marketed for sale actually close. We have maintained a closing rate of approximately 80% for all businesses we have represented over the last several years. We do not just take on any project. However, when we do enter into an agreement to represent our seller clients, we do what it takes to get the sale completed, the right way. KeyStone offers an approach to keep things moving forward in an orderly manner to ensure that sensitive information is protected, uncertainty is avoided and the best price is achieved.