Selling Process

     The CBI Business Group has developed a successful, personal approach to business sales, whether you seek a partial sale or a complete divestiture for your exit strategy. We have a thorough understanding of the selling process and the complex motivations that come into play. Our process is specifically designed to move expeditiously, maximize value and protect confidentiality without any interruption in the day-to-day business.

Our proven methods in this process

• Initial Meeting to Determine Objectives: Preliminary, no obligation meeting, where general information is exchanged for us to become acquainted with each other.  Options to decide include: sell and retire, sell and remain with the company, take on a partner, transfer ownership to family members or seek capital infusion to continue to grow the company.
  
• Examining Financial statements for company Valuation: A valuation is performed to determine a price range that can be expected in the marketplace. Establishing a fair market price helps you to understand the highest price, a fully informed buyer is willing to pay for your Company, and lets you avoid the risk of losing a timely sale by overpricing your Company, or leaving money on the table by undervaluing your business.


              Information needed:
•    Three years of up-to-date financial statements, including income statements, balance sheets and income tax returns.
•    A list of furniture, fixtures, equipment, inventory, trade names,
•     Patents and other assets to be transferred with the company
•     Real property and equipment leases or surveys and appraisal if real estate is to be sold with business,
•    Any contracts related to the operation of the business.
•     Other information which influences Company operations.

Engagement Letter: A contractual agreement is entered into between you and CBI Business Group, giving CBI Business Group the exclusive right to market the Company as your representative for a specified time period and under specified terms and conditions.

Preparation of a Confidential Business Review (CBR): With your input and approval, a unique campaign to market your business to potential Acquirers is created.  The basis for this information is to prepare a detailed CBR, which is a document that educates Acquirers about the operation, facility, marketing, financial status, and future opportunities of the business.  A national advertising campaign, using our extensive buyer database and search resources, is then implemented to confidentially target specific Acquirers, as well as to approach the general public.

 Identifying and Screening Buyers: Identifying the “right” acquirer for your business can significantly impact its valuation. Our business team works with each buyer by first having them sign a confidentially/Non Disclosure Agreement. We then determine if they are financially qualified to purchase the business and have the skills or background to grow the business to the next level. We also determine if they are a strategic buyer looking to expand their current portfolio.

Site Visit or meeting to discuss Business Operations: A first visit might be in our office or on site, if the operation permits. This provides the potential buyer with an opportunity to visit your facility, maybe even more than one time. It is also a time to help buyer and seller develop a favorable rapport.

Purchase Offers and Negotiations: CBI Business Group helps prepare a written offer to purchase in either a Letter of Intent or a formal Definitive Agreement which outlines the purchase price, terms, conditions and any contingencies. Working with our professional advisors, we maximize the value of your sale.

Due Diligence: This contingency allows the buyer and his/her professional advisors verify the accuracy of the seller’s financial and operational representations.

Closing: We coordinate with your advisors to oversee the preparation of closing documents. A formal closing takes place where legal documents are signed, funds are received and ownership is transferred, at which point you have realized your goal.

Transition Period: This typically involves a period of cooperation in which you will assist the acquirer in helping to bring about a smooth transition. This includes meeting with key relationships and teaching any proprietary information needed to successfully operate the business.