sell your business
Deciding to sell your private business is normally the single biggest decision that most entrepreneurs make during their entire lifetime. We can assist in three distinctive yet interrelated areas.
run a competitive process
PREPARE YOUR BUSINESS FOR TRANSITION
We maintain a strong relationship with a select group of Private Equity firms that are specifically interested in exploring opportunities in quality businesses that serve the agricultural, horticultural, green space and food industries.
Each PE firm has a long history of partnering and investing alongside management teams to build enduring businesses. Fundamental to their modis operandi, is the core belief that business value is created by operators, through disciplined strategy execution. Their objective is to help facilitate liquidity for current owners and/or facilitate accelerated growth.
Many founders/entrepreneurs of private companies have put all of their energy into their business and have a desire to see their business legacy survive beyond their ownership. Often they are simply looking for ways to take some "chips off the table" and continue to run the business. Selling to a competitor or another industry player can often result in the loss of brands, plant shutdowns, change of management, loss of jobs etc., as the industry buyer amalgamates or integrates the business. While this is a normal part of today’s business, it can still place a huge strain on the employees through the transition period. Selling to PE firm is normally much less disruptive, as they focus on further building of the company. An operationally focused PE firm will bring new business opportunities to staff and key management. It will bring continuity to your brands and your company.
When considering a sale of all or part of your business to a PE firm, the first question you need to ask yourself is, “what else besides capital do they bring to the table?” A modern, well-run PE firm can contribute a great deal to your company to make it bigger, better and a lot more profitable. The partners and key staff at a modern PE firm can often provide an outside viewpoint, experience and expertise in a wide array of areas.
You should also ask yourself, how could this business be run differently, if we had access to more capital? Who could you acquire? What projects could you invest in? What would you do to help the business reach its full potential? Once you have answered these questions you are ready to talk to a PE firm. Most are looking for aggressive growth targets and demand a high return on their investments, and these will be the first questions they will ask you.
For more information, please feel free to contact us for a no obligation, no pressure discussion on whether the PE option is right for your business.
We have an independent contractual relationship with SDR Ventures, a Denver-based investment bank with a stellar record of helping private business owners navigate the complex process of selling their business to the right buyer for maximum value. SDR can become your outsourced M&A department to accelerate your acquisition strategy, help you privately raise growth capital or assist in recapitalizing your business to fuel growth.
Engaging SDR’s sell-side advisory team is the last great investment you will make in your business because, by doing so, you are leveraging the collective strength of SDR's specialists and receiving the attention of an expert team of professionals. Allow SDR to bring its passion, skills, experience and commitment to help you achieve your goals.
Retaining SDR as your sell-side advisor brings the following important benefits:
SDR specializes in complex M&A transactions and sell-side advisory. The process is designed to identify the right buyer for your business.
Rewarding Your Efforts
SDR's goal is to make sure that the time and investment you have put into building your company is rewarded. SDR's competitive process involves identifying hundreds of potential buyers and narrowing down the field until you find the optimal buyer for your company.
Minimize Operational Distractions
You may be selling your company, but you still have a business to run. SDR's team helps manage and organize the hundreds of moving parts and overlapping processes involved, giving you the time and peace of mind to focus on your bottom line.
Complete a Transaction That’s Right for You
SDR has deep sell-side expertise, and can help guide you in completing a particular transaction that meets your specific objectives:
- Majority recapitalization
- 100% sale of the company
SDR can also assist with alternative liquidity options, including:
- Minority recapitalization
- Dividend recapitalization
- ESOP/Leveraged ESOP (Employee Stock Ownership Plan)
- Management buyout
Investment Banking and Securities Offered Through SDR Capital Markets, Inc., Member FINRA and SIPC.
Preparing your business for sale is likely the single most important step you need to consider when contemplating an ownership transition.
We can help walk you through the key items you need to focus on, or dig deeper through our management consulting services.
Items to consider:
- Review and update IT systems and software
- Have the business financials audited by a credible accounting firm
- Sell redundant assets such as underutilzed real estate or obselete inventory
- Develop and be able to clearly articulate your growth prospects
- Build/develop management team and succession plan
- Formalize and document business plan and strategy with well defined performance metrics. Outline specific objectives/initiatives and track progress
- Implement and document professional HR processes
◦ Incentive systems
◦ Defined roles with clear organizational structure
◦ Conduct regular performance reviews and document
◦ Update/review employment and non-compete agreements