Step 2 - Prepare: Maximize Your Price. Build Credibility. Reduce Your Risk.
At Morgan & Westfield, we know that preparation determines success. That is why the preparation in Step 2 is so thorough. You receive unbiased, professional guidance to help ensure the remainder of the sales process unfolds as smoothly as possible.
Preparing your business for sale involves in-depth compilation of critical documents before we actively begin our strategic marketing process. We create clear, consistent documentation that establishes strong credibility with buyers. This proprietary package of offering materials we produce for your business forms the centerpiece of your transaction. These documents are released to buyers in measured stages during Step 3 of our process after buyers have signed a non-disclosure agreement (NDA).
This crucial step highlights the most attractive details of your business to buyers and positions your business in the best light possible to maximize your purchase price. Our preparation is thorough yet streamlined to minimize demands on your time.
Step 2 generally takes four to five weeks to prepare your business for sale before we begin the confidential marketing process (Step 3).
Confidential Information Memorandum
The Confidential Information Memorandum (CIM) is a detailed 20 to 30-page report designed to position your business in the best light to potential buyers to command a premium value. We use data collected during our Assessment of your business to create a CIM. The CIM captures key acquisition benefits and competitive advantages of your business, and why your company may make a valuable acquisition. The CIM contains most of the facts buyers need to understand your business, see its value, and prepare an offer. It is made available to buyers only after an NDA is signed. It’s one of the first documents a buyer will see on your company and ensures we make the best first impression possible.
The CIM:
- Anticipates the most common questions buyers will ask and provides answers to those questions in a professionally prepared document to expedite the sales process
- Details all major aspects of your business, such as: investment highlights; industry overview; company overview; financial overview; product/service description; sales and marketing; customers; operations; facilities; location; staff; transition; improvement potential, and assets
Teaser Profile
A Teaser Profile is a 3 to 7-page abstracted version of your CIM used in direct marketing campaigns when our marketing strategy includes approaching competitors. A Teaser Profile allows us to maintain confidentiality while marketing your business to direct competitors and allows us to more fully qualify buyers before they receive a copy of your complete CIM.
The Teaser Profile reveals enough information to inspire buyers to reach out for the full CIM without revealing the identity of your business. After viewing the Teaser Profile, a buyer must sign an NDA to receive a copy of the CIM.
Telephone Interview
Captivate Buyers with your Story
The Telephone Interview is a 30- to 60-minute recorded interview we share with buyers after they have signed an NDA. Buyers want to hear the story behind the business but the logistics and time constraints of having a conversation with every potential buyer are daunting. Our solution is a professionally recorded discussion in which we arrange for you to talk with our expert interviewer on the phone so you can tell your story. This lets buyers hear your passion and enthusiasm while you save time by telling your story once rather than dozens of times. The Telephone Interview fosters a connection between you and the buyer by offering a personal account of your business’s history, operations, and highlights. We provide a studio-quality, edited version of these talking points to buyers, via a link included in the CIM.
Listen to an excerpt of a sample Telephone Interview
Financing Pre-Qualification
Save Time | Save Money | Increase Your Chances of a Sale
Morgan & Westfield objectively evaluates your company’s chances of obtaining financing as a component of the overall transaction structure. Investing time early in your sales process to assess the availability of financing for your business saves time when marketing your business and negotiating with buyers. We work with a team of objective and unbiased advisors, with access to hundreds of lenders, giving you information upfront about financing options that buyers may have available to purchase your business.
Advantages of Pre-Qualification:
- Generates more interest from buyers
- Attracts higher-quality buyers
- Improves buyer confidence
- Streamlines the negotiating process
Financial Assessment
Eliminate Surprises that Can Derail Your Sale
Once you accept an offer, the buyer will conduct due diligence to assess your business’s financial health. If the buyer discovers something questionable, it could doom a sale. Buyers become wary if they perceive problems, so it’s best to identify and fix issues, if any, in advance. After spending months finding a buyer, losing them over something that could have been corrected from the outset is a waste of valuable time, money, and resources.
During the Financial Assessment, we review your financials and gauge any potential obstacles or questions that may arise, then prepare a report and make recommendations to improve the quality and consistency of your financial statements. This allows you to resolve issues before the buyer sees them, prevents problems during due diligence, and increases the chances of a successful sale.
Advantages of Conducting Pre-Sale Financial Due Diligence:
- Helps accelerate the sales process
- Minimizes contingent payments, such as holdbacks and earnouts
- Helps eliminate surprises and resulting delays during the sales process
- Provides you with an opportunity to address problems early, allowing you to potentially increase the purchase price due to lower perceived risk
