Successfully Sell And Exit My Business Ownership

Retiring business owners, if you're looking to make a successful exit from the ownership of your business, it's important to be aware that only 2 out of 10 listed businesses in the United States will successfully get sold. That's a meager 20% success rate. However, this statistic can be improved with some well-thought-out preparation for sale and exit. To give yourself the best chance of selling and exiting your business in California, you'll need to groom the business ahead of time by getting it into shape for potential buyers.

At Rogerson Business Services, we specialize in helping retiring business owners like yourself through the journey of successfully selling and exiting their businesses. Our M&A Team will provide all the guidance and resources necessary to ensure you have a smooth transition as you go on to enjoy your life after sale. We understand that selling a business is not an easy process and varies depending on the industry you are in; that's why our services are tailored to meet each individual's needs, providing steps such as developing an effective sales strategy, managing customer relationships during the sale process, preparing financial and legal documents required by prospective buyers and much more. 

We put in place strategies to help maximize value so that when it comes time for a sale - whether it’s next month or two years from now - you’ll walk away with what your business is worth. Our goal is for every client to feel confident about their decision when making such an important move – after all, this will likely be one of the most significant events in your entire life! 

There is no need to feel overwhelmed or anxious about successfully selling and exiting your lower middle market business here in California - just reach out and fill out this assessment quiz today so we can start working towards achieving your goals!

If you are considering selling your commercial property with operating business in California, continue the journey by clicking here.

Here is a walkthrough of the steps we take with you till you sell and exit your business smoothly in California.

The First Step Starts With A Sell-Side Mandate

Now that you know how much your business is worth, it's time to get serious about successfully exiting and selling your venture.

A qualified M&A advisor can help guide you through the entire process, from searching for potential qualified buyers to finalizing the deal.

An M&A deal team should aim to achieve the best possible sale price for you – so don't be afraid to put forth aggressive valuations and assumptions.

The prospected qualified buyer in charge of due diligence will need to perform a thorough investigation of all relevant facts before finalizing the agreement - but with a reliable sell-side advisor at your side, navigating this phase should be relatively straightforward. 

Retiring business owners in California: If you're looking to transition away from your company and ensure that you get the highest return on investment, then now's the time to start taking important steps towards the successful sale and exit of your business.

You don't have to do it alone – get professional advice and support every step of the way so that you can rest easy knowing that everything is being handled with utmost confidentiality and care.

Get started down this path today and make sure you reap all the rewards of your hard work.

The Sell-Side Process Begins When Qualified Buyers Show Interest In Your Business

The second step of the sell-side process will either be if a qualified buyer comes to you or if you decide to take action and initiate the sale.

From here, there are four options you can choose from for selling your lower middle market business: a broad auction, limited auction, targeted auction, and exclusive negotiation. 

A broad auction is when your business is put up for sale with all potential buyers having access to information about it. With this type of sale, buyers will put in bids and offers that the seller can then review and negotiate before deciding on an offer they want to accept.

A limited auction limits the potential buyers who have access to information about your business. You would provide information only to pre-identified buyers that are likely interested in acquiring your business.

With a targeted auction, you target a specific group of potential buyers who are given information about your company and asked to submit offers or bids.

Lastly, an exclusive negotiation allows you to pick one buyer and use them as an exclusive channel for negotiating terms that both parties agree upon. 

Now it's time for you to get started on successfully selling and exiting your lower middle market business in California so that you can enjoy life after retirement as much as possible.

Don't let this opportunity pass by – get an experienced M&A advisor by your side today who will help guide and advise you every step of the way!

Preparing To Sell - Define A strategy

As a retiring business owner, you may be wondering what the next steps are to successfully sell and exit your lower middle market business in California.

The third step is to define your strategy. You will need to make several important decisions that will lay the foundation for the Mergers & Acquisitions (M&A) process.

These decisions include: deciding whether or not you want to sell, identifying potential buyers, creating a valuation framework, and setting a selling process and timeframe. 

It is essential that you educate yourself about the M&A process so that you can make informed choices when it comes time to sell your business.

That's why having an experienced deal team of advisors by your side can be extremely beneficial - they can provide guidance and advice on how best to maximize value throughout the entire process.

It's also important to understand any potential legal issues related to selling your business, so it would be wise to seek out the services of a qualified lawyer who is well-versed in dealing with such matters. 

Ultimately, successful M&A transactions involve both parties coming away with a mutually beneficial outcome - this means that their needs to be open communication between all parties involved as well as plenty of research on both sides of the table if things are going to go smoothly.

Once you have thoroughly investigated all options available, then it's time for you to begin actively searching for buyers who fit within your criteria and develop a timeline accordingly - this could range anywhere from one month up until six months or even longer depending on your individual needs and situation. 

When it comes down to it, deciding when and how to exit your lower middle market business in California can be a daunting task but having the right team of advisors by your side makes all the difference - get started today with successfully selling and exiting yours for maximum return!

Marketing The Deal - Getting Ready

As business owner in California and looking to successfully sell and exit your lower middle market business, the next step is taking the necessary preparations to ensure the M&A process runs smoothly.

This includes preparing non-disclosure agreements, creating a confidential information memorandum (CIM) that outlines all relevant aspects of your business, organizing extensive financial records, and preparing projections of income that potential buyers can examine. 

Organizing these documents can be time-consuming; however, it's essential for a successful sale.

Without accurate records, both parties may lack trust in each other or there may be confusion about the value of the company.

Put together financials that show profitability over several years and market research on comparable businesses that have sold recently. Doing so can help show potential buyers why your company is valuable and why it's worth what you're asking for it. 

Finally, be sure to take into consideration how long you are willing to wait for a buyer.

Depending on the size of your business and its location, some sales could take months while others could take upwards of two years or more.

The more prepared you are when beginning this process, the faster and smoother it will go — plus you'll have peace of mind knowing that everything has been taken care of properly. So don't delay any longer — start today on successfully selling and exiting your lower middle market business in California!

Marketing The M&A Deal

Getting Ready

This step includes taking the necessary preparations to allow the M&A process to run smoothly.

• Prepare non-disclosure agreements
• Create a confidential information memorandum (CIM)
• Organize finances
• Create projections of income to show potential buyers

Round 1

4-6 weeks.

The first round is where the M&A process begins in earnest. Several steps should be accomplished during this time.

• Non-disclosure agreements exchanged
• CIM distributed to potential buyers
• Receive initial bids

It’s vital to note that while initial bids are non-binding, they can gauge a potential buyer’s interest.

Round 2

4-6 weeks.

Round 2 is when the seller will meet with interested buyers. Several things should occur during this time.

• Hold meetings with interested buyers
• Draft a definitive agreement
• Prepare a data room to facilitate due diligence
• Receive final bids from the buyers

Negotiations

4-6 weeks.

Negotiation is the final portion of the M&A process and the last step in selling a company. During this time, there are things to be finalized. 

• Send the definitive agreement to buyers
• Enter an exclusivity agreement with a single buyer
• Present the buyer's terms to the board
• Receive board approval
• Sign the definitive agreement

Once the definitive agreement is signed, the M&A process is complete. 

How To Get Started

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