Selling a business is daunting and time-consuming. As a matter of fact, most owners prepare themselves for months or even years of negotiating, valuing, and documenting before they finally seal a deal. What would happen if we said you can sell your business within 90 days? Yes, you heard it right. With an expert business broker’s help and meticulous preparation, you can do it, as demonstrated by one Alabama business owner.
Let us deconstruct how it occurred. The success story puts it into perspective that proper preparation, strategic marketing, and being in the right team are the keys to success. Having a clear strategy and using the experience of specialists like TNT Business Brokers, the business owner successfully sold the business within three months.
The Company: An HVAC Family-Owned Business
Let’s paint a picture. Consider an HVAC (heating, ventilation, and air conditioning) business established and family-owned in a mid-sized city in Alabama. The company enjoys a good local customer base, consistent sales, and a qualified staff. The business owner is willing to sell the business within the shortest time possible, preferably 90 days, because he is planning to retire. However, the procedure may not be easy; nevertheless, a well-planned strategy makes it possible.
Phase 1: Preparation (Days 1-30)
The initial stage is preparation. When you plan to sell your business in the short term, the real work begins long before it’s listed. The Alabama business owner understood this and quickly formed an effective team.
Building the Right Team
The owner contacted us because we specialize in the local market. We facilitated the complicated sale procedure. They also hired a certified public accountant (CPA) to manage the financials and a lawyer to take care of the legal side. This sale was off to a good start with such professionals on board.
Valuation and Financials
The CPA conducted a pre-sale valuation that included all financial records. The goal was to fix the business’s value and close financial gaps that might have repelled potential buyers. For example, consolidating expenses and enhancing the financials would make the financials more attractive. This is essential where the intention is to make a speedy sale.
Due Diligence Package
To further streamline the process, the team prepared an all-hazard due diligence package. This covered all a potential buyer would have required: financial statements, contracts, employee details, and customer lists. These documents were ready to be used later, saving the business owner time.
Ensuring that the Business is Attractive
The owner also worked to make the business as attractive as possible. This involved upgrading equipment, entering into long-term agreements with major customers, and recording standard operating procedures. The following advances proved that the business was capable of operating without the owner’s involvement in its daily activities—a fact that would attract any potential buyer.
Phase 2: Marketing and Finding a Buyer (Days 31-60)
The business was being prepared was time to get it on the market.
Targeted Marketing
First, we found a group of interested buyers. These were competitors, strategic buyers, and those seeking acquisition opportunities. Our experts focused on genuinely interested and financially capable buyers instead of casting a wide net.
We filtered its possible buyers to ensure that they had the money and the strategic intention to proceed. This move helped this business owner save time on unqualified potential buyers, and only serious buyers appeared at the table.
Negotiating Offers
Due to extensive preparation and focused marketing campaigns, the offers started coming in very fast. Our experts handled all negotiations, allowing the owner to focus on running the business smoothly. The less you can be in the weeds, the better, in such cases. Allow the professionals to handle the deal-making, and you are to make the business sale successful.
Phase 3: Closing the Deal (Days 61-90)
The last stage of the sale started when a good offer was received. Coordinating and acting fast is necessary to close the deal within 90 days.
Letter of Intent (LOI)
The closing process began with negotiating the non-binding Letter of Intent (LOI). The LOI presented the offered conditions of the sale, the cost of the purchase, and the main conditions. This move provided some clarity in both directions and became a basis for more detailed legal work.
Due Diligence Period
Once the buyers agreed upon the LOI, the team carried out its own due diligence. This was done by ensuring the information contained in the due diligence package of the owner was verified. The due diligence period was smooth and fast, as the business already had all these documents beforehand.
Agreements Legalities
After the team of the buyer had finalized its inspection, lawyers representing both parties had to take a very short time to conclude the legal deals of the purchase. The legal team was able to make the agreements immediately due to the well-organized pre-sale work, which had all the documents required to finalize the agreements.
Closing the Sale
Eventually, the deal was closed within 90 days. The money was changed, the business was sold, and the owner could retire successfully. It was an expeditious and effective process that made both parties content.
Consult Our Experts for a Quick Business Sale
TNT Business Brokers, LLC is a leading company that helps entrepreneurs buy or sell their private businesses and provides business valuations, mergers, and acquisitions. Feel free to contact our experts for any queries, buying or selling a business, or business valuation services. Gain maximum leverage from our experience and expertise.