Selling A Business

All Your Hard Work Has Led to This—Time for the Harvest

You’ve dedicated years to your business and now it’s time to harvest the value you have created. However, there is more to the process than hanging out a ‘For Sale’ sign as if selling your home. Preparation is everything.

Valuation

Before placing the business on the market, you need a realistic, market-based valuation. Talking to a professional business intermediary like Jim is a good starting point as the process can be complex. Moreover, a third-party valuation will carry more weight with buyers than a valuation generated by the seller. Click here to learn more about how we can assist your business with its valuation.

Finding a Qualified Buyer

The right buyer is someone who has the capital and know-how to take your company to the next level. It can be difficult to find a well-qualified buyer when you want to keep your search confidential. Our team will assist with all aspects of finding appropriate potential buyers, and you can rest-assured that we will do it as discreetly as you require.

Once a qualified potential buyer has been sourced, we will also request a signed letter of intent that documents the proposed sale price, a payment schedule, terms, conditions, proposed financing, and other relevant details. This letter creates a basis for negotiations on a final sale agreement.

Carrying Out Due Diligence

The buyer will conduct due diligence before making a final commitment to buy your business.  Some refer to due diligence like a proctology exam!  We will help you work with the buyer to determine how the due diligence will be carried out, when proprietary information will be made available, and how to do it so that it isn’t disruptive to the daily operation of your business.

The due diligence period is usually 60 to 90-days long. It’s important for a variety of reasons to make this as short as possible, not the least of which is that you will be required to sign a “no shop” agreement meaning you will terminate discussions with other potential buyers until the defined period of due diligence has expired, or the deal is close, whichever comes first.

Negotiate a Sale Agreement

The next step in the process will be to negotiate the purchase agreements. We will coordinate this process with your attorney and work to make this a brief and affordable as possible, remembering that making sure you are legally protected before and after the sale as of paramount importance.

How Long Does It Take to Sell a Business?

The average amount of time it takes to sell a company is nine months, but averages can be deceiving.  The length of time it takes to sell a business depends on so factors, such as the nature and complexity of the business, the financing required and the overall state of the economy. Having said that, if a business is overpriced, it’s likely to never sell, at least until the price reaches the appropriate market level.

Work With Tennessee Valley Group

If you have decided that now is the right time to sell your business, you want experienced and trustworthy professional guidance to sell for the best price and on the best terms.

Tennessee Valley Group, INc. specializes in the brokerage and transfer of businesses with annual revenue of $2,000,000 to $30,000,000. We support with business owners in Nashville and throughout the state of Tennessee with the following services:

  • Confidential market-based valuations
  • Buyer identification
  • Price and terms negotiations
  • Closing on best terms with minimal tax implications.

How We Help

When you engage us, we start the process by evaluating your business to determine its fair market value.  Then we compile a comprehensive confidential marketing memorandum that provides prospective buyers with key company information, such as:

  • Financial history
  • Organization structure
  • Products and services offered
  • Markets served
  • Growth opportunities

This dedication to detail sets Tennessee Valley Group, Inc. apart from other business brokerage firms that rely on a one-size-fits-all template. Your business is unique, so we customize this memorandum to include all the information a qualified buyer needs to make a smart decision. It is our mission to educate both buyers and sellers about the present and future potential of a business opportunity.

Once the valuation is complete, we custom-build a plan to promote your business to financially qualified buyers. This strategy may include:

  • Targeted marketing
  • Direct mail
  • Consumer and/or trade advertising
  • Online listing service
  • Contact with our own database of individuals and companies that we know are interested in business acquisition.

Areas of Specialty

  • Technology: Technology-related transactions are not done on the basis of simple metrics but instead rely on a buyer’s strategic considerations of technology, customer fit, speed of innovation, and creativity.  The professional business brokers at the Tennessee Valley Group, Inc. understand these considerations.
  • Healthcare: Selling a healthcare service has its own set of unique factors.  Valuations eschew normal metrics, the pool of buyers is not always obvious and proving sustainable revenue streams is paramount.  We have helped physicians prepare for retirement through selling their healthcare practice, and we have helped bright young entrepreneurs take their healthcare-related technology to the next level.

Maintaining Confidentiality

We understand the importance of maintaining confidentiality throughout the sales process. WE will not disclose the identity of your company or share relevant confidential information about your without the prospective buyer first signing a Non-Disclosure Agreement.

Additional Support

  • We can assist interested buyers in arranging financing by leveraging our network of banking relationships. This includes traditional financing or SBA –guaranteed loans.
  • We will coordinate with the seller’s accountant and attorney to ensure that the closing is accomplished at a cost consistent with your tax and legal objectives.

If you are looking for a Tennessee business broker to help you buy or sell a business, contact us today at 615.390.9966 for a confidential consultation, or reach out directly through our website.