M&A – Sell or Merge2021-11-12T08:11:35-08:00
Mergers and Acquisitions

Sell-Side Advisory

The Exit

Selling your business.

Here at Destined, our passion is working with businesses as they transform from small enterprises to industry superstars. We not only root for them, but also support and nurture them along the way. We understand what it takes for a business to succeed at every stage of their growth journey.

And as with all great endeavors, this one ideally ends with either a merging of like-minded professionals poised to achieve further success, or in a curtain call, where founders step aside and allow their business to become their legacy.

It’s this latter stage of the journey we want to talk about, an entrepreneur’s swansong – the sale of your business.  As with every journey worth its salt, this one comes with a vital strategic element. Let’s delve into that element and how Destined’s team guides the exit process so you can reach your destiny.

The Exit Strategy

Start planning now so you are ready when it’s the right time to exit.

Selling your business isn’t only a sound financial decision – it’s also one that opens your promising, ambitious brainchild to the new skills, customers, products, channels and markets that will ensure its continued growth and success.

What

An exit strategy is a plan a business owner uses to outline the transition of ownership from them to a potential buyer.

Dependent upon an owner’s goals, an exit strategy will include one of several ownership transitions options.  You can sell your business to another business via a strategic acquisition, merge with a likeminded organization, sell to a financial investor with funds to scale your business, execute a family or management team buy-out, or implement an ESOP to reward all employees with ownership. As your exit planning advisor, Destined is here to clarify your vision for the future, determine the best exit strategy, develop a roadmap outlining your ownership transition goals, and tell your story to find the right buyer to help you reach your destiny.

Why

Many business owners begin the exit planning process when they are considering an exit. But waiting until you are ready to sell is short-sighted.

We get that exiting planning may not be a priority, but when it comes to one of the biggest decisions of your life – determining the best future for you and your business – preparation will provide more exit options and often a higher valuation.

Building an exit strategy now is essential because it helps guide your business journey toward your future vision. Most importantly, should an exit opportunity arise in the meantime, you can take advantage of it knowing the specific outcome you desire. Developing an exit plan helps you specify the financial goals you want to achieve when you transition ownership and therefore helps you identify the right time to sell.

How To

As your business exit advisors, we’ll counsel you on how to look ahead to a potential exit that’s healthy and profitable.

Throughout the process of telling your story, researching suitors, performing due diligence, guiding the transition for new leadership, employees, clients and stakeholders we’ll be your trusted partner ushering your business into its next growth phase. We’ll be there to celebrate a successful transition and savor the moment your business begins a new journey.

What is the role of a sell-side M&A advisor?

As your sell-side advisor, we can see as clearly as you how bright your business shines. Additionally, we bring an understanding of how potential buyers will evaluate your business and identify red flags. We also see its potential to become a supernova and will guide you through the emotional process of letting go.

Explore the steps we’ll take to help you prepare for a sale.

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Frequently Asked Questions

A quick sell-side services recap.

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What is sell-side M&A?

Sell-side M&A deals with a seller’s perspective of a business acquisition transaction.

There are a variety of reasons why a business owner becomes a “seller”, a few examples include: the cashing-out of net worth invested into an organization, growing an organization through absorption into another organization, or even a transition to new markets by merging with a competitor.

What is the sell-side process?

The sell-side process can begin with a hopeful buyer approaching an owner, or when a business owner decides to sell and engages an M&A advisor such as Destined.

If it’s the latter, the advisor may go about finding the right buyer by marketing via a broad auction open to most acquisition parties, targeting select buyers for an auction, or negotiating privately with acquirers that fit the ideal acquirer profile.

What are the sell-side M&A phases?

When your business is taken to market the sell-side M&A process can be divided into multiple phases:

Buyer Identification and Engagement

The first phase includes identifying buyers who fit your ideal acquirer profile and exploring their interest in the opportunity. Once both sides agree it could be a good fit, preliminary discussions can start.

Preliminary Diligence, Valuation, and Indication of Interest

In the second phase a valuation of your business is provided within an ‘information memorandum’ (IM), allowing the prospective buyer to formally submit an ‘indication of interest’ (IOI) letter.  Destined, your sell side M&A advisory team, will conduct due diligence of the acquirer, including analyzing financial statements and legal documents.

Further Diligence and Letter of Intent

While we evaluate your potential buyer’s interest, additional diligence may be conducted at their request. Should you accept the interest and agree to a sale, a ‘letter of intent’ (LOI) is issued to you by the buyer, so negotiations can begin.

Final Diligence, Negotiations, and Completion of the Transaction

As your M&A sell-side advisor we will manage final diligence with the buyer to ensure a smooth closing. Once financing is secured, we will conduct any last-minute negotiations as needed, and finalize the sale terms.

Not Ready to Sell?

Even if you’re not ready to exit, the Destined team can help you plan for the future so you’ll be ready  when the time is right.

It all begins with the development of a sound exit strategy – from realizing the worth of your company, to building the story of your strategic assets and intellectual property.

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