What Is Most Important In Selling A Company?
The product we sell, your company, is high value with a complex sales cycle involving multiple decision-makers, gatekeepers, advisers, and influencers. When selling a company, professional sales expertise is a must. Sequoia M&A specialists are seasoned sales professionals with proven track records in strategic deal making.
1. Active Marketing
We actively market the value drivers of your company through a competitive sales process. Passive marketing yields sub-prime results. Mid-market businesses do not sell themselves. We have no interest in engagements where we cannot add value to the transaction. We embrace the challenge of proactively creating a unique, global market of buyers for your company that place a premium on its value.
2. Attention to Detail
What matters is closing. Closing demands attention to 100% of the details. Packaging your business, defining a market, qualifying buyers, anticipating problems, negotiating the best terms, defending value, managing deal momentum, mitigating emotion, and sweating the details. These are some of the skills we use to find the best buyer and guide the transaction across the finish line — to close the sale of your company.
3. Buyer Competition
Whenever you create competition for something you possess, the possession increases in value. Creating a market to foster buyer competition is the most effective way to maximize your company’s value and discover the most capable buyers in terms of:
- Valuation. In the presence of competing parties, buyers are motivated to raise their valuation to the highest end of their range for reasons that are as unique as their company strategies.
- Momentum. Nothing motivates buyers to keep the transaction on pace than the knowledge of competing parties.
- Terms. Cash at closing, vendor financing, capital structure, target working capital, transition support, exit timing, etc., are all influenced by competition more than anything.
- Cultural Fit. The presence of multiple competing buyers facilitates the seller’s ability to evaluate and select the buyer with the ideal cultural fit to succeed in the future.
- Equity Participation. Certain buyers would prefer that ownership rolls over and retains a minority equity interest in the company post-sale or that key management be afforded the opportunity to participate along side the purchaser. A well managed competitive process leads to the optimal determination of equity rollover and participation terms.
4. Preserving Confidentiality
Guarding the confidentiality of the sale process from suppliers, competitors, employees, and others is essential to preserving value. Yet, there is an apparent incongruity between the wide exposure of your company to a global market of strategic and private equity buyers and the absolute need to protect the confidentiality of it being for sale. Confidentiality is second nature to Sequoia’s professionals — it’s in our DNA. We understand it’s the lifeblood of sustaining a successful transaction. We know what information to disclose, when to disclose it, and to whom to disclose it, in order to preserve the confidentiality of the sale of your company. Furthermore, we coach our clients on responding to inquisitive parties, either internal or external, should our clients be unexpectedly confronted about a possible sale of the company.