CRITICAL SUCCESS FACTORS
What Matters is Closing
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.
Accounting standards like ASPE, IFRS, or GAAP do not value brand equity, company longevity, geographical market access, or a blue chip customer base yet these and other factors have significant value to buyers. A buyer’s ability to understand the value drivers in your company and their motivation to make an offer at the upper end of their value continuum is directly related to the process by which your company is marketed and sold to them.
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 that 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.
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 momentum, mitigating emotion, sweating the details; these are some of the skills Sequoia Mergers & Acquisitions uses to find the best buyer and guide the transaction across the finish line; to close the sale of your business.
Buyer Competition Drive Results
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 to discover the most capable buyers in terms of:
A company is worth what a buyer is willing to pay. All buyers have a range of value they would be willing to pay and in the absence of competition are predisposed to offer at the lowest end of their value continuum. However, 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.
Nothing motivates buyers to keep the transaction on pace than the knowledge of competing parties.
Cash at closing, vendor financing, target working capital, holdbacks, transition support, exit timing, warranties, etc., are all influenced by competition more than anything.
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.
Exposing your business to as many qualified buyers as possible dramatically increases our negotiating leverage in the sale of your business. It is the most critical factor in selling your business promptly for the highest price on the best terms.
Guarding confidentiality of the company sale process from suppliers, competitors, employees, and others is essential to preserving value of privately owned, mid-market companies. 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, to preserve the confidentiality of the sale of your company. We are proud that we have not caused a single confidentiality breach in any of the transactions we have executed. 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.