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 business, 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 business and their willingness to make an offer at the upper end of their value continuum is directly related to the process by which your company is 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 business 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 deal 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 is the Most Important Factor

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 in terms of:

Price

Many things affect price, but none as great as creating a market of competing buyers.

Speed

Nothing motivates buyers to get the deal done faster than knowledge of competing offers.

Terms

Cash at closing, vendor financing, target working capital, holdbacks, transition support, exit timing, warranties, etc., are all influenced by competition more than anything.

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.

Preserving Confidentiality

Guarding the confidentiality of the business being for sale 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 business to a global market of strategic buyers and the absolute need to protect the confidentiality of it being for sale. Sequoia’s professionals have confidentiality in our DNA; we understand it is 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 questioned about the possibility of a future sale of the business.