Sale Process

Pioneer Capital’s goal is to manage the sale process of your business from start to finish in a timely, efficient and professional manner. While it’s never certain that a sale transaction will close, in our experience, following a clearly defined process increases the chances of success and yields the best results. The key stages to our process are as follows:

Identify Goals
The first step is to identify the seller’s goals as they relate to the sale of the business, which often involve much more than just maximizing the purchase price. Other key goals often include securing a rental stream for owned real estate, selling owned real estate, ensuring employee and or customer continuity or securing an ongoing role for the owner or owner’s family member with the buyer.

Identify Buyers
We will create a list of potential buyers for the business based on our understanding of each buyers’ wants and needs. We discuss this list with our client to get their feedback on each of the potential buyers. In some cases, the seller may choose to exclude certain buyers or include other potential buyers in the process.

Develop Market Approach
Knowing each buyer’s objectives allows us to determine the best and most efficient approach to market. In almost all instances, an “auction” approach will yield the best results; however, in certain cases, a more targeted approach to certain individual buyers may be better.

Gather and Analyze Data
We will provide all sellers with a comprehensive information request list. Our goal is to understand and analyze the details of our client’s business, including all financial, operational and commercial aspects. A better understanding of the business helps us determine how best to position the business for sale in order to make it most attractive to buyers. This process also helps us determine a likely valuation range.

Marketing, Bid Solicitation & Negotiation
Based on the company data provided, we will prepare a confidential information memorandum which includes a detailed overview of the business and provides potential buyers with sufficient information to prepare an initial bid for the business. Once the information memorandum has been finalized, we approach all potential buyers, execute confidentiality agreements and then distribute the information memorandum to potential buyers. Buyers are asked to provide their bids in Letter of Intent (LOI) form by a set deadline. Each buyer’s LOI will generally include the offer price, the terms of the offer and each buyer’s business and funding credentials. Following the receipt of all LOIs we evaluate and rank each buyer’s bid, review bids with the owners and discuss next steps as they relate to negotiating final terms of the LOI. After the seller’s acceptance of an LOI, a period of exclusive dealing and due diligence usually starts with a buyer, which generally continues until the deal is closed.

Due Diligence & Legal Document Review
During due diligence the buyer requests more detail about the business in order to verify and understand all financial, operational, tax, legal and other aspects of the business. Our goal is to manage the due diligence process in the most efficient way possible so that it is completed in a timely manner and doesn’t tie up too many company resources. During the due diligence period the necessary legal documents are also created. As the purchase agreement and other legal documents are drafted we will also help the seller review and finalize key business terms together with the seller's attorney.

This is the final stage of the sale process. After all legal documents are signed and conditions to close are met, funds are wired to the owners and ownership of the business officially passes from the seller to the buyer.

As you can see, the process of selling a business can be complex and time consuming. If it is not managed properly, the process can add additional and unnecessary stress for the owner and the employees who are trying to run the business. With the team at Pioneer Capital on your side, we can take much of the stress off an owner’s shoulders and increase the chances of a successful outcome for owners and all other constituents, including employees and customers.