Duran Advisors understands that for most business owners the process of selling a business can be an emotional roller-coaster. Our 4-step process is purpose built to generate results while being methodical at maximizing value. To get more information or book an initial consultation, call our office or use the scheduling link in our header.
Step 1: Research
Duran Advisors begins each engagement with a sit down face-to-face meeting at the business. With that being said, confidentiality is the highest priority. It is common that this initial meeting must take place at the business after hours. A member of the deal making team will take a tour of the premises and speak with the owner about their objectives for the engagement. They will then make recommendations based on their findings. In order to get the most out of this first meeting, it is recommended that sellers should consider bringing the documentation listed below. By having these documents on hand, the advisor will be able to give specific answers instead of generic ones.
After the meeting, the advisor will continue to gather all the business information that is necessary to begin the agreed upon engagement. The advisor will help to facilitate document production and will be the contact for the brokerage. Principle Business Advisors analyst will pull relevant industry information, sales comparable data, market data, and anything else that may be necessary to prepare for the engagement.
Step 2: Prepare
The next step in the process starts the actual engagement agreed upon by the client and the advisor. This can take many forms since every business is unique. It is standard across most engagements to perform a valuation to determine business and/or property value.
Upon completion of the valuation, the advisor will meet with the client to go over their findings. This can take place in person, over the phone or via zoom. Based on findings, a determination will be made to improve or sell the business. For exit planning engagements or if the business is to be improved, it will continue in the prepare phase until it is ready to take to market.
Step 3: Market
The third step in the process begins by signing a formal engagement agreement. Duran Advisors will then create and execute the marketing package. The marketing program will vary based on the plan for the business, but this is the time that potential buyers will be identified (if they have not been already), marketing materials generated, and the formal marketing process will begin. If the business has a local physical location, it will be scanned with the 3D camera and a model will be created. Duran Advisors utilizes traditional marketing such as telephone, websites, direct mail, email, and industry relationships. However, Duran Advisors also uses more modern approaches, for example, direct key word campaigns, social media, video production, paid ads, and several other proprietary marketing techniques.
As buyers are contacted, they will be required to fill out a confidentiality form as well as a financial statement. The advisor will prescreen them for financial capability during the initial meeting. They will be informed of the business, given the business package, as well as the Matterport 3D scan to review. If they would like to move forward, then a meeting with the business owner will be scheduled. This “Buyer/Seller” meeting is the business owner’s first involvement in the process. The buyer should leave this meeting with all the information they need to decide on making an offer.
Step 4: Close
Once an offer is accepted, due diligence begins. Duran Advisors’ process is structured to create high trust and seller credibility to make due diligence as smooth as possible. The advisor will guide the seller and facilitate due diligence for the buyer. When closing appears definite, the seller’s advisor will contact the agreed upon closing attorney to draft the closing documents. A walk through of the business will take place directly before closing and then the buyer and seller will meet at the closing attorney’s office. Once the documents are signed, the seller will be issued their check. The buyer and seller will usually go directly to the business to begin the transition process.
Documents Needed To Sell A Business
- 3 Years Profit and loss/Year to Date Profit and Loss statements
- 3 Years Tax Returns
- 3 Years Balance Sheets/Current Balance Sheet
- Itemized list of all furniture, fixtures, and equipment (FF&E)
- Value of inventory
- The legal description of the real estate and any legal maps or plats or recently dated appraisals or if leasing space, copy of the lease
Top Five Mistakes Owners Make When Selling Their Business
Duran Advisors founder, Joel F. Duran, talks about the 5 most common mistakes that business owners make when trying to sell their business on their own. Joel has been a practicing Exit Planner and M&A advisor for more than a decade and has successfully sold over 100 businesses for clients. He is a Certified Mergers and Acquisitions Advisor (CM&AA), Certified Mergers and Acquisitions Professional (CM&AP), Certified Exit Planning Advisor (CEPA), and a Certified Main Street Business Broker (CMSBB). If you would like to speak confidentially with him or one of our other professional exit planning advisors, please click here.
Best in Class Business Sale Process
Certified Exit Planning
Let our team of Certified Exit Planning Advisors (CEPA) help you to prepare your company for sale
Our experts will value your business using multiple techniques to insure the highest possible selling price
Clear Sale Process
Sellers can log in to our system 24 hours a day 7 days a week and see leads in real time with the buyer's status
3-D Virtual Reality Tours
Virtual Reality scans of listings to allow all buyers to review the business without intrusion
Full In-House Media Team
Our in-house Audio/Video production staff will put your business in the best light possible