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How We Sell a Business
Note: This article is geared towards our process with smaller (sub-$10m revenue) businesses. Our process is significantly more sophisticated for larger companies. Contact a CRA professional for details.
Step One: Decide to Sell!
Each owner must come to grips with thought of selling their business. In many cases owners have a personal attachment to their business. Once you decide to sell your company though, CRA can step in and help you through the process.
Step Two: How much is your business worth?
When you sell a house, your agent will likely compare your house to others in the neighborhood, “comping” it to other recent, similar sales. We will do the same thing for your business. CRA helps you look at similar businesses, compare them to yours, and determine a fair market price. As a quick rule of thumb, your business is typically worth 2-3 times your profits in the business.

Step Three: List with CRB
Just like selling a house, CRA will sign a listing agreement with you giving us the right to market your business and detailing the terms of our involvement.

Step Four: Market the Business

CRA undertakes a comprehensive plan to market your business. Our goal is to gain wide exposure to your sale. Just like anything, the more people that view your business and the more competition we generate, the better off you are.

A note on privacy:
We initially market your business “blind” – not giving our your name or location. This helps to keep your sale quiet. Further, CRA always signs a Non-Disclosure agreement with prospective sellers to prevent disclosure of your business information.

 

Step Five: Negotiate with Potential Buyers

CRA will work to solicit multiple offers from business buyers. We will then attempt to negotiate the most favorable terms on your behalf. Once you are satisfied, you will accept the offer.

Step Six: Due Diligence / Buyer Verification

During this period- once you have accepted an offer- the buyer will want to “check under the hood” of your business. They may want to review tax returns, or come to your business to observe for some period of time. This is perfectly normal and will happen in over 90% of sales.

Step Seven: Closing
Just like a house, once ready both parties will go to a closing. It is at this point that you “hand the keys over” to the new buyer, money is transferred, and your business is sold.