Seller Process

When you retain The Cypher Group as your business broker, we will provide you with a clear and concise agreement. This agreement will address a number of issues, including but not limited to, fees, exclusive representation, confidentiality, and a flow chart of the process.

Common Questions That Sellers Have:

  • Before I sell my business, how do I determine its worth?
  • What kind of financial information do I need to provide when I sell my business?
  • How do I ensure confidentiality when I sell my business?
  • If I want to sell my business, what is the most effective way to find qualified buyers?
  • What kind of financing is available to potential buyers?
  • How do I deal with “off the books” transactions when I sell my business?
  • How do I screen buyers?
  • Will I have to carry a note when I sell my business?

Analyze and Prepare Operations – As a first step in the sales process, we encourage all clients to critically evaluate their business operations, identify opportunities for short and long-term improvements, as well as, competitive challenges that will be of interest to prospective buyers.

Obtain Independent Valuation – We strongly recommend that clients obtain an independent valuation of the business being offered for sale. We will gladly recommend one or more experienced, qualified valuation firms for your consideration.

Coordinate Drafting of Offering Memorandum – We will assist you and your management team with the preparation of an effective offering memorandum. Company management is responsible for the preparation and presentation of all information included in the Memorandum, however, we can provide you with a recommended format for the Memorandum and suggestions on content.

Developing a Marketing Plan – In conjunction with the preparation of the Offering Memorandum, our engagement team will work with your management team to formulate a marketing plan, including defining the marketing process and establishing time lines. The marketing plan will be customized to fit your company’s particular circumstances.

Identify and Contact Prospective Buyers – Depending upon the nature, size and value of your business, the  pool of buyers could be competitors, private equity groups, foreign companies or local, in-market investors.  Prospective buyers who express interest will be required to sign a Non-Disclosure Agreement prior to receiving any information about your business.

Facilitate Buyers’ Due Diligence – A limited number of prospective buyers will be given the opportunity to visit your facilities and conduct on-site due diligence. This process typically entails meeting with designated members of management, reviewing selected financial information and gathering other relevant information.

Assist Clients and the Clients’ Professional Advisers with Evaluation of Offers – The goal for any transaction should be to maximize the sellers’ after-tax sales proceeds. Accordingly, we encourage clients to involve their attorneys and CPA’s in the process as soon as it is reasonably possible so that tax planning strategies and other important transaction structuring issues can be thoroughly considered and addressed before proceeding in negotiations with prospective buyers.

Assist Clients’ Professional Advisers with Documentation of Preparation – The sellers’ or buyers’ attorneys will be responsible for the drafting and negotiation of the sales agreement and related documents.
We will facilitate a timely closing and assist with post-closing issues.  We will work with the transaction teams (management. attorneys, CPAs) to resolve any open issues and consummate the transaction in a timely fashion.