Owning a business and selling one are different experiences, requiring completely different skill-sets.

You know your business, we know how to sell it. Our proven process simplifies the long and complicated selling experience, and typically brings multiple buyers to the table allowing you to maximize value.

Selling a business takes planning, strategy, goals, knowledge, and a proven track record.

Don’t wait to think about selling your business when you’re facing one of the five dismal Ds.

Death-Planning ahead can make this emotional event easier for your family, your business partners, and employees.

• Plan for business life after death
• Will your business survive your death?
• 5 things can affect the value of your business
• Key man risk, one seller’s cautionary tale

Divorce-When building a business, like a marriage, you’re in it for the long haul. There are times when it’s best to cut your losses. Some sales feel like a divorce. Planning ahead can have you on a straight path.

• Selling felt like a divorce
• Reasons deals don’t close

Disability-Not being able to run your business can be hard. It’s even more difficult to sell if you’re dealing with a disability which stops you from overseeing day-to-day business activities.

• Make a plan, Stan.

Disagreement-Not all partnerships can handle the stress of running a business. When it’s time to sell and split from your business partner, we can help navigate a “shotgun clause.”

• Shotgun shells break up a business

Departure-You started it; you built it to be a successful business, now you’re ready to retire in comfort. We can help you navigate the selling process to depart on your terms.

• Ensuring confidentiality during the M&A process
• Planning now to sell later
• No lending collateral 

Succession planning-Not all adult children want to take over the family business. However, there are times when selling to the family is the best decision.

• Succession planning-start from day one
• Succession planning
• Let’s load those dice

Helping you sell your business.

Whatever your reason for selling, you don’t want to go it alone. Trusting a company with a proven sales process and 70-80% closing ratio is your secret to a successful closing.

• Tried to sell himself
• Do it yourself and lose 30%

There are Five types of sales-giving you multiple options when you decide to sell.

100% sale and transition out-

• Plan a transition period
• Know the buyer

100% sale and multi-year employment contract-

• How to work with buyers after you sell your company
• M&A news-Sell and work with the buyer

Leverage recap: sell majority (typically 60-80%) and roll over equity with a new partner; the goal is to sell again in the next 5-7 years.

• Majority-minority you can sell either way
• The business wisdom of King Solomon
• Liquidity: Minority Recap
• Seller may earn back a bonus to stay

Sell to the management team or partnering management team with a PE firm to maximize cash at close.

• Positioning your business for private equity
• Private equity looks smaller
• Vet private equity before you sell-Private equity groups and recapitalization
• Business exit strategy-Build with the buyer in mind

Help transition to the next generation of family

• Family businesses struggle with these tough questions
• Pros and cons of selling to family
• One family business heeds investment banker’s advice

Whatever type of sale you wish to pursue, you’ll want to make sure you’re getting the most out of your business as possible.

Through our Value Enhancement? process we can guide you so you’re not leaving money on the table at closing.

VALUE ENHANCEMENT PROCESS

1. We will educate you on the value drivers for your specific industry
2. We will show you where you exceed industry benchmarks and where your business will appear weak to a buyer
3. We will identify the low hanging fruit that will help you drive significant value in the shortest period of time

• Time to build oft forgotten assets
• Build your company’s value
• Business valuation adds value beyond revenues
• Customer concentration and its effect on business value

At Cornerstone Business Services, we pride ourselves on Honest Conversations and Superior Results.

Sales don’t happen overnight. Planning well in advance of actually wanting to sell can be in your best interest.

• Plan on your goal, not your age
• Be ready when you’re ready
• Think “want” not “whatever” when it comes to a business sale

Our Mission to create positive life-changing events for all the lives we touch. The mission is foundational in our sales-approach.

Estimate of Value–To properly sell any company, you need to know the estimated value. Our valuation process goes through 10 steps to determine the best selling price for your business. We’ll answer any questions you have to help you make the best decisions.

• Business value unknown

Proposal-We’ll present our go-to-market process and how to move forward with Cornerstone. If you’re ready to proceed, we collaborate with you and utilize your feedback to determine what needs to be done to meet your goals.

CIM/Buyer Research-We prepare a confidential information memorandum to explain the selling company’s historical financials and projections, products, or service lines and strategy. The CIM provides the buyer’s with a framework to start their pre-due diligence.

During the process of helping you sell your business. When buyers come to the table, we do an extensive job of vetting them before bringing them to our seller.

Not every buyer will be a great fit for our seller’s goals. We help them weed through the tire kickers so they can focus only on serious offers that fit their needs.

• What to expect when a buyer comes calling
• Unsolicited buyer
• It’s wise to know your buyer type

Marketing-The offering memorandum (OM) outlines a company’s history, market position, investment highlights, and growth opportunities. Our philosophy is that the OM should answer 85-90% of a buyer’s questions.

• When selling a business, marketing matters
• You’re in control
• How long will it take to sell your business
• Sell a business in 8 to 9 months plus
• No budging? Business sellers wait in line

Negotiation-The most visible part of the process is when the advisor puts the company on the market. They will choose the route that optimizes chances for success. That often involves a process of contacting, vetting, and negotiating with potential buyers.

• When selling, know what the sale includes
• Sellers value time over money in some buyer negotiations
• 8 strategies to a successful M&A negotiation
• What you need to know about a Letter of Intent
• Unsolicited offer? Get a boxing coach

Due Diligence-Sellers are bringing in a pre-due diligence team before they go to market. It’s like getting an inspection on your house before you sell, only more intense. You and your advisors are viewing your business through an objective lens, looking for any concerns that could lower your value or sidetrack a potential sale.

• Looking beyond financial due diligence
• Market trending to pre-due diligence
• 7 due diligence fundamentals you must know
• Selling your business
• Scary surprises can ruin a sale

Closing the Sale-What we found works best is to sit down and lay out what all parties have to get done and then work from a timeline that everyone thinks is achievable.  This should include specific benchmarks for drafts and reviews.  Your M&A advisor’s role is to expedite information and hold people accountable.

• Closing a business sale
• Multiple offers bring a good night’s rest

The Cornerstone Principles

Relationship-Our employees are the key to success. When our employees feel truly valued, and they understand and believe in the mission and company vision. They are happy and engaged with our clients. We can then serve our clients wants and needs with the highest levels of customer service, trust, and mutual respect. Employees are the key to helping you sell your business.

• How I’m learning to put employees first
• Seller/Advisor relationship-creating a transformation
• Do you need an investment banker? 

Passion-Many people say that, but we live it. Helping clients with estimates of value, working through the process of buying and selling a business is our top priority. What we do matters to our clients, their livelihood, their families and their employees’ families. Through honest and ethical collaboration, we work hard for our clients.

• Know what you need
• 3 mistakes you can prevent when selling a business

Respect-Every business has its story. How it was built, how it became successful and the goals owners have in buying or selling. As Investment Bankers, our job is to keep an open mind and recognize that everyone has something to contribute to the process. By being thoughtful, transparent, honest and dedicated to our clients and employees, we respect their wants and needs and look out for our client’s best interests.

• Take timing into advisement
• 4 interview questions to ask an investment banker

Focus-It takes focus to create accurate estimates of value, and provide our clients with information essential to a sale. We are committed to doing the right thing each time. By keeping commitments to our clients and delivering our services on time, allows us to focus on the deal process. This focus allows us to help you sell your business.

• Having difficult conversations
• Buyers want talent
• The new middle market-M&A advisors add value

Success-Not only do we find the accurate value of our client’s business, by focusing on making a positive difference in our client’s lives, success is achievable. Working through the sale to fulfill the goals of our sellers, allows everyone to realize success with a rewarding deal.

• Flexibility is the key to a successful deal
• Professionals have coaches
• Succeed where others failed

Other helpful articles about selling your business.

• 3 common mistakes in selling
• Exit strategy pays off
• Investment banker gives advice like a business partner

About Cornerstone

When it comes to business location isn’t everything

Learn more about buying a business visit: Helping you buy a business

Learn more about estimating the value of your business visit: Helping you estimate the value of your business