M&A Advisory for Middle Market Business Owners
Frequently Asked Questions
Q. How long does it take to sell a company?
A. It varies from company to company, but we generally tell clients to expect it to take 9-12 months. There are many moving parts and numerous variables. We have seen deals happen in as little as a couple of months and others take over a year.
Q. How do you locate buyers?
A. Vercor implements a three pronged marketing outreach campaign conducted with strict confidentiality. The first component is exposure in deal sources. There are numerous online and print sources buyers visit in search of deals – we make sure a blind summary of your deal (no name or location) is in there. The second component involves approaching private equity groups and strategic buyers. Lastly, we connect with centers of influence such as attorneys, CPA’s, and other dealmakers around the country.
Q. How can I be sure my confidential information is protected?
A. We adhere to a strict confidentiality policy. We never share the identity of our clients or any information that would denote who they are without first having prospective buyers sign a rigid confidentiality agreement. Maintaining confidentiality is a vital part of the process.
Q. How will you value my business?
A. Before we accept an engagement, we conduct a market value assessment. A market value assessment is a real time evaluation of how marketable your company is and at what value range. This process is not about determining what the maximum value your company will bring. It is about establishing probability. Our market value assessment evaluates the current M&A climate and real time information reflecting current values in the market.
Q. Can I sell part of my business rather than all of it?
A. Oftentimes business owners are interested in retaining an ownership position moving forward. There are many buyers who are open to buying a portion of a company rather than the entire enterprise.
Q. Why not let my attorney or CPA handle the sale of my business?
A. Certainly your trusted CPA and attorney will be an integral part of the process, but most attorneys, accountants, investment advisors, and other financial advisors lack VERCOR’s experience, credentials and global resources to maximize the value of all your assets, bring multiple offers to the table, and successfully negotiate the best terms possible.
Q. What can a VERCOR M&A advisor do for my company?
A. A VERCOR professional is a seasoned deal maker who knows how to effectively find and close deals. Our team’s specialized experience is crucial, from guiding a company through the maze of preparation, to maximizing the company’s value, to negotiating differences between the offer and the seller’s goals, to closing the deal.
Q. What if I already have negotiating experience through my business?
A. Many people are effective negotiators in areas in which they have expertise and experience, but it is a slippery slope to negotiate a business sale where lack of experience can be costly. Emotions on both sides run high and can derail a deal. VERCOR negotiators have experience in settling differences and options to offer both parties that keep a deal on track.
Q. Will my business suffer while going through the process?
A. If you handle it yourself, probably so. If you delegate it to VERCOR, we will handle the process in the background while you focus on the business. This isolates your employees and competitors from knowledge of the sale, avoiding fear and low morale.