First, we find out some general information, such as who your customers are, your area of expertise in consulting services, and your employees’ skills. Then, we will review your financial information to determine what your overall company worth is. During this step, we may analyze your firm’s:
- Sales
- Profit
- Location
- Growth trends
- Market position
- Drivers of new sales
- Reliance on the owner
- Channels that attract new customers
- Processes and systems that run the business
Identify any potential problems that could impact your sale and put yourself in a strong position to negotiate with buyers by understanding return on investment (ROI), current market activity, buyer risks, and your ability to positively affect a buyer’s business.
Next, we can provide you with a recommendation on a potential asking price for your consulting business. We’ll take into account the unique aspects of your business as well as what other similar consulting companies have sold for. If you decide to move forward, we will have you sign our listing agreement.
Before signing, we’ll let you know if this is something we feel comfortable selling. We only get a fee if we sell your consulting firm, so we want to make sure we are on the same page regarding the valuation of your consulting business.
While you continue business as usual, we will help you create a list of potential buyers who may be interested in your consulting firm. Put the buyers into groups according to their potential synergy with your company, as synergy factors can influence the price significantly. Your buyer list may include first-time buyers, competitors, entrepreneurs, and private equity companies. At Synergy Business Brokers, we have a huge database of buyers we can use to help you build your list.
Once we have the listing agreement in place, we will write up a summary about your business that provides enough information to get buyers interested but not so much that it gives the identity of your business away. We will use this write-up for marketing your business in several ways. We will advertise your business on many companies for sale websites, some of which have over 10 million page views monthly. Additionally, we will contact the potential buyer database that we have cultivated for over 15 years.
Also, we will reach out to other consulting firms both in your industry and in other sectors. Our merger and acquisition experience allows us to sell your business and potentially merge it with another consulting firm. We have expertise in business broker consulting to provide you with the best options.
The next step is to reach out to the potential buyers on your list to assess their interest and pre-qualify them. An interested buyer signs a non-disclosure agreement (NDA) that prevents them from revealing information to third parties and reduces the risk of a buyer poaching your staff if they do not or cannot purchase your consulting firm. The potential buyer will also receive a copy of the information memorandum (IM), so they know the benefits of making the purchase.
Finally, you’ll consider your offers and choose a buyer. Then you’ll request a Letter of Intent or terms document that describes the offer and due diligence. In the period that follows, you cannot move toward a sale with a different third party. Due diligence may include an assessment of financial and legal concerns and client relationships. You will then sign a sale and purchase agreement.
