Sell Companies for Maximum Value

Typically, 75% or more of a business owner’s net worth is in their business – but business owners frequently sell their business for less than the real value of the business.

From our experience, there are four reasons why business owners fail to get full value when they sell their company:

  1. For most business owners, selling their company is a once for twice in a lifetime experience, and they don’t know how to maximize the value of their business when they sell.
  1. Owners of small and mid-sized companies frequently sell their business to family members or employees – and family members and employees are not able to pay what the company is worth.
  1. Business owners leave money on the table when they sell because they think selling a company is easy, and they can do it themselves or use their attorney or accountant to help them. Getting maximum value when you sell a business is not easy – and most attorneys and accountants do not have the skills or experience to get full value for a business owner.
  1. When owners sell to third-party buyers, the buyers frequently have extensive experience in buying companies, and they can take advantage of the business owner’s inexperience in selling companies.

Building on our experience in selling more than a hundred closely held and family-owned companies, Corporate Performance Group provides specialized expertise and support to help business owners and entrepreneurs sell businesses for the maximum possible value.

Determine Exit Objectives & Timing

The first thing we do is help business owners evaluate their exit options, develop a schedule, and determine the best way to sell their company.

Identify Valuation Improvements

Then, using value creation techniques used by leading private equity firms, our experienced advisors go behind the numbers to identify and prioritize opportunities to increase the value of the company.

Drive Valuation Improvements

After identifying valuation improvement opportunities, we provide transformational change, operational improvement, organizational development, and financial management support to help business owners drive valuation improvements.

Develop Selling Strategy

When a business owner decides to sell, we provide specialized support to define the company’s “value proposition” and develop a selling strategy to create maximum sales value for the company.

Prepare Marketing Materials

Building on our extensive sell-side experience, we put together a financial model and offering document to market the company.  An effective offering document should tell a compelling “story” about the company and emphasize the strengths and value proposition of the company.  It should also anticipate and deal with any potential problems or challenges in selling the company.

Create Market for Company

To create a market for the company, we identify and contact a broad range of potential buyers, including private equity, family offices, and strategic buyers.

Negotiate Sale Price and Terms

We help business owners negotiate favorable sale prices and terms because, with our experience, we can match even the savviest buyer’s experience and negotiation skills.

Provide Transaction Support

Many potential company sales hit a wall in the due diligence and closing processes.  We provide transaction-specific support to help business owners successfully navigate due diligence and complete the sale of their company.

Experience

Corporate Performance Group helped:

  • The owner of a manufacturing and distribution company increase the sales price he received for his business by 400% in less than four years.
  • Owners of an oil field products company sell to a larger oil services company. The final sales price was more than double the original offer from the acquiring company.
  • Owner of a specialty manufacturing company restructure and sell a majority interest in the company to private equity investors and key executives.
  • Business owner increase the value of his company by 500% and develop a successor to take over the company before successfully exiting the business.