JPMongrain takes a three-step process to selling a business. It is based on preparing clients (sellers) to deal on a level playing field with the more experienced buyers and in attracting buyers who will pay fair market value. Step 1 - Business Analysis Research is performed by JPMongrain as if a buyer were scrutinizing your company. The result of this is a report that will allow a client to deal with buyers' requests for due diligence. It starts with market research which is a key step in the process of selling a business for the highest price. Many aspects of a business are considered, including industry trends, management, competition, niches, geographic influences, life expectancy of products/services, market definition, market share, legislative factors, world influence and of course, what motivates a buyer in a particular industry. Valuation is generally done by JPMongrain looking at the business from numerous points of view - the most common being: historical re-casted earnings, present value of assets with goodwill and, most importantly, future sustainable earnings. Value enhancement opportunities are often uncovered and, with some effort on the part of the owners, can significantly increase the value of a business in a relatively short period of time. These opportunities, if they exist in your business, will be detailed in a clear, easy-to-understand format. Step 2 - The Marketing Plan Once a decision has been made to go to market, JPMongrain develops a comprehensive program to target, search, research, approach and attract the best buyers available. Maintaining confidentiality is critical during this phase. Marketing of a business requires the careful creation of a profile that emphasizes the future strengths of that business, its markets, customers, employees and suppliers, remembering that the true value lies in future earnings. JPMongrain spends a great deal of time documenting a believable future. A de-identified factum is also created for distribution to members of our buyer database. Your Support Team, including your lawyer, accountant, tax planner and other specialists should be identified, qualified and brought up to speed. It is most important that they are brought in early, to allow them time to plan and to be part of the process. A Marketing Strategy is developed along with an extensive search of numerous databases throughout North America. You play an active role with JPMongrain at this stage, to review and approve targeted potential buyers. Quite often, a “No Asking Price” approach ensures that a ceiling is not placed on the value of your business when it's taken to market. Buyers from all over the world will be contacting us. Careful screening as to the motivation and financial qualification of all inquirers are quickly and efficiently determined. Confidentiality is paramount and Confidentiality Agreements must be signed as part of the screening process. Strategic or Synergistic Buyers tend to pay more for a business than investment or employment buyers. It is important to search for these prospects during the initial stages of a buyer search process. Step 3 - Negotiating and Closing Handling the negotiation with selected buyers and completion of the transaction at the best possible structure and price (after tax) is our ultimate objective. Negotiation occurs over a broad range of topics and issues. JPMongrain will represent your interest throughout this arduous process, during which the fine details of the formal agreements are determined. Due Diligence requires careful control and monitoring by an experienced individual, skilled in directing the proper information to the buyers. If proper documentation is done from the very beginning, then there should be no surprises or problems later on, which could postpone or prevent a successful closing.
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