Selling A Company
This is the mainstay of our process -- to protect your customer base and employee morale. Our meticulous, thorough procedures ensure your company’s identity is protected through the sales process. Every potential qualified buyer signs a confidentiality agreement before learning the company’s identity and proceeding.
We first create a team environment with your financial, legal and tax advisors so as the sales process unfolds and the need for their expertise arises, they are there to assist. The tax aspects are addressed to analyze the various options regarding structure; asset, stock, or membership sale and the corresponding tax consequences. Transitional management needs to be addressed. A solid management plan should be created to give potential buyers confidence that the business will have a smooth transition of ownership. PGI creates a step by step exit plan to maximize your value.
We look at the elements of your business and create a “position of strength” from which to negotiate and work. Our Confidential Offering Memorandum is the first step and showcases your business with the goal of giving buyers enough information to make an offer in a timely manner. This is part of our process that brings offers to the table at the same time. This presentation is not just a collection of charts, graphs and financial statements—it's a thorough and impressive offering book providing a complete description of your business, telling the story of your success, growth opportunities, competitive advantages and providing a stimulating vision for the future. The result is up to a 150 page dynamic sales and marketing package to maximize your value.
Before we make a market for your company we first educate you as to how to deal with the process. This strengthens your ability to successfully respond when talking and meeting with buyers and better equips you for the ongoing decision making. We cover the following topics with you until you have a reasonable understanding and command of the process:
On a CONFIDENTIAL basis, we conduct an eight point strategic sales and marketing program on a national, and when required, an international level. This generates both financial buyers and strategic buyers who are generally competitors or companies in a similar field. We spread the sales and marketing net deep into all corners of the market with proven results.
Many times a challenge in having a buyer respond in a timely manner is the result of an onerous nondisclosure agreement (“NDA”). It may take days or weeks of back and forth negotiations to reach mutual agreement. This can delay the timing of offers. PGI has had a one page but adequate NDA crafted by a regional law firm where only the buyer is named and is binding even though the company or client is not included in the agreement and is not revealed until the buyer has first signed. PGI will submit this special sell-side NDA to a clients legal counsel for approval.
It takes skill, honesty and experience to get Buyers to the table at the same time. We have developed our proprietary “Deal Point” process, where the goal is to get multiple offers at the same time and negotiate them simultaneously to maximize your value. We usually offer no asking price to the buyers. Different buyers can have different values for the same business. A price merely limits value. The result of our Deal Point process is a controlled and ethical auction that has created surprising results. We have been able to repeatedly obtain maximum value for our clients. Again, our sellers’ letters of reference say it best.
Managing the closing is a critical part of the process. It is easy for a transaction to get high-centered, become stalled and die. PGI’s four decades of experience keep the deal moving. We have found that the highest risk of losing a transaction occurs after an offer has been accepted. This is where PGI has created another proprietary process: the "Roadmap to Closing." Here we create a team environment instead of an adversarial one (one legal team against the other) and assist in the due diligence, third party consents, lease requirements, UCC filings, real property matters and legal issues that bring you to a successful and timely closing. We stay fully involved and maintain an active presence from start to finish. The Roadmap to Closing process shepherds the deal with weekly updates to a successful closing.
Anchor Fireplace Products
"It's hard to sell a business after spending 25 years building it. People need to be found with the right fit to continue on with your "baby." The Piper Group brought people to the table until [we found] the right buyers.">
Hampshire Equity Partners
"Very few of the offering memorandums that we reviewed compared to the level of detail you presented.">
FHJ Supply Co., Inc.
"Immediately, Rick's knowledge, familiarity, and expertise generated multiple potential buyers from all over the West Coast">