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Sierra Company, LLC
focuses on selling and buying small to mid-market businesses, and the “Fair Market” valuation of those entities.
That’s all we do, and we are completely committed to being the BEST Company providing those services. Each Sierra Company, LLC
professional has been through the buy/sell process with their own Company at least once, as well as facilitating the process
many times. We understand that you need clear, unbiased answers to many questions which are often difficult to ascertain from
an inside perspective. Our innovative process combines proven marketing strategies, negotiating techniques
and state-of-the-art resources that have been honed through many difficult transactions. Below is
an outline of the steps you can expect in a typical Sierra Company, LLC transaction.
Initial
Interview - Our first objective
is to fully understand you, your business and your business sale objectives. We can only meet your needs
when we fully understand factors such as: your motivation for selling, timing, price expectations and the overall exit strategy.
Valuation Estimate – The next step is to determine
the “Fair Market Value” of your business. This will require access to your company’s
financial and general operating information. The purpose of this step is to clearly outline how the market
looks at business value and the key variables that positively and negatively impact price, terms and structure.
With a valuation, general understand of your market place and your exit strategy we can help you determine if the timing
is right to go forward, or what changes could positively impact value.
Marketing Strategy – Once the
decision is made to go forward, a marketing strategy is prepared with you. This outlines which of the many
marketing channels we will utilize in selling your business, target acquisition candidates and strategies, potential
candidates in the Sierra Company, LLC
buyer inventory, prospects to be avoided, general approach and confidentiality considerations. The result
of this strategy shapes the marketing documents prepared in the next step.
Business Offering Documents –
Today’s sophisticated buyers require specific information for the review of a business. We package
this information, base on the marketing strategy above, into an Executive Summary and Confidential
Business Presentation. This ensures a favorable presentation, while
providing the acquirer with the detailed information they expect. The package informs buyers of the many
intangibles positives of your Company to raising perceived value. The goal is to highlight the positives
of your business in a professional and compelling manner that inspires additional interest.
Research
– Research – Research - The cornerstone
of our success is locale, regional and national research! We continuously and confidentially study, seek
out and engage acquisition candidates in many buyer categories with a high probability for a favorable transaction. We utilize,
trade publications, Association memberships, industry and national databases and several other means of identifying target
candidates. While many of our campaigns involve advertising, the majority of our successfully buyers come
from our process of proactively seeking them out.
Qualification, Presentation & Review – No information
about your company will be given to any prospective buyer without obtaining a signed Non-Disclosure and Confidentiality Agreement as well as Broker Disclosure. Buyers are also qualified financially where appropriate
which may include the submittal of a Confidential Buyer Profile and credit research. We field all incoming responses,
obtain the proper agreements, send out the Offering Documents and address the many initial buyer questions. We
also gain a solid understanding of the buyer’s financial ability, interest level, motivation and fit with your company
before introducing you to a buyer.
Letter of Intent (LOI) – After the initial meeting with
a prospective buyer, there will be a series of questions and information to be exchanged. Buyers should
be prepared to submit a one to three page Letter of Intent with our assistance shortly after that time. The
letter of Intent spells out the general price and terms of the offer along with any contingencies. The
LOI is either accepted, countered or rejected until there is agreement between Buyer and Seller. At that
time a deposit is required and the Buyer is typically given an “Exclusive period” to conduct due diligence and
complete a Purchase and Sale Agreement will the Seller.
Negotiations
- Negotiations between the Buyer and Seller can sometimes be
tense. Managing offers and negotiating the best possible deal, while keeping the process on track to a
successful closing is a critically important component of our job. Having been through the process many times, Sierra Company, LLC professionals
can facilitate the process to resolve issues as they arise and control all aspects of the deal until resolution is reached.
This gives you complete control over the process without being immersed in details, while allowing you to concentrate on operating
the business.
Due Diligence - The offer is usually contingent on the buyer verifying the accuracy of the seller's
financial and operational representations. We manage the buyer carefully as they go through the process of due diligence and
inspecting business information. This process also involves managing and settling all contingencies until the contingencies
are removed from the Letter of Intent/ Purchase Agreement.
Purchase Agreement – We work closely with Seller, Buyer
and both attorneys to insure your interests are protected in the preparation of a definitive Purchase Agreement until the
document is signed by all parties.
Closing - This is the point where your objective is realized, the funds are transferred
and the sale process is complete.
Transition Period - This involves a period of cooperation between you and the Buyer to complete the transition
of business ownership including key relationships and proprietary information. The time required for this process often varies,
but generally takes one to three months.
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