The Selling Process
Parkwest advisors will help company owners prepare for a sale at no cost to the seller! Some companies come to Parkwest even up to 2 years in advance of selling to begin the transition. We will advise as to what we believe your company valuation is, and if isn’t in your desired target range, we will consult on recommendations to potentially reach the goal asking price. We can also advise on creative solutions to consider such as earn-outs or “prove-outs” for high growth situations.
Once a seller has made the decision to have Parkwest represent their company in a sale, data collection will be the primary effort made initially. We will build the cash flow statement together to determine the net income of the company once all owner benefits are added back in. This gives us the foundation for valuing a company.
After the financial picture is put together, a professional marketing packet is designed to include company history, growth opportunities, organizational charts, financial statements, and photos. We offer much more than the standard firm with 1-2 page overviews. Ours are very encompassing, and the packet tells a story beyond just financials. Most average between 16-20 pages, and will showcase the efforts a seller has made to build an excellent business.
When the data collection and marketing packet is complete, the company gets confidentially placed on line as being for sale. Parkwest advisors are very conscientious about how to list the company without making it known who the company is, or where it is specifically located.
Buyers will be able to review the opportunity, and if interested, contact Parkwest for further information. We require all buyers to sign a Non-Disclosure Agreement (NDA), which includes space for them to identify their financial capability. If they do not meet the minimum requirements to acquire this particular opportunity, the marketing packet will be made unavailable. Everything will be kept confidential unless the buyer has the capability to acquire.
- Buyer receives and reviews marketing packet
- Buyer conference call with Parkwest Business Partners, Inc. for initial Q&A session
- Further information sent as necessary
- Conference call with sellers
- Confidential site visit with sellers
- Buyer makes an “Offer to Purchase”
- Open discussions and further discovery with buyer and seller
- Acceptance of “Offer to Purchase” if final transaction amount and offer terms agreeable
- Buyer places good faith deposit in escrow account
- Parties begin due diligence with accountants, attorneys, and necessary professionals
- Buyer starts the funding process with lending institution
- Upon completion of due diligence and funding to buyer, sign legal documents of transaction “closing”
- Transition of ownership (Asset Purchase Agreement), transaction gets funded with monies being electronically sent to seller’s financial institution
- Seller begins training with buyer