Business Sales & Divestitures and Seller Representation
At JD Ford, we represent entrepreneurs who have built substantial companies, as well as family businesses that have been passed through multiple generations. We also represent principal investment firms seeking to harvest the investments that have been made in building their portfolio companies. Whether our client is an entrepreneur, family business owner, or professional principal investor, we utilize our proven four-phase Competitive Interview Process™ to sell a company for top dollar.
The Competitive Interview Process ™ is designed to generate excitement regarding the opportunity to acquire a business, and simultaneously bring multiple qualified buyers to the table. Multiple offers on the table simultaneously allow our clients to choose the best buyer, as well as the most favorable terms and conditions. The Competitive Interview Process ™ almost always results in a selling price that far exceeds what could have been realized via a traditionally negotiated sale, and enables business owners to achieve non-financial objectives as well, such as employee continuity.
Generally, the Competitive Interview Process ™ includes:
Phase I: Pre-Sale Planning and Pricing
During this phase, JD Ford analyzes the owner’s objectives, assembles an experienced transaction team (including, at a minimum a CPA and a M&A attorney) and begins the pre-sale Due Diligence process. Our Financial Analysts establish a likely sale price based upon historical financial data, future earnings potential, current market conditions and particular industry factors.
Phase II: Marketing the Business
At this point, JD Ford develops a profile of the ideal buyer and identifies companies that match that profile. To attract these buyers, JD Ford creates a “Confidential Information Memorandum” that provides potential buyers with an excellent first impression of our client by telling the story of the company for sale and gives potential buyers all of the information they need to make an informed, credible offer for the company.
JD Ford then draws upon its experience in the marketplace and the extensive contacts and relationships of its principals to reach out to potential buyers. JD Ford has established worldwide networks of decision makers. JD Ford’s professionals make the initial contact with potential buyers, reflecting the credibility of your business and the seriousness of your intent to sell.
Of course, all potential buyers are required to sign Confidentiality Agreements before receiving specific information or learning the identity of your company. Meanwhile, JD Ford performs preliminary due diligence on potential buyers to assess their ability to consummate the transaction. It is at this point that the competitive nature of the process begins. Qualified, interested and excited buyers begin bidding in earnest for the privilege of owning your company.
Phase III: Negotiating the Terms
Once negotiations begin in earnest, JD Ford’s professionals draw upon years of experience navigating the complicated waters between the offer to buy and the final closing. We know how to keep deals from floundering on the rocks that doom so many transactions to failure. Our clients hire us because they trust our experience and skill. This is where we have historically shown our clients that their trust is well-founded.
Phase IV: Documentation and Closing
Our role during this Phase is to coordinate the efforts of transaction team members to ensure that the transaction is closed efficiently and that the former owner walks away from the transaction having met all of his or her exit objectives. Using these methods, JD Ford not only maintains the speed necessary to complete a transaction, but we prevent the business owner from becoming distracted. The owner’s focus must remain on the profitability of his company–not on the transaction process. Maintaining profitability during the sale process is a key element to a successful transaction.