Map out a clear path forward:
- When is the right time to realize liquidity? - Initial Business review and goal setting discussion
- Business Financial Results and Personal Goals
- What are the target liquidity values?
- Many business owners have not defined their target 'exit' value(s)
- The 'floor'
- The 'extended security'
- The 'big dream'
- What are the owner's current personal financial goals?
- Key data point - Only 3% of US has >$1M of liquid assets
- What level of success does the business need to achieve in order to meet personal goals?
- Sale price
- EBITDA size or specified date
![]()
![]()
Typical Process when Selling a Privately Held Business:
- Engage a business broker or investment banker
- Take a significant amount of time to develop the offering materials
- Offering materials distributed
- Potential buyers detailed questions asked and answered
- Numerous potential buyer meetings
- Obtain an LOI from potential buyer
- Enter into the Due Diligence phase
- Potential buyers are often surprised by something in due diligence
- Operations
- Market
- Customer
- Legal
- Macro environment negatively changes
- Most LOIs don't wind up closing
- Obtain a final LOI
- Potentially renegotiated by buyer
- Potentially from an alternate buyer
- Negotiate final purchase documents
- Close transaction
- Entire process often takes one year or more
- New owners may or may not respect the sellers and the business as it was developed prior to transaction
|
![]()
Target Duart Transaction:
- 80% asset purchase transaction with sellers having a 20% equity interest in the NEWCO
- Effectively transition business operations in order to work effectively with new ownership
- Customers and business partners valued and respected
- Business team respected
- More opportunity provided post closing for the team
- Provide opportunity for maximum ultimate financial success for sellers
- Build to Sell Program
- If business owners are not ready for a transaction today you may enter into the "Build to Sell Program"
- Duart partners with business owners to grow business in order to meet predefined owner goals.
|
