What We Do For You
DGN Advisory’s business brokerage services prepare, market, and negotiate the best terms for the sale of your business to maximize the proceeds received and minimize the impact and disruption to your business. Our experience and beginning to end approach ensures the best result for you in this important and complex process. Our knowledge of the Northern Michigan market makes DGN Advisory the best choice.
Defining the Process and Establishing Expectations
The process of selling a business can be long and grueling, with many peaks and valleys. The key to success is a steady hand to be your guide and the DGN Advisory team are experts at determining value and managing the process.
The time required to sell a business is often underestimated. Ideally, the exit and transition process should start with planning, 1-2 years in advance, to maximize cash flows and minimize risks. Once the active sale process starts, it often takes 9-12 months to market and closes on the sale.
The value of a company, in its simplest form, is the cash flow generated divided by a risk-adjusted rate of return that a buyer is willing to accept. Determining this upfront, and helping the seller to understand the realistic value and proceeds to be realized, increases the success of the transaction by having proper expectations. Beyond the value of the business, a seller’s proceeds can be impacted by the transaction structure and taxes. The DGN Advisory team has all the tools and experience to capture maximum value.
Assembling the Team
DGN Advisory knows the key to a transaction’s success is a strong team and will assist in involving the seller's trusted advisors. A seller’s attorney, CPA, and investment advisor are key to the process and need to be organized and involved.
Marketing The Business
DGN Advisory knows what pertinent information to include in a formal selling Memorandum, and we build this crucial document to highlight your business in the best light possible. A professionally prepared Information Memorandum will give your business credibility and help buyers gain confidence.
There are two basic types of buyers, strategic and financial. Strategic buyers are businesses looking to grow through acquisition and are good candidates to purchase your business because they can often pay a premium due to synergies. Financial buyers are seeking businesses for investment purposes and can often energize a business by providing capital and resources to accelerate growth. Identifying buyers and determining the best buyer for your business is why you need the experienced team at DGN Advisory.
Negotiating the Transaction
After a buyer is found, negotiating and structuring the transaction is at the heart of capturing value. With many twists and turns, the process can be stressful and emotional for all parties and an experienced team can make the difference between success and failure. DGN Advisory works as the intermediary and coordinates with your legal team to ensure the transaction goes smoothly.
Key Considerations in the Sale Process
Setting Expectations of Timing and Valuation
Managing Business Disruption
Planning for Maximum Value
Maintaining Stamina and Energy
Planning for Owner Transition and Reduced Dependence
Preparing for Due Diligence